--- title: "First Homes Scheme 2026 — Discount, Eligibility & Mortgage Rules | First Rung Now" description: "First Homes scheme UK 2026: how the 30%–50% new-build discount works, eligibility, income caps, mortgages, deposits and resale rules for first-time buyers." lang: en-GB json-ld: | [ { "@context": "https://schema.org", "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com", "logo": { "@type": "ImageObject", "url": "https://firstrungnow.com/logo-512.png", "width": 512, "height": 512 }, "description": "Independent UK mortgage education and broker matching service.", "address": { "@type": "PostalAddress", "addressCountry": "GB" } }, { "@context": "https://schema.org", "@type": "WebSite", "name": "First Rung Now", "url": "https://firstrungnow.com" }, { "@context": "https://schema.org", "@type": "Article", "headline": "First Homes Scheme", "description": "First Homes scheme UK 2026: how the 30%–50% new-build discount works, eligibility, income caps, mortgages, deposits and resale rules for first-time buyers.", "author": { "@type": "Organization", "name": "First Rung Now" }, "publisher": { "@type": "Organization", "name": "First Rung Now", "url": "https://firstrungnow.com" }, "mainEntityOfPage": "https://firstrungnow.com/first-homes-scheme", "datePublished": "2026-06-15", "dateModified": "2026-06-15", "inLanguage": "en-GB" }, { "@context": "https://schema.org", "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://firstrungnow.com/" }, { "@type": "ListItem", "position": 2, "name": "Mortgage Guides", "item": "https://firstrungnow.com/mortgage-guides" }, { "@type": "ListItem", "position": 3, "name": "First Homes Scheme", "item": "https://firstrungnow.com/first-homes-scheme" } ] }, { "@context": "https://schema.org", "@type": "FAQPage", "mainEntity": [ { "@type": "Question", "name": "What is the First Homes scheme?", "acceptedAnswer": { "@type": "Answer", "text": "A government-backed English scheme where selected new-build homes are sold at a 30%–50% discount to first-time buyers with priority for keyworkers, armed forces personnel and people with a local connection. The discount is a covenant on the property — future sales must also be at the same discount to an eligible buyer." } }, { "@type": "Question", "name": "How much can I earn and still qualify for First Homes?", "acceptedAnswer": { "@type": "Answer", "text": "Household income cap is £80,000 outside London and £90,000 in Greater London. Household means all buyers named on the mortgage combined. Bonuses and overtime count towards the income figure." } }, { "@type": "Question", "name": "What's the maximum property price for First Homes?", "acceptedAnswer": { "@type": "Answer", "text": "After the discount is applied: £250,000 outside London, £420,000 in Greater London. So a home listed at £400,000 with a 30% discount comes in at £280,000 — above the cap outside London so ineligible there, but eligible in London." } }, { "@type": "Question", "name": "Do I have to use the discount if I qualify for a smaller one?", "acceptedAnswer": { "@type": "Answer", "text": "The discount percentage is set per development, not per buyer. Most First Homes are marketed at 30% discount; local councils can require up to 50%. You don't choose — you take the discount attached to the property." } }, { "@type": "Question", "name": "What deposit do I need for a First Homes purchase?", "acceptedAnswer": { "@type": "Answer", "text": "Minimum 5% of the discounted price. On a £180k discounted home (from £250k list) that's a £9,000 deposit. You must also take a mortgage covering at least 50% of the discounted price — so you can't buy the whole thing in cash." } }, { "@type": "Question", "name": "Can I rent out a First Homes property later?", "acceptedAnswer": { "@type": "Answer", "text": "No. First Homes must be your primary residence. Letting the property in full breaches the scheme covenant and can trigger action by the local authority. Lodgers (a paying housemate while you continue to live there) are usually permitted — check the specific S106 agreement." } } ] } ] --- [Skip to content](#main) [London 020 8088 2997 ](tel:02080882997)[National 0333 567 1185 ](tel:03335671185) [![First Rung Now](/assets/logo-mark-CNo3p3DP.png) First Rung Now UK Mortgage Guides ](/) - Mortgages - Remortgages - Buy To Let - Bad Credit - Calculators - Guides - [Find a Broker](/find-a-mortgage-broker) - [About](/about) [London 020 8088 2997 ](tel:02080882997)[National 0333 567 1185 ](tel:03335671185) [Speak to a Vetted Broker](/find-a-mortgage-broker) 1. [Home](/) 2. [Mortgage Guides](/mortgage-guides) 3. First Homes Scheme UK Mortgage Guide # First Homes Scheme 2026: 30%–50% Discount Explained for First-Time Buyers The First Homes scheme is the English Government's flagship first-time buyer support: newly-built homes sold to local FTBs, keyworkers and forces families at a discount of 30% to 50% off market value. The discount stays with the property forever, meaning even 20 years later when you sell, the next FTB gets the same benefit. This is a genuinely valuable scheme — but it's tightly rationed, geographically uneven, and comes with future-sale restrictions that need to be understood before you commit. First Rung Now Editorial Updated 15 June 2026 7 min read On this page 1. [Key takeaways](#key-takeaways) 2. [How First Homes works in practice](#how-first-homes-works-in-practice) 3. [Example transaction](#example-transaction) 4. [What happens when the buyer eventually sells?](#what-happens-when-the-buyer-eventually-sells) 5. [Who counts as eligible?](#who-counts-as-eligible) 6. [Speak with a vetted mortgage broker about First Homes scheme mortgages and eligibility](#speak-with-a-vetted-mortgage-broker-about-first-homes-scheme-mortgages-and-eligibility) 7. [Mortgages for First Homes purchases](#mortgages-for-first-homes-purchases) 8. [Deposit maths](#deposit-maths) 9. [Applying for a First Homes property](#applying-for-a-first-homes-property) 10. [Selling a First Homes property later](#selling-a-first-homes-property-later) 11. [Pros](#pros) 12. [Cons](#cons) 13. [First Homes vs Shared Ownership vs Help to Buy Wales](#first-homes-vs-shared-ownership-vs-help-to-buy-wales) 14. [Frequently asked questions](#frequently-asked-questions) 15. [What is the First Homes scheme?](#what-is-the-first-homes-scheme) 16. [How much can I earn and still qualify for First Homes?](#how-much-can-i-earn-and-still-qualify-for-first-homes) 17. [What's the maximum property price for First Homes?](#whats-the-maximum-property-price-for-first-homes) 18. [Do I have to use the discount if I qualify for a smaller one?](#do-i-have-to-use-the-discount-if-i-qualify-for-a-smaller-one) 19. [What deposit do I need for a First Homes purchase?](#what-deposit-do-i-need-for-a-first-homes-purchase) 20. [Can I rent out a First Homes property later?](#can-i-rent-out-a-first-homes-property-later) 21. [Related guides](#related-guides) 22. [All First-Time Buyer Schemes](#all-first-time-buyer-schemes) 23. [Shared Ownership for FTBs](#shared-ownership-for-ftbs) 24. [Lifetime ISA for FTBs](#lifetime-isa-for-ftbs) 25. [First-Time Buyer Guide UK](#first-time-buyer-guide-uk) 26. [First-Time Buyer Stamp Duty](#first-time-buyer-stamp-duty) ### Bad credit — related reads Specialist lenders for adverse-credit borrowers. - [Bad credit mortgage checker Place your situation on the lender severity scale and see what a specialist will accept. ](/bad-credit-mortgage-checker) - [Bad credit second mortgage Secured second charges as an alternative to remortgaging when credit has slipped. ](/bad-credit-second-mortgage) - [Bad credit with a large deposit How a 25%+ deposit unlocks rates adverse-credit borrowers thought were closed. ](/mortgage-with-bad-credit-but-large-deposit) - [Contractor mortgages with bad credit Day-rate and limited-company contractors: which specialist lenders will look at you. ](/mortgages-for-contractors-with-bad-credit) - [Poor credit mortgage lenders The specialist UK lenders most willing to price recent adverse credit. ](/poor-credit-mortgage-lenders) Explore the hubs [Mortgages explained](/mortgages)[Remortgages](/remortgages)[Buy-to-let mortgages](/buy-to-let)[Bad credit mortgages](/bad-credit-mortgages)[Mortgage calculators](/mortgage-calculators)[All mortgage guides](/mortgage-guides)[Find a mortgage broker](/find-a-mortgage-broker) ## Key takeaways - 30% (or up to 50%) discount off market value on selected new-builds. - Household income cap £80k (£90k London); price cap after discount £250k (£420k London). - Deposit minimum 5% of discounted price; mortgage must cover ≥50%. - Priority to keyworkers, armed forces, and local-connection applicants. - Discount stays with the property — restricts future resale price. ## How First Homes works in practice Want a vetted broker to help with How First Homes works in practice? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) A housing developer building a new estate in England is now required, under most planning permissions granted from 2021 onwards, to sell a portion of the new homes as "First Homes" — discounted to at least 30% below market value. Local councils can push the discount to 40% or 50% if local house prices justify it. The developer sells the home to the first eligible FTB at the discounted price. That's the entire transaction — no equity loan, no rent, no future clawback of the discount to the government. ### Example transaction A 2-bed apartment in a Bristol new-build valued at £280,000 open-market. First Homes discount at 30% = £84,000. Sold to eligible FTB at £196,000. Buyer needs 5% deposit (£9,800), takes a 95% LTV mortgage of £186,200. Stamp duty: £0 (below FTB threshold). ### What happens when the buyer eventually sells? The covenant on the property (registered on the title) requires the next sale to also be at 30% below the future open-market value, to another eligible FTB. So if that Bristol flat rises to £340,000 in 10 years, the current owner can only sell it for £238,000 to a First Homes-eligible buyer. That's fine — you're not stripped of price growth, you just don't get to sell into the full open market. ## Who counts as eligible? Related · keep reading - [Bad credit mortgage checker Place your situation on the lender severity scale and see what a specialist will accept. ](/bad-credit-mortgage-checker) - [Bad credit second mortgage Secured second charges as an alternative to remortgaging when credit has slipped. ](/bad-credit-second-mortgage) Browse the full hub: [All mortgage guides](/mortgage-guides) Want a vetted broker to help with Who counts as eligible?? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) - Aged 18 or over. - First-time buyer (in the strict SDLT sense — never owned any residential property, anywhere). - Household income (all buyers combined) below £80,000 (£90,000 Greater London). - Buying as your primary residence. - Using a mortgage covering at least 50% of the discounted price. Local councils can add priority (not additional exclusion) for: - **Keyworkers:** NHS, teachers, police, fire, prison officers, MoD civilians, social care workers. - **Armed forces:** Serving personnel; recently discharged; bereaved spouses. - **Local connection:** Lived in the local authority area for 2+ years, or work locally, or immediate family living locally. Vetted UK Broker Match ### Speak with a vetted mortgage broker about First Homes scheme mortgages and eligibility Free, no-obligation introduction to an FCA-regulated adviser with experience in your specific scenario. We've done the due diligence so you don't have to. - FCA-regulated only - Typical reply in 1 working day - No upfront fees [Match me with a broker](/find-a-mortgage-broker) ## Mortgages for First Homes purchases Want a vetted broker to help with Mortgages for First Homes purchases? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) A shortlist of UK lenders operate specifically on the First Homes panel: - Halifax - Nationwide - Barclays - NatWest - Leeds Building Society - Newcastle Building Society - Skipton Building Society Not every lender operates in every region — Leeds and Newcastle BS tend to focus on northern developments; Nationwide and Halifax cover UK-wide. Rates track standard 95% LTV pricing (typically 5.10%–5.65% on a 5-year fix in 2026); there is no First Homes rate premium. ## Deposit maths Related · keep reading - [Bad credit with a large deposit How a 25%+ deposit unlocks rates adverse-credit borrowers thought were closed. ](/mortgage-with-bad-credit-but-large-deposit) - [Contractor mortgages with bad credit Day-rate and limited-company contractors: which specialist lenders will look at you. ](/mortgages-for-contractors-with-bad-credit) Browse the full hub: [All mortgage guides](/mortgage-guides) Want a vetted broker to help with Deposit maths? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Because the property is discounted, the cash deposit needed is smaller than for an open-market purchase of the same home. Market value 30% discount price 5% deposit 10% deposit £180,000 £126,000 £6,300 £12,600 £220,000 £154,000 £7,700 £15,400 £280,000 £196,000 £9,800 £19,600 £340,000 £238,000 £11,900 £23,800 £420,000 £294,000 £14,700 £29,400 ## Applying for a First Homes property Want a vetted broker to help with Applying for a First Homes property? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) 1. **Find eligible developments:** Contact your local council, or check Rightmove/Zoopla using the "First Homes" filter. Not every area has active First Homes stock. 2. **Register interest with the developer.** They'll assess your eligibility against the local S106 planning agreement. 3. **Complete a First Homes eligibility questionnaire.** The local authority (or their appointed agent) verifies your FTB status, income, and any priority criteria. 4. **Receive an Authority to Proceed (ATP).** This is your green light to reserve the property. 5. **Reserve the property and apply for a mortgage.** Reservation fees typically £500–£1,000, refundable if you can't complete for reasons outside your control. 6. **Conveyancing and completion.** Standard from here — with the added S106 covenant registered against your title. ## Selling a First Homes property later Related · keep reading - [Poor credit mortgage lenders The specialist UK lenders most willing to price recent adverse credit. ](/poor-credit-mortgage-lenders) - [MIP with bad credit Getting a credible MIP when your file shows defaults, CCJs or missed payments. ](/mortgage-in-principle-bad-credit) Browse the full hub: [All mortgage guides](/mortgage-guides) Want a vetted broker to help with Selling a First Homes property later? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) When you decide to sell, the process differs from a normal sale: - The property must be sold at the same percentage discount (30%, 40% or 50%) to a First Homes-eligible buyer. - The local authority is given first refusal for a set period (typically 8 weeks) to nominate an eligible buyer from their list. - After that period expires without a nomination, you can market to any eligible buyer through an estate agent. - If after a further period (typically 6 months) no eligible buyer has been found, the discount can be released and the property sold on the open market at full market value. ### Pros - Massive up-front price advantage — 30%–50% below market. - Smaller deposit in cash terms for the same physical property. - Stamp duty typically £0 due to discounted price falling below FTB threshold. - New-build warranty (NHBC or equivalent) for 10 years. - Priority for keyworkers and forces personnel. ### Cons - You benefit from house price growth but can't sell into the open market at full value. - Availability is patchy — some counties have plentiful stock, others have almost none. - Reservation processes can be slow (council eligibility checks add weeks). - New-build market values sometimes debated — check comparable resale prices. - Cannot let the property (must be primary residence). ## First Homes vs Shared Ownership vs Help to Buy Wales Want a vetted broker to help with First Homes vs Shared Ownership vs Help to Buy Wales? Free FCA-regulated introduction. We carefully check the broker matches your scenario — no pressure, no upfront fees. [Match me with a broker](/find-a-mortgage-broker) Feature First Homes Shared Ownership HTB Wales Discount / support 30%–50% off Buy 25%–75% share 20% equity loan Ongoing costs beyond mortgage None Rent on unowned share + service charge None (interest-free 5y then interest applies) Discount / support retained on sale Yes (perpetual) Yes (until staircased to 100%) No — repaid on sale Available in England England mainly Wales only ## Frequently asked questions ### What is the First Homes scheme? ### How much can I earn and still qualify for First Homes? ### What's the maximum property price for First Homes? ### Do I have to use the discount if I qualify for a smaller one? ### What deposit do I need for a First Homes purchase? ### Can I rent out a First Homes property later? ## Related guides [ ### All First-Time Buyer Schemes First Homes, Shared Ownership, LISA and more compared. Read guide ](/first-time-buyer-schemes-uk)[ ### Shared Ownership for FTBs Start with a £2k–£8k deposit. Read guide ](/shared-ownership-first-time-buyer)[ ### Lifetime ISA for FTBs Layer LISA bonus on a First Homes deposit. Read guide ](/lifetime-isa-first-time-buyer)[ ### First-Time Buyer Guide UK Complete step-by-step FTB journey. Read guide ](/first-time-buyer-guide-uk)[ ### First-Time Buyer Stamp Duty Usually £0 on First Homes purchases. Read guide ](/first-time-buyer-stamp-duty) First-Time Buyer Match ### Get matched with a first-time buyer mortgage specialist Free, no-obligation introduction to an FCA-regulated broker who works with first-time buyers every day — whatever your stage, deposit or credit profile. - FCA-regulated brokers only - Typical reply in 1 working day - No upfront fees — your data goes to one broker only Full name Email Phone Postcode Where are you in your journey? Select your stage… Just researching Saving my deposit Ready to get a mortgage in principle Have an MIP, viewing properties Had an offer accepted Anything else? 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