The government’s First Homes policy came into effect on 28  June 2021. The First Homes scheme is designed for local first-time buyers and key workers who want to stay in the communities where they live or work but are struggling to get onto the property ladder. These homes will be sold directly by the developer.

What is the First Homes Scheme?

The First Homes scheme offers eligible first-time buyers a discounted property. The maximum amount First Homes can be sold for is £250,000. This discount remains with the property so that future eligible buyers can benefit from the scheme if the house is re-sold.

Who is eligible?

First Homes must be prioritised for first-time buyers (as defined in Paragraph 6 of schedule 6ZA of the Finance Act 2003 for the purposes of Stamp Duty Relief for first-time buyers) and not be sold to any household with a combined annual income in excess of £80,000.

The eligibility criteria are that a purchaser, or in the case of a joint purchase, all purchasers must:

• be a first time buyer;
• have a combined income not exceeding £80,000 (or £90,000 in Greater London) in the tax year immediately preceding the year of purchase;
• have a mortgage or home purchase plan to fund a minimum of 50% of the discounted purchase price.

As part of section 106 agreements, local authorities can apply eligibility criteria in addition to the national criteria described above. Please refer to the Stevenage First Homes Policy Position Statement below for more information.

You can find more information about affordable home ownership schemes on the Gov.UK website - Affordable Home-ownership Schemes.