If you’re trying to buy your first home in the UK, it can feel like the dream’s getting further out of reach, with house prices climbing and mortgage rules getting stricter. But there’s good news. The First Homes Scheme could be your affordable key to getting on the property ladder, with at least 30% off the price of a new build home. At Oportfolio Mortgages, we help buyers in London and across the UK understand and access this game-changing government scheme.
What is the First Homes Scheme?
The First Homes Scheme is a government-backed initiative designed to help first-time buyers buy a home in their local area at a significantly reduced price. Under the scheme, selected new build properties are sold with a minimum 30% discount off the market value, and you own the property outright, with no rent to pay. Unlike Shared Ownership, where you buy a share and pay rent on the rest, the First Homes Scheme gives you full ownership from day one.
How Much Can I Save?
The discount is at least 30%, but some local authorities may require developers to offer more. Up to 50% in certain cases. Here’s how it works:
The discount applies to the independently assessed market value of the property.
Maximum post-discount price:
- £250,000 in most areas of England
- £420,000 in London
Local councils can set lower limits
Example:
A property valued at £300,000 with a 30% discount = £210,000 purchase price
Who is Eligible?
To qualify for the First Homes Scheme, you must:
- Be a first-time buyer
- Be purchasing your main residence
- Meet local authority criteria (e.g., income caps or key worker status)
- Be able to arrange a mortgage that covers at least 50% of the discounted price
How Do I Find a First Home?
Start by looking at new builds listed by developers or estate agents that are advertised under the First Homes Scheme. These properties are typically labelled clearly. You can also buy a resale First Home from someone who previously bought through the scheme, but the same rules and discounts apply.
How to Apply
Once you’ve found a property:
Inform the developer or estate agent that you want to buy under the First Homes Scheme. They’ll check your eligibility and submit an application to the local council on your behalf.
You’ll need to provide:
- Your conveyancer’s contact details
- A reservation fee (refunded if your application is denied)
The council reviews and approves your eligibility. Once approved, you receive a First Homes Eligibility Certificate.
How to Get a Mortgage
To secure your First Home, you’ll need a mortgage that covers at least 50% of the purchase price. At Oportfolio Mortgages, our advisers are experts in First Homes applications. We help you:
- Understand your affordability
- Find lenders who accept First Homes applications
- Guide you through the paperwork
- Speed up your mortgage offer
Speak to a mortgage adviser today
Can I Make Changes to the Property?
Yes. You can decorate and improve your home just like any other homeowner. However, when it comes to selling or letting, you must follow the First Homes rules:
- You must sell to another eligible First Homes buyer
- You must apply the same discount percentage you received
- Letting is limited to no more than 2 years, unless approved by the council
Selling a First Home
If you decide to sell:
- Contact your local council
- Get your property independently valued
- Apply the same discount % to the new sale price
If the market value is £200,000 and your original discount was 30%, the maximum resale price is £140,000. If you can’t sell within 6 months, you may be allowed to sell on the open market, but you must repay the discount to the council.
Need Help With Buying Your First Property?
If you’re a first-time buyer in 2025, especially in pricey spots like London and the surrounding boroughs, the First Homes Scheme could be one of the best ways to get on the property ladder. With help from the government, discounts from developers, and the right mortgage advice, owning your first place might be easier (and cheaper) than you imagined.
Think You’re Ready to Take the First Step?
Contact Oportfolio Mortgages today for a free consultation with a First Homes specialist. We’ll help you find a property, secure a mortgage, and navigate the application process with ease. Based in Putney, helping first-time buyers across Wandsworth, Fulham, and Greater London.
