First Homes Scheme Guide

The First Homes Scheme is a government initiative in England that allows eligible first-time buyers to purchase a new-build home at a discount of at least 30% (and up to 50%) below the open market value. The discount is funded by the developer and is permanently attached to the property — meaning it must be passed on to future buyers who also meet the eligibility criteria.

To be eligible, you must: (1) be a first-time buyer; (2) be purchasing the property as your only or main residence; (3) have a household income of no more than £80,000 per year (£90,000 in London); (4) be able to obtain a mortgage for at least 50% of the discounted purchase price. Local authorities can apply additional criteria — such as giving priority to key workers or people with a local connection.

The minimum discount is 30% below the open market value. Local authorities and developers can offer higher discounts — up to 50%. The discount is applied to the purchase price and is permanently attached to the property. When you sell, you must sell at the same percentage discount below the then-current market value.

Yes. After the discount has been applied, the purchase price must not exceed £250,000 (£420,000 in London). So a property with a 30% discount must have an open market value of no more than approximately £357,000 (£600,000 in London) to qualify.

The conveyancing process for a First Homes purchase is similar to a standard new-build purchase, but with additional legal work. Your solicitor must review the First Homes restriction registered on the title, ensure the purchase complies with the scheme rules, and advise you on the implications of the resale restriction. We will also liaise with the developer's solicitors and your mortgage lender.

Yes — most major lenders offer mortgages on First Homes properties. You must be able to obtain a mortgage for at least 50% of the discounted purchase price. Your mortgage lender will need to be satisfied with the First Homes restriction on the title. We act for both you and your lender as part of the conveyancing process.

When you sell, you must sell at the same percentage discount below the then-current open market value. For example, if you bought at a 30% discount, you must sell at a 30% discount. The buyer must also meet the First Homes eligibility criteria. This restriction is registered on the title at Land Registry and is permanent — it applies to all future sales of the property.

No — First Homes properties must be used as your only or main residence. You cannot let the property to tenants. If you need to move, you must sell the property in accordance with the First Homes resale restrictions.

Availability depends on whether local developers are participating in the scheme and whether Cheshire West and Chester Council has approved First Homes developments in the area. We can advise you on the conveyancing process for any First Homes property you are considering purchasing.

SDLT is calculated on the discounted purchase price — not the open market value. As a first-time buyer, you may also benefit from first-time buyer SDLT relief. Your solicitor will calculate your SDLT liability and submit the return to HMRC as part of the conveyancing process.