Councils can add local rules, for example giving priority to key workers or veterans.
Quick facts
- Discount
- 30% to 50% off market value
- Who
- First-time buyers
- Income limit
- £80,000 (£90,000 in London)
- Mortgage
- At least half the price
- Price cap
- £250,000 after discount (£420,000 in London)
Who can buy
You must:
- be a first-time buyer
- be able to get a mortgage for at least half the price of the home
- not earn more than £80,000 a year before tax (£90,000 if the property is in London) - this is your income from the previous tax year
If you buy with others, you must all be first-time buyers and your joint income cannot be more than £80,000 a year before tax (£90,000 if the property is in London).
The homes
Developers offer these homes to first-time buyers with at least 30% of the market value taken off the price.
New build First Homes cannot cost more than £250,000 (or more than £420,000 if the property is in London) after the discount has been applied. The local council can lower this maximum price.
Local rules
Councils may set local eligibility criteria, such as giving priority to local people or key workers. A veteran who left the armed forces in the last 5 years may get priority.
Common questions
How much is the First Homes discount?
30% to 50% off the market value.
What is the income limit?
£80,000 a year before tax, or £90,000 in London, including joint buyers together.
What is the maximum price?
£250,000 after the discount, or £420,000 in London. Councils can set a lower cap.
Do I need a mortgage?
Yes, for at least half the price of the home.