The First Homes Scheme, launched in June 2021, aims to address these concerns by offering a minimum 30% reduction in the price of properties included in the program, with discounts potentially reaching 50% in certain areas. But what exactly is the First Homes Scheme, and how does it work?

What is the First Homes Scheme?

The First Homes Scheme is a government initiative designed to help local first-time buyers and key workers gain access to the property ladder. The program offers a minimum 30% discount on the price of eligible properties, with potential discounts of up to 50% in certain areas. This means that eligible buyers could purchase a property for significantly less than its market value.

The discount is attached to the property and remains in place whenever the property is sold, making it a benefit for future generations of buyers and the local community. The scheme is designed to ensure that properties remain affordable for local residents and key workers, even as property values increase over time.

Who is eligible?

To be eligible for the First Homes Scheme, buyers must be first-time purchasers with a maximum household income of £80,000, or £90,000 in London (or lower if set by the local authority). Local authorities have the power to prioritise local residents and key workers, such as NHS workers, teachers, and emergency service personnel.

Buyers must also be at least 18 years old and able to get a mortgage for at least half the price of the home. This means that buyers will need to have some savings or other assets to contribute towards the purchase of the property.

Source: JLL Research – 03 March 2023

Buying Your First Home? Discover the Benefits of the First Homes Scheme