First Time Home Buyers
First Homes: new-build homes sold at a discount to local first-time buyers
When it comes to buying your first home there can be a lot to understand and it could be one of the biggest financial investments you make in your lifetime. It is harder than ever to get onto the property ladder but with the help of the 'First Homes Initiative' scheme it could be a possibility in your near future! Below we cover the key highlights of the scheme.
The First Homes Initiative
First Homes are new-build homes in England sold to eligible first-time buyers at a discount of at least 30% below market value. Where a council can show there is a local need, the minimum discount can be 40% or 50%. Since December 2024, councils no longer have to include a set share of First Homes in new developments, so availability depends on your area.
Supporting Local Communities and People
An important aspect of this initiative is the benefit that it will have on local communities for years to come. The discount given on these first home new builds will be passed on with the sale of the property for future first time buyers that are looking to buy a property in their local area.
"The scheme will support local people who struggle to afford market prices in their area, but want to stay in the communities where they live and work." - Ministry of Housing.
First Time Buyers Only
The First Homes initiative is the latest scheme to tackle the exceeding challenges people face to buy a house and get onto the property ladder. It is for first-time buyers only. Your household income must be no more than £80,000 (or £90,000 in Greater London), and you must use a mortgage for at least half of the price. Local councils will also be able to bring in their own requirements such as prioritising local people or key workers.
Lower Price Caps
After the discount, the price must be no more than £250,000 (or £420,000 in Greater London). Councils can make a case to further lower these price caps.
Not for Investment
First Homes cannot be bought as an investment. These homes will have measures that prevent people buying them for investment purposes and those that can afford to buy a first home without a mortgage will not be eligible for the First Home Initiative.
Mortgage Lenders
Some lenders offer mortgages for First Homes. Lender criteria vary, so we will check which lenders could suit you.
