The First Homes scheme is a UK government initiative designed to help key workers and first-time buyers purchase a new build home at a significant discount.
It aims to boost affordability and support those working in essential public sector roles, making home ownership more achievable for key community members.
Cheshire East Council writes on “First Homes Scheme for Key Workers”
Cheltenham Borough Council writes on “Key Workers and First Homes” Guide
Homes are sold at a discount of at least 30%, and sometimes even more, depending on the area or local council policy.
| Criteria/Feature | Details |
|---|---|
| Eligible Occupations | NHS staff, teachers, police officers, firefighters, social workers, prison officers, care workers, and other public sector roles |
| Income Limits | Typically under £80,000 outside London, £90,000 within London (may vary locally) |
| First-Time Buyer Requirement | Must never have owned property anywhere |
| Discount on Purchase Price | Minimum 30% off market value, up to 50% in some areas |
| Property Type | New build homes approved by local council |
| Resale Condition | Discount must be passed on to future buyers to maintain affordability |
Who Qualifies as a Key Worker?
Key workers are at the scheme’s core.
Eligible roles include NHS staff (doctors, nurses, paramedics), teachers (including teaching assistants and education psychologists), police officers, firefighters, social workers, prison and probation officers, and many care workers.
Some councils may expand this definition based on local needs, so always check your local authority’s list.
Key worker accommodation ensures staff can live near their places of employment, vital for recruitment and community function.
Checking Scheme Eligibility Criteria
Applicants must be first-time buyers who have never owned property anywhere before.
Your household income must typically be under £80,000 outside London or £90,000 in London.
Local councils can set stricter income or price caps, or prioritize applicants with strong local connections (living or working nearby, or close family residing locally).
You can apply jointly as a couple if both parties are first-time buyers.
Special exemptions, such as for armed forces personnel, may apply. Check all local eligibility requirements, as they sometimes vary from national guidelines.
How Does the First Homes Scheme Work?
Discounted homes are sold to key workers as their main residence.
The minimum discount is 30% off local market value, but some areas offer up to 50%.Only certain new build properties, approved by your council, qualify.
When the discounted home is resold in the future, the same percentage discount is passed on—this keeps the property affordable for the next buyer.
Buyers are not permitted to use the property as a buy-to-let or second home.
Step-by-Step Guide to Buying a Home With the Scheme
- Confirm Eligibility
Ensure your job is recognized as a key worker role and that you meet the first-time buyer and income requirements.
Check with your council or registered housing provider for exact details. - Search for Eligible Homes
Look for new builds in your area that are approved for the First Homes scheme.
Check council and housing association websites for listings of available properties. - Application Process
Prepare documents showing your job, first-time buyer status, proof of income, and evidence of a local connection (if required).
Submit your application via the housing developer or registered social landlord managing the property. - Assessment and Approval
The local council or selected provider reviews your application against eligibility and prioritizes key worker applications.
If accepted, you can reserve your home and move forward with the buying process. - Purchase Completion
You’ll need a mortgage in principle and will work with advisors and solicitors to complete the sale.
Your home purchase will include documentation showing the discount and future resale restrictions.
What Are the Benefits for Key Workers?
- Affordability: Key workers buy new homes at a price below market value, easing the path to ownership.
- Community Living: The scheme helps you remain close to your work and family, supporting community cohesion.
- Recruitment & Retention: Makes it easier for public sector organizations to attract and keep staff in locations with expensive housing.
- Future Affordability: Properties remain affordable for the next buyers due to resale restrictions.
- Policy Flexibility: Local authorities can tailor scheme access to suit area needs.
What Are the Alternatives if I Don’t Qualify?
If you don’t meet First Homes requirements, look at:
- Shared ownership: Buy a share of a home, pay rent on the rest, and increase your share over time.
- Intermediate rent: Pay a discounted rent, often 20% below market rate, available for key workers.
- Homebuy equity loan: Borrow a portion of the home’s price, repaid when you sell or refinance.
Common Questions Answered
FAQ
Who is eligible?
Key public sector workers as defined by your local council or the national scheme.
Check with your local authority for area-specific details.
What is the household income limit?
Usually £80,000 outside London and £90,000 in London, but local authorities may apply stricter rules.
How do I apply?
Visit your council website or contact housing associations participating in First Homes.
Prepare proof of employment, income, and first-time buyer status.
Is the discount permanent?
Yes, the discount applies to all future resales, ensuring continued affordability.
Can I buy with a partner?
Yes, as long as both of you meet the eligibility criteria.
How to Get Started
- Visit your local council’s “First Homes” or “Affordable Housing” page for the latest list of participating developments.
- Contact registered social landlords to ask about available homes and start your application.
- Use online eligibility calculators to check your qualification quickly.
- Speak to a mortgage advisor or financial expert to understand your options and obligation
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Resource url :
- Official UK Government First Homes guidance page:
https://www.gov.uk/guidance/first-homes - Detailed First Homes scheme explanation by David Wilson Homes (example developer):
https://www.dwh.co.uk/offers/first-homes/ - Government PDF guide on First Homes:
https://assets.publishing.service.gov.uk/media/5e3d4521e5274a08deb46b8f/Guide_to_First_Homes.pdf - GOV.UK first-time buyer’s guide for First Homes:
https://www.gov.uk/first-homes-scheme