general

First Homes scheme explained: who qualifies, the discount and the rules when you sell

The First Homes scheme in England: who qualifies, the 30% to 50% discount, the £250,000 and £420,000 price caps and what happens when you sell.

4 min read
Last reviewed 4 November 2026
By Your Property Check team

Part 1 of 7

The short version

General information, not advice. This page reflects what GOV.UK said when we read it on 4 November 2026. Scheme details change, so check GOV.UK before you rely on a figure. The scheme is only available in England.

A First Home is sold at a discount to market value, and the discount stays attached to the home. That second point matters most to anyone who later wants to sell, because it limits who can buy and what price the market will support.

Part 2 of 7

Who can buy a First Home

GOV.UK says you must be 18 or over, a first-time buyer, and able to get a mortgage for at least half the price of the home. The home must be your only or main residence. If you buy with others, all buyers must be first-time buyers and apply together, and your joint income cannot be more than the cap.

Councils can add their own criteria, such as priority for key workers, people who already live in the area or people on lower incomes. GOV.UK says these local criteria apply only for the first 3 months a property is on sale. After that the national criteria apply. Members of the armed forces and certain veterans and family members do not need to meet the key worker or local residence criteria, though they must meet the other tests.

Part 3 of 7

The rules in one table

Test	Rule	Source
Where	England only	GOV.UK: First Homes scheme
Discount	At least 30% below market value; a council can require 40% or 50%	GOV.UK: First Homes guidance
Price cap after discount, first sale	£250,000, or £420,000 in Greater London	GOV.UK: First Homes guidance
Income cap	£80,000 a year before tax, £90,000 in London, from the previous tax year	GOV.UK: First Homes scheme
Buyer	18 or over, first-time buyer, only or main home	GOV.UK: First Homes scheme
Mortgage	Covering at least half the price of the home	GOV.UK: First Homes scheme
Local criteria	First 3 months of marketing, then national criteria	GOV.UK: First Homes guidance

Local areas can set lower price caps with evidence but cannot set them higher, according to the guidance. A council that wants a bigger discount must choose 40% or 50%, and the rate applies across its plan area.

Part 4 of 7

How the discount works

The discount is taken off the market value, and the price you pay is the discounted price. If a home is valued at £300,000 and the area requires the minimum 30% discount, the discounted price is £210,000, which sits under the £250,000 cap. This is arithmetic on the GOV.UK percentages, not a quote for any real home. The market value comes from a valuation, so ask the developer or council for it in writing.

Stamp duty is a separate question. GOV.UK uses the Stamp Duty Relief definition of a first-time buyer for the First Homes tests. Our stamp duty calculator shows the tax for England on the price you will actually pay, and our first-time buyer stamp duty guide explains the relief.

Part 5 of 7

What happens when you sell

This is the part many owners miss. The GOV.UK guidance says:

National eligibility criteria apply to every future sale, so your buyer must also qualify.
The same percentage discount carries over to each resale, so a 30% discount stays 30%.
A title restriction means a sale needs a certificate from the local authority confirming the criteria were met.
The £250,000 and £420,000 price caps do not apply to resales.

In practice that means a smaller pool of buyers, and a sale price set as a discount off the market value at the time of resale. It is not the price you paid plus growth. Start the process early and ask your conveyancer about the local authority certificate before you market the home.

There are two exits. GOV.UK says a lender can sell on the open market if it enforces its security, with the council reimbursed up to the discount value. An owner can also sell on the open market after at least 6 months of marketing, paying the council the discount value. Ask a solicitor before relying on either route.

Part 6 of 7

Comparing it with other schemes

A First Home is bought outright with a mortgage, so it is closer to ordinary ownership than shared ownership. If you are weighing options, read how shared ownership works and how to sell. Check whether the home is freehold or leasehold, as that affects ground rent, which we explain in ground rent and peppercorn rent.

Part 7 of 7

Before you commit

Ask for the discount percentage, the market value used, the restriction wording and the council's resale process in writing. Confirm your income against the cap for the previous tax year. This page is general information, not advice, so speak to a conveyancer who knows the scheme.

Our take

Weigh the resale rule as carefully as the discount

The headline is a discount of at least 30%, but the same discount percentage passes to every later buyer, so you are agreeing to it for your own sale too. The price cap after discount is £250,000, or £420,000 in Greater London, and the income cap applies on top. Our view: read the resale terms before you reserve.

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Our opinion, drawn from the facts on this page: not advice and not a forecast. We earn from OfferCheck reports and from introducing sellers to cash buyers, so weigh it with that in mind (see our disclosure). We are not authorised or regulated by the FCA.

Questions, answered

Frequently asked questions

Who can buy a First Home?

According to GOV.UK, you must be 18 or over, a first-time buyer, able to get a mortgage for at least half the price, and buying an only or main home in England. Your income must not exceed £80,000, or £90,000 in London.

How big is the First Homes discount?

GOV.UK says the discount must be at least 30% against market value. A local authority can require 40% or 50% if it shows a need, and the chosen rate applies across the plan area.

Can you sell a First Home?

Yes. GOV.UK says the same percentage discount carries over to each resale and the buyer must meet national criteria. A title restriction means a local authority certificate is needed. After at least 6 months of marketing an owner can sell on the open market and pay the council the discount value.

What are the First Homes price caps?

After the discount, the first sale price cannot exceed £250,000, or £420,000 in Greater London, per GOV.UK guidance. Local areas can set lower caps but not higher ones. The caps do not apply to resales.

Is the First Homes scheme available in Scotland or Wales?

No. GOV.UK says the scheme is only available in England.

Where this comes from

Sources

Last reviewed 4 November 2026 by the Your Property Check team. This page is general information, not legal, tax or financial advice. For your own situation, speak to a conveyancing solicitor or another qualified professional.