First Homes: you could buy with at least a 30% discount
What is First Homes?
- A Government-backed scheme designed to help first time buyers own their own home in Greater London.
- Under the scheme, homes are offered for sale with a discount of at least 30% of market value.
- Exclusively available on selected new-build homes, up to a maximum price of £420,000 in Greater London (after the discount has been applied). Local authorities may set a lower price cap.
- The First Homes discount and provisions will apply to the future sales of the property. This means the same percentage discount as applied to the original sale will be passed on to the new buyer, who must first have been approved by the local authority as meeting the First Homes Eligibility Criteria. This process will apply every time the property is sold, to help other first time buyers in the future.
- First Homes is subject to availability, status, national and local eligibility, terms and conditions*.
Are you eligible?
- Available to first time buyers only (if the home is being purchased by more than one person, all must be first time buyers).
- All buyers’ joint gross income must not exceed £90,000 per year for First Homes in Greater London.
- Buyers will need to meet local eligibility criteria (if any) set by the local authority, such as a lower joint gross income cap, and/or at least one buyer having a local connection or being a keyworker. A lower income cap level and/or Local connection and keyworker status is as determined by the local authority.
- You must be able to obtain a mortgage (or home purchase plan) for at least 50% of the discounted purchase price.
- A property purchased using First Homes must be the buyers' only/main residence during ownership of the property.
When selling a property purchased using First Homes, the seller will only receive the discounted market value (i.e. 70% of its market value if the First Homes discount was 30%) not full market value, and must only sell to a buyer that meets the First Homes eligibility criteria (including any local authority’s local eligibility criteria in force at that time). The percentage discount cannot change, even if you have made improvements to your home or if market values increase of decrease.
The First Homes scheme: first-time buyer's guide explains in more detail the First Homes scheme including the application process, FAQs in respect of First Homes ownership, restrictions on letting the home and the process for selling. Further information is available at: www.ownyourhome.gov.uk/scheme/first-homes.