First Homes is a government scheme to help more people on to the property ladder.

They are newly built properties for first-time buyers and offered at a discount of at least 30% compared to prices of equivalent properties on the open market. And after the discount should cost no more than £250,000 on the first sale.

The discount applies to the property forever, although the £250,000 cap does not apply to resale. This means the same percentage discount will be passed on to the new buyer every time the property is sold. The seller of the property will only receive the discounted amount never the 100% market value.

View the eligibility criteria for First Homes.

The discount

The discounts will be funded by the developers for the main rollout of the scheme. Developers are usually asked to contribute a number of affordable homes as part of their planning agreement with the local council. First Homes are a type of affordable housing, and form part of this contribution.

The government is also supporting some early delivery programmes in which it is funding the discounts directly.

The discount is noted on the title deed of the property (as a ‘restriction on title’) at the Land Registry.  The legal agreement specifies the percentage discount that was applied on the initial sale, which then needs to be applied for all future sales.

Once the property is yours

Home improvements

Your First Home belongs to you. You can decorate and update it as you wish, in keeping with planning and building regulations, any leasehold restrictions that apply, and the terms of your mortgage.

Letting the property

You can let your First Home for a period of up to 2 years provided you tell us, and subject to the terms of your mortgage agreement. This is allowed to offer owners the ability to respond to changes in their circumstances, such as unexpected life events.

The 2-year period is in aggregate. It does not have to be continuous, and does not have to be to the same tenant. The 2-year period is allowed for each span of ownership: if the First Home is resold, or inherited, the 2-year period resets.

You may be able to let out your First Home for longer than 2 years in exceptional circumstances. You will need to get permission from us and may also need agreement from your mortgage lender.


Lodgers are permitted if the home remains your only or main residence. This is subject to the terms of your mortgage agreement.