Every month you pay rent, that’s money you’ll never get back. The longer you wait, the harder it feels to save for a deposit, while property prices in London keep rising. You’re not just trying to buy a home; you’re trying to avoid a future where homeownership slips further out of reach.

That’s why the First Homes Scheme London is such a big deal. It’s a rare opportunity to get at least a 30% discount on a new-build home. But these homes are limited, and if you don’t act fast, you could miss your chance.

In this guide, we’ll break down everything you need to know: who qualifies, where to find First Homes properties, and how to apply before it’s too late.

What Is the First Homes Scheme?

The First Homes Scheme is a UK government-backed initiative designed to help first-time buyers purchase a home at a minimum 30% discount compared to the market price. In high-demand areas like London, some properties may offer discounts of up to 50%. The goal is to make affordable homeownership possible for those struggling with rising property prices.

Key Benefits:

• Huge Savings – Buy a home at a significantly lower price.
• London Focus – Available in select London boroughs through registered developers.
• Keeps Housing Affordable – If you sell, the same discount applies to the next buyer.

Key Facts About the First Homes Scheme

The First Homes Scheme is a UK government initiative designed to help first-time buyers purchase a home at a significant discount. Here’s what you need to know:

1. Significant Discounts

• 30% to 50% Off Market Value: Eligible first-time buyers can purchase a home with a discount ranging from 30% to 50% off its market value.

2. Eligibility Criteria

• First-Time Buyer Status: You must be purchasing your first home.
• Age Requirement: Applicants must be 18 or older.
• Income Threshold: Annual household income should not exceed £80,000 (£90,000 in London).
• Mortgage Requirement: You need to secure a mortgage for at least 50% of the discounted property’s price.

3. Property Price Caps

• Post-Discount Price: The property’s price after applying the discount must not exceed £250,000 in England or £420,000 in Greater London.

4. Local Authority Provisions

• Additional Criteria: Local councils may set extra eligibility requirements, such as prioritising key workers or local residents.
• Time Frame: These local criteria apply only during the first three months the property is on the market.

5. Application Process

1. Find an Eligible Property: Look for homes advertised under the First Homes Scheme.
2. Mortgage Agreement in Principle: Secure this to demonstrate your borrowing capability.
3. Apply Through Developer or Estate Agent: Complete the necessary application forms.
4. Legal Assistance: Engage a solicitor to handle the conveyancing process.

6. Future Sales

• Maintaining Affordability: When selling, the same discount percentage applies to the new buyer, ensuring the property remains affordable for future first-time buyers.

7. Stamp Duty Land Tax (SDLT)

• Based on Discounted Price: SDLT is calculated on the property’s discounted price, potentially reducing the amount payable.

Who Qualifies for the First Homes Scheme London?

Not everyone is eligible for the scheme. You must meet specific criteria set by the UK government and local councils.

Eligibility Requirements:

• First-Time Buyer – You cannot have owned a property before.
• Household Income Under £90,000 – Your total earnings must not exceed this limit in London.
• Mortgage Requirement – You must take out a mortgage covering at least 50% of the home’s price.
• Local Council Criteria – Some councils prioritise key workers or local residents.

How to Apply for the First Homes Scheme London

Applying for the First Homes Scheme London involves several steps. Here’s what you need to do:

Step 1: Check Available Properties

Find developers and housing associations offering First Homes properties in your preferred London borough. You can start by checking:

• Government housing websites
• Developers like Barratt Homes, Taylor Wimpey, and Persimmon Homes
• Local council listings

Step 2: Confirm Your Eligibility

Each property listing will have specific eligibility rules. Contact the developer or local authority to check if you qualify. 

• Fill out an application with the housing developer or estate agent
• Provide proof of eligibility (income documents, ID, mortgage details)
• Find a conveyancing solicitor on the Law Society or a licensed conveyancer on the Council for Licensed Conveyancers.

Step 3: Secure a Mortgage Agreement in Principle

Since you need a mortgage covering at least 50% of the home’s price, you should get a mortgage agreement in principle before applying. Many banks and lenders offer special products for first-time buyers under government schemes. Check out Money Advice Service’s Money Helper for more information.

Step 4: Complete the Purchase

If your application is approved, you can move forward with the purchase. Your solicitor will handle the legal aspects, and once the contracts are signed, the home is officially yours!

Which London Boroughs Offer First Homes Properties?

Not all London boroughs have First Homes properties available. However, some councils have actively partnered with developers to offer discounted homes.

Boroughs to Check:

• East London – Barking & Dagenham, Tower Hamlets, Newham
• South London – Croydon, Southwark, Lewisham
• West London – Ealing, Hounslow
• North London – Barnet, Enfield

Availability changes frequently, so check with local councils and developers for the latest listings.

First Homes Scheme vs. Other Government Housing Schemes

The First Homes Scheme isn’t the only affordable housing programme in the UK. Here’s how it compares to other options:

If you’re eligible, the First Homes Scheme offers the best discount, making it one of the most attractive options for first-time buyers.

The Long-Term Value and Resale Conditions of First Homes

While the First Homes Scheme offers an affordable way to buy a home, remember that housing is a long-term investment. Take the time to assess the area’s property market trends and future growth potential. If you plan to sell the property in the future, check the local market to make sure you’ll still be able to find a buyer who can take advantage of the discount.

Keep in mind that the discounted price stays with the home even after you sell it. If you buy a home through the scheme, future buyers will also benefit from the same discount. This can make your property harder to sell in the future, but it ensures that homes remain affordable for future first-time buyers.

Don’t Miss Out on Your Chance to Own a Home in London

The First Homes Scheme is highly popular, and properties are in demand. Be proactive by setting up alerts with local developers and estate agents, 

FAQ

How do I qualify as a first home buyer in the UK?

You must be buying your first home, not own any other property, and meet specific income and mortgage eligibility criteria. For the First Homes Scheme, your household income in London must be £90,000 or less.

Can I be a first-time buyer again?

No. Once you’ve owned a home, you no longer qualify as a first-time buyer, even if you’ve sold your previous property.

Can you rent out a first-time buyer house?

If you buy through the First Homes Scheme, you cannot rent out the property because it must be your main residence. Other first-time buyer properties may have different restrictions depending on the mortgage and scheme used.

Do first-time buyers pay stamp duty in the UK?First-time buyers don’t pay Stamp Duty on homes up to £425,000. For properties between £425,000 and £625,000, they pay a reduced rate of 5% on the portion above £425,000.