First Homes Scheme eligibility (first-time buyers)

The First Homes Scheme is a government-backed initiative in England designed to help first-time buyers purchase selected new-build homes at a discounted price.

This page focuses on the main eligibility requirements you’re most likely to need to consider when assessing whether First Homes could apply to you.

What the scheme is designed to do

First Homes aims to make home ownership more achievable for people buying their first home, while also supporting local housing priorities. It does this by offering a discount on qualifying properties.

Because the scheme is delivered through local processes and participating developments, the exact experience can vary by area. However, the eligibility requirements below reflect the core rules that typically apply.

Key eligibility criteria

1) You must be a first-time buyer

To qualify, you must meet the scheme’s definition of a first-time buyer. In practical terms, this generally means you haven’t previously owned a property.

If you’re buying with someone else, the scheme’s requirements usually need to be met by everyone who will be named on the purchase.

2) Your household income must be within the limits

First Homes uses household income limits. The commonly referenced thresholds are:

• Outside London: up to £80,000
• London: up to £90,000

Income is assessed on a combined household basis for the people applying for the discount.

3) The property must meet the price cap (after discount)

The scheme applies to qualifying homes with maximum price limits calculated after the discount is applied.

Typical headline caps are:

• Outside London: up to £250,000 (after discount)
• London: up to £420,000 (after discount)

Local authorities may apply tighter caps for specific developments, so the only reliable way to confirm is to check the cap that applies to the particular home you’re considering.

4) The home must be your main residence

First Homes is intended for people buying to live in the property, not to purchase as a second home or for investment.

In most cases, that means the property must be your main residence.

5) You must have a local connection to the area

A key principle of First Homes is that it prioritises buyers with a local connection to where the home is being built.

How “local connection” is interpreted can vary by area and how the scheme is administered, but it may consider factors such as:

• where you currently live
• where you work
• family connections to the area

Because this can be nuanced, it’s important to check what the local process requires for the specific development.

6) The discount is intended to be retained for future qualifying buyers

If you purchase under First Homes, the discount is not treated as a one-off benefit. The discount is intended to be secured for the property, so that when the home is sold in the future, the discount should be passed on to the next qualifying buyer—provided the scheme rules are followed again.

This “retained discount” approach is one reason First Homes eligibility is often linked to ownership and resale conditions.

7) A mortgage is usually required (and minimum borrowing may apply)

First Homes is typically not designed for cash purchases. A mortgage is usually required, and there may be a minimum borrowing condition.

A commonly referenced requirement is that the mortgage must cover at least 50% of the purchase price after the discount.

That means even if you could pay more using savings, the purchase may still need to be structured so that the mortgage element meets the scheme’s minimum borrowing rule.

How eligibility links to mortgage affordability

Even if a property is eligible for First Homes, your ability to proceed still depends on standard mortgage considerations.

In practice, you’ll need to align:

• the discounted price and whether it sits within the relevant price cap
• your mortgage structure, including any minimum borrowing requirement
• lender requirements such as affordability, credit assessment, and the way you fund the deposit

A First Homes purchase can be straightforward when the scheme rules and mortgage requirements work together, but it’s worth checking early so you don’t discover a mismatch late in the process.

What to check before viewing specific properties

When you’re assessing whether First Homes could apply to a particular home, it helps to gather the basics up front:

• whether you (and any co-buyer) meet the first-time buyer requirement
• whether your household income is within the relevant limit
• whether the home’s discounted price is within the price cap for that development
• whether you can evidence a local connection to the area
• whether the purchase can be structured with a mortgage that meets any minimum borrowing rule

First Homes vs other first-time buyer options

First Homes is one route that may be available to first-time buyers, but it isn’t the only option.

If First Homes doesn’t fit—because of income, local connection, property eligibility, or the mortgage-related minimum borrowing requirement—other first-time buyer routes may still be worth considering. The most suitable approach depends on the specific home and your overall affordability.

Summary

To be eligible for the First Homes Scheme, you generally need to:

• be a first-time buyer
• meet household income limits
• buy a qualifying new-build home within the price caps after discount
• purchase it as your main residence
• have a local connection to the area
• accept that the discount is intended to be retained for future qualifying buyers
• structure the purchase with a mortgage, typically meeting a minimum borrowing condition (where applicable)

For official guidance, see: https://www.gov.uk/guidance/first-homes