If you are a first-time buyer in England, you may qualify for the First Homes Scheme, which allows you to purchase a home at a 30% to 50% discount off the market price. However, you must meet specific eligibility criteria, and the property must be your only or main residence. This guide explains who qualifies, how the scheme works, and any additional local requirements you might need to meet.
What is the First Homes Scheme?
The First Homes Scheme is a government initiative in England designed to help first-time buyers purchase a home at a reduced price. Under this scheme, you can buy a property for 30% to 50% less than its market value.
Types of Homes Available
You can purchase:
- A new-build home from a developer
- A previously owned First Homes property, bought through an estate agent
This scheme is only available in England.
Who is Eligible?
To qualify for the First Homes Scheme, you must:
- Be 18 years or older
- Be a first-time buyer (you and anyone you are buying with must have never owned a property before)
- Be able to get a mortgage covering at least 50% of the property price
- Have an annual income of £80,000 or less (£90,000 in London) before tax
If You Are Buying with Others
If you are purchasing with someone else:
- All buyers must be first-time buyers
- The total household income must not exceed £80,000 (£90,000 in London)
- Everyone must apply together, even if only one person is getting the mortgage
Local Eligibility Criteria
In some areas, local councils may apply additional eligibility criteria. These may prioritize:
- Key workers, as defined by the council
- People already living in the area
- Applicants with lower incomes
These local requirements only apply during the first three months that a First Homes property is on sale.
Buying with Others and Local Rules
If you are purchasing with someone else:
- Your combined income must meet local criteria
- At least one buyer must meet any other local eligibility conditions
Special Exemptions for Armed Forces and Their Families
If you are connected to the armed forces, you may be exempt from local eligibility rules. You qualify for an exemption if you are:
- A current member of the armed forces
- A veteran who left the armed forces in the past five years
- A widow or widower of a service member whose death was linked to their service
- A former spouse or civil partner who has divorced or separated from an armed forces member
Even with an exemption, you must still meet the general First Homes Scheme eligibility criteria.
The First Homes Scheme is a great opportunity for first-time buyers in England to purchase a home at a 30% to 50% discount. To qualify, you must meet income and mortgage criteria, and in some cases, local councils may apply additional conditions. However, exemptions exist for members of the armed forces and their families. If you are looking to get on the property ladder, this scheme could make homeownership more affordable.
FAQ’s
What is the First Homes Scheme?
The First Homes Scheme is a government program in England that allows first-time buyers to purchase a home at a 30% to 50% discount.
Who is eligible for the First Homes Scheme?
You must be 18 or older, a first-time buyer, able to get a mortgage for at least half the home price, and earn no more than £80,000 (£90,000 in London) per year.
Can I buy a First Homes property with someone else?
Yes, but all buyers must be first-time buyers, apply together, and meet the income limit of £80,000 (£90,000 in London) combined.
Do local councils have additional criteria for the First Homes Scheme?
Yes, some councils may prioritize key workers, local residents, or those on lower incomes. These criteria apply only for the first three months of sale.
Are there exemptions for armed forces members?
Yes, current and former armed forces members, their spouses, and widows/widowers are exempt from local council eligibility rules.