.png)
The First Homes Scheme: Affordable Homes for First-Time Buyers
- social76573
- Mar 25
- 3 min read
If you're a key worker or a first-time buyer struggling to buy a home, the First Homes scheme could help. This government initiative offers new-build homes at a 30-50% discount, making home ownership more affordable.
What You’ll Learn in This Blog:
✔ What the First Homes scheme is
✔ Who qualifies as a key worker
✔ How to apply
✔ How it works
What is the First Homes Scheme?
Launched in 2021, the First Homes scheme helps first-time buyers and key workers purchase new-build homes at a discounted price. The discount stays with the property, ensuring future buyers continue to benefit. The government has pledged to add 10,000 homes to the scheme every year.
Who is Considered a Key Worker?
The scheme is available to first-time buyers in England who are either local or key workers. Key workers include:
✔ Doctors & Nurses
✔ Teachers
✔ Delivery Drivers
✔ Supermarket Staff
✔ Emergency Responders
✔ Armed Forces Personnel
Special Exemptions for Armed Forces & Families
You do NOT have to be a key worker or local if you are:
✔ A serving member of the armed forces
✔ A veteran (within 5 years of leaving service)
✔ A divorced, separated, or widowed spouse of a service member
✔ A widow or widower whose spouse’s death was service-related
Local Council Criteria
Councils are within their rights to prioritise certain people for First Homes. While this will vary by council, you might be prioritised if you're:
✔ Key workers in high-demand jobs
✔ Residents of the local area
✔ Buyers on lower incomes
If you’re buying with someone else, only one of you needs to meet the local council’s criteria. These rules apply for only the first 3 months a home is on sale.
How Does It Work?
Finding a First Homes property is easy! Look for homes advertised by developers or estate agents under this scheme.
✔ Developers offer at least 30% off the market price
✔ Unlike shared ownership, you own 100% of the property
✔ No extra rent payments
✔ Every home is independently valued by a surveyor to confirm the discount
For example, if a home is worth £200,000, you could buy it for £140,000 with a 30% discount. This means:
✔ Lower deposit requirements
(5% of £140,000 = £7,000 instead of £10,000)
✔ Smaller mortgage payments
✔ The discount stays when you sell
Example: If your home increases to £220,000, the next buyer would pay £154,000
Who can use the first homes scheme?
✔ Be a first-time buyer (never owned or inherited a home).
If you're buying with someone else, you'll BOTH need to be a first-time buyers.
✔The property must be your only or main residence.
✔ Earn less than £80,000 (£90,000 in London).
Where you're buying with someone else, your joint income can't exceed £80,000 (or £90,000 if buying in London).
✔ Buy a new-build home or a previously lived-in property originally bought through the scheme under £250,000 (£420,000 in London).
some areas this cap could be even lower, as councils have the power to decide it.
✔ Live or work in the area (or have local ties)
✔ If your application is successful, the mortgage must cover at least half of the purchase price.
(The exact amount will depend on the size of your deposit.)
What Deposit Do You Need?
✔ Most lenders require a 5% deposit.
For example, If you’re buying a £140,000 home, that means you’ll need just £7,000.
Only a limited number of lenders are taking part in First Homes with some lenders even offering 95% mortgages!
Want to see if the First Homes scheme is right for you or explore different home-buying schemes? Get in touch for your FREE appointment, we're here to help!
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. More Financial is a trading name of Opulence Money Limited and is an appointed representative of Mortgage lntelligence Ltd, which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance, and consumer credit mediation activities. Company registered in England & Wales under number 10592352.
Comments