Who qualifies for the First Homes Scheme eligibility checklist 2026

Last reviewed: April 2025 · 6 min read · Category: Government schemes for first-time buyers

The quick answer — do you qualify?

You qualify for the First Homes Scheme if you are a first-time buyer in England, your household income is below £80,000 (or £90,000 in London), and you are purchasing a new-build property from a registered developer at a minimum 30% discount off the full market price.

If any of those four conditions are not met, you will not be eligible. Read on for the full eligibility breakdown, income cap details, and the priority rules that could move you to the front of the queue.

_{Source: GOV.UK — First Homes Scheme: first-time buyer’s guide · Medway Council — First Homes eligibility criteria}

First Homes Scheme eligibility — at a glance

Eligibility at a glance — all requirements in one place

Requirement	England (outside London)	Greater London
First-time buyer	✓ Required — never owned property	✓ Required — same rule
Household income cap	Under £80,000 gross/year	Under £90,000 gross/year
Property type	New-build only	New-build only
Minimum discount	30% off market value	30% off market value
Maximum discount	50% off market value	50% off market value
Max discounted price cap	£250,000 after discount	£420,000 after discount
Mortgage required	✓ Yes — min 50% of price	✓ Yes — min 50% of price
Cash purchase allowed	✗ No	✗ No
Key worker priority	3-month priority window	3-month priority window
Local connection priority	Council can apply this	Council can apply this
Joint purchase — both must qualify	✓ Yes	✓ Yes

Sources: GOV.UK — First Homes Scheme overview · Malvern Hills District Council — National criteria · Medway Council — Eligibility criteria

What counts as a first-time buyer for the First Homes Scheme?

You are a first-time buyer if you have never owned a residential property — in the UK or abroad — either on your own or jointly with someone else.

This includes properties you may have inherited or received as a gift.

If you inherited a share of a property at any point, even if you never lived there, you are no longer classed as a first-time buyer under HMRC rules.

If you are buying jointly, both buyers must be first-time buyers. One partner having previously owned a property disqualifies the entire application.

^{Source: Hull City Council — First Homes eligibility — “all buyers involved must meet the first time buyer eligibility criteria, meaning that they’ve never owned a property in the UK or abroad.”}

What is the income cap for the First Homes Scheme?

The income cap is £80,000 gross household income per year across England, rising to £90,000 in Greater London.

This figure is based on your combined income if buying with a partner. It includes:

• Basic salary from employment
• Self-employment income (average of last 2 years)
• Any regular rental income
• Investment income above £2,500 per year

Property price cap examples — does your purchase qualify?

Full market value	Discount applied	Your purchase price	Within cap? (England)
£300,000	30%	£210,000	✓ Yes
£360,000	30%	£252,000	✗ No — exceeds £250k
£400,000	40%	£240,000	✓ Yes
£500,000	50%	£250,000	✓ Yes — just within cap
£600,000	30%	£420,000	✓ London only

^{Source: Worked examples calculated from confirmed price caps. Price cap data: GOV.UK — First Homes Scheme · MoneySavingExpert — First Homes guide}

It does not include child benefit, tax credits, or one-off bonuses — though some lenders may factor bonuses into their own mortgage affordability checks separately.

If your income is just above the cap, it is worth speaking to the local planning authority or developer directly. Some councils set a lower local income cap than the national figure, while others have applied for a higher cap in high-cost areas outside London.

If you inherited a share of a property at any point — even if you never lived there — you are no longer classed as a first-time buyer under the Finance Act 2003, Schedule 6ZA definition used by HMRC.

Income type	Counted in cap?
Employment salary	✓ Yes
Self-employment income (2-year average)	✓ Yes
Regular rental income	✓ Yes
Investment income over £2,500/yr	✓ Yes
Child benefit / tax credits	✗ No
One-off annual bonuses	✗ Not typically

What income counts toward the £80,000 cap?

Source: Malvern Hills District Council — “Have a combined annual income not exceeding £80,000 in the tax year immediately preceding the year of purchase.”

^{Source: Malvern Hills District Council — First Homes criteria — references “Schedule 6ZA of the Finance Act 2003 for the purposes of Stamp Duty Relief for first-time buyers.”}

Buying jointly? Both buyers must be first-time buyers. One partner having previously owned a property disqualifies the entire application from First Homes eligibility.

^{Source: Bury Council — First Homes Scheme — “If you are applying as joint applicants, you must both be first time buyers.”}

⚠️ Exception — Joint Borrower Sole Proprietor mortgagesA parent can be added to your mortgage (to boost affordability) without being added to the title deeds. Their prior ownership does not affect your eligibility — but this must be agreed with your lender and solicitor before reserving the property.

Does it matter where you want to buy? — property price caps explained

Yes. The First Homes Scheme property price cap applies to the discounted price — meaning the amount you actually pay after the discount has been applied.

The caps are:

• Outside London: the discounted price must be no more than £250,000
• In Greater London: the discounted price must be no more than £420,000

Here is how that works in practice:

Full market value	Discount applied	Your purchase price	Within cap?
£300,000	30%	£210,000	Yes
£360,000	30%	£252,000	No — exceeds £250,000
£400,000	40%	£240,000	Yes
£600,000	30%	£420,000	Yes — London only

This means the size of the discount matters. A developer offering only the minimum 30% discount may still price some buyers out if the full market value of the property is too high.

Who gets priority for First Homes Scheme properties?

Not everyone who qualifies will automatically get access to a First Homes property. Local planning authorities can apply priority rules that put certain buyers at the front of the queue.

The three most common priority categories are:

1. Key workers Many councils give first priority to essential workers including NHS staff, teachers, police officers, firefighters, and armed forces personnel. This priority period typically lasts 3 months from when the property is first marketed. After that, any eligible first-time buyer can apply.

2. Local connection Councils can prioritise buyers who currently live or work in the local area. This is defined differently by each council — some require you to have lived in the area for at least 12 months, others focus on your employer’s location.

3. Combined key worker and local connection Some councils apply both criteria simultaneously — meaning only local key workers qualify in the first priority window. This is most common in rural areas and smaller towns where housing demand is high but supply is limited.

How to find out your council’s priority rules: Search your local council website for “First Homes Scheme local criteria” or ask the developer directly — they are required to disclose the local authority’s priority rules before you reserve a property.

Do you need a mortgage to buy through the First Homes Scheme?

Yes. You must fund your purchase with a mortgage — you cannot buy a First Homes property with cash only, even if you have the funds available.

This rule exists to ensure the scheme supports buyers who genuinely need financial help accessing homeownership.

The mortgage must cover at least 50% of the discounted purchase price. Most buyers use a standard residential mortgage, and the scheme is compatible with all major UK lenders —

though not every lender has confirmed they will lend against First Homes properties, so it is important to check with a mortgage broker before reserving.

Can you buy a First Homes property with someone who already owns a home?

No. As noted above, all buyers named on the purchase must be first-time buyers. This applies to joint purchases with a partner, friend, or family member.

However, there is one exception worth knowing: the Joint Borrower Sole Proprietor mortgage structure allows a parent or family member to be named on the mortgage (to increase affordability) without being named on the title deeds.

In this case, the parent’s property ownership does not disqualify the buyer — but this arrangement needs to be agreed with your lender and solicitor from the start.

What happens if your income increases after you buy?

Nothing — the income cap only applies at the point of purchase.

Once you have completed on a First Homes property, there is no obligation to report future income changes and no mechanism for the scheme to claw back the discount based on your earnings after completion.

The restriction that stays with the property forever is the resale covenant — not the income cap.

When you come to sell, the same percentage discount must be passed on to the next buyer.

First Homes Scheme eligibility — full checklist

Before you approach a developer, run through this checklist:

• I have never owned a residential property in the UK or abroad
• If buying jointly, my co-buyer has also never owned a property
• My household gross income is below £80,000 (or £90,000 in London)
• I am buying a new-build property from a registered developer
• The discounted purchase price is below £250,000 (or £420,000 in London)
• I will be funding the purchase with a residential mortgage
• The mortgage will cover at least 50% of the discounted price
• I have checked my local council’s priority criteria (key worker / local connection)
• I have spoken to a mortgage broker and confirmed a lender will accept a First Homes property

If you can tick every box on this list, you are eligible to apply for a First Homes Scheme property.

Frequently asked questions

Sources & references

Every fact, figure, and rule in this article is sourced directly from official government publications, local council guidance, or established financial consumer organisations. All URLs verified April 2025.

• [1]First Homes scheme: first-time buyer’s guide — OverviewPublisher: GOV.UK (HM Government) · Last updated: October 2024https://www.gov.uk/first-homes-schemeUsed for: income cap £80k/£90k · first-time buyer definition · England-only rule · armed forces exemption · 3-month local criteria window
• [2]First Homes scheme: how to applyPublisher: GOV.UK (HM Government) · Last updated: October 2024https://www.gov.uk/first-homes-scheme/how-to-applyUsed for: LISA compatibility with First Homes · application process steps · conveyancer requirement
• [3]First Homes — Local Authority Guidance Version 2Publisher: Department for Levelling Up, Housing and Communities (DLUHC) · February 2024https://assets.publishing.service.gov.uk/media/65cdda7a1d939500129466c9/First_Homes_Local_Authority_Guidance_V.2_-_February_2024.pdfUsed for: Section 106 agreement rules · local income cap powers · resale covenant in perpetuity · councils’ ability to set lower caps
• [4]First Homes eligibility criteria — Medway CouncilPublisher: Medway Council (local authority) · Verified April 2025https://www.medway.gov.uk/info/200585/first_homes_scheme/1548/eligibility_criteria_for_first_homesUsed for: income cap does not apply after purchase · £250,000 price cap detail · mortgage 50% minimum rule · letting restrictions (2-year total)
• [5]First Homes Scheme — Malvern Hills District CouncilPublisher: Malvern Hills District Council · Verified April 2025https://www.malvernhills.gov.uk/housing/housing-advice/affordable-housing/first-homes-schemeUsed for: Finance Act 2003 Schedule 6ZA first-time buyer definition · income cap in tax year immediately preceding purchase · 50% mortgage minimum · 3-month local priority window confirmed
• [6]First Homes Scheme — Hull City Council eligibility criteriaPublisher: Hull City Council · Verified April 2025https://www.hull.gov.uk/regeneration-1/first-homes-scheme/2Used for: “never owned a property in the UK or abroad” — joint purchase both must qualify · local connection residency criteria (6 months in 12 / 3 years in 5)
• [7]First Homes Scheme — Bury CouncilPublisher: Bury Council · Verified April 2025https://www.bury.gov.uk/housing/buying-a-home/affordable-housing-types/first-homes-schemeUsed for: cash purchase not eligible · Islamic home purchase plan accepted · resale to eligible buyer at same discount · joint buyers both must be first-time buyers
• [8]First Home Scheme: how it works — MoneySavingExpertPublisher: MoneySavingExpert.com · Last updated: July 2025https://www.moneysavingexpert.com/mortgages/first-home-scheme-guide/Used for: £250,000 / £420,000 price cap confirmation · resale worked example (30% discount at point of sale) · scheme background and launch in 2021
• [9]Government schemes for first-time home buyers — MoneyHelperPublisher: MoneyHelper (Money and Pensions Service — government-backed) · Last updated: February 2026https://www.moneyhelper.org.uk/en/homes/buying-a-home/government-schemes-for-first-time-home-buyers-and-existing-homeownersUsed for: LISA £450,000 property cap · 25% annual bonus up to £1,000/year · LISA age eligibility 18–39