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First Home Guidance
What are First Homes?
- First Homes are newly built properties for first-time buyers.
- They are offered at a discount of at least 30% compared to prices of equivalent
properties on the open market. Local authorities can choose to set deeper discounts of
40% or 50%.
- The discount will apply to all future sales of the First Home. This means the same
percentage discount as applied to the original sale will be passed on to the new buyer
every time the property is sold and the seller of the First Home will only receive the
discounted amount, not the full market value
What type of properties are First Homes?
- First Homes are properties suitable for first-time buyers.
- First Homes are of the same type and quality, and meet the same standards, as other
properties in the same development. First Homes will look exactly the same as homes
sold normally on the open market.
- The maximum price of a First Home, after the discount has been applied, will be
£250,000 (£420,000 in London). Local authorities are able to set lower price caps as part
of local policy. In subsequent sales the price will reflect the market value minus the
percentage discount.
Who can buy First Homes?
- All purchasers must be first-time buyers.
- Purchasers will need to comply with any local connections restrictions, or key worker
restrictions, set by the local authority. These criteria are designed to prioritise local
people or people with particular priority occupations. Some buyers may be exempt
(details below).
- Any local connections or key worker criteria will apply for the first 3 months once the First
Home is offered for sale. After the first 3 months have come to an end, the local
connections or key worker restrictions will fall away and the property will be available to
first-time buyers nationwide.
- To be eligible for a First Home, your household’s income must be no more than £80,000
in England or £90,000 in London. For the first 3 months of marketing, local authorities
will be able to set lower income caps. If the home is not sold within those 3 months, the
local caps fall away and the national caps will apply.
- Buyers will need a mortgage covering at least 50% of the price of the First Home (after
the discount is applied).
- These criteria apply to all future sales of each First Home.
How can I use my First Home?
- Your First Home belongs to you. You can decorate and update your First Home as you
wish, in keeping with planning and building regulations, any leasehold restrictions that
apply, and the terms of your mortgage.
- Your First Home must be your only or main residential property for the duration of your
First Home ownership. You are allowed to let out the First Home for up to 2 years in
total, and in some exceptional circumstances, the local authority may approve an
extension to this period. Approval from your mortgage lender is needed to let out the First
Home for any period of time.
- Lodgers are permitted, as long as the home remains your only or main residence.
- Should you wish to move home, you can sell your First Home to another eligible buyer.
The percentage discount that applied when you bought the First Home would also apply
on the sale price. The percentage discount is fixed and cannot change, even if you have
made improvements to your home.