‘First Homes’ is a government-backed affordable housing scheme to help more people onto the property ladder. Delivery of First Homes has already begun in some areas within Hull. It will significantly increase in the coming years to make First Homes a major form of affordable housing throughout England. Hull City Council plays a critical role in supporting the success of the First Homes scheme. This webpage has been designed in line with the national policy. It aims to provide perspective ‘First Time Buyers’ the information they need about the scheme and the role Hull City Council holds.
First Homes scheme: first-time buyer's guide: Overview - GOV.UK (www.gov.uk)
Introduced in 2021 First Homes is an exciting Government-backed scheme aimed at helping more people onto the property ladder. The Early Delivery Phase 2021 -2023, saw 40 new build homes delivered at various sites across Kingston upon Hull. 18 singular individuals and 22 families in Hull have purchased their own homes through the scheme.
First Homes discount
First Homes are a type of affordable housing that is available for sale at a discounted price. They are considered as discounted market sale housing and meet the criteria for 'affordable housing'. Specifically, First Homes are discounted new build homes which -
- must receive a minimum discount of 30% against the market value
- after the discount has been applied, the first sale must be at a price no higher than £250,000 (or £420,000 in Greater London)
- on their first sale, will have a restriction registered on the title at HM Land Registry to ensure the discount (as a percentage of current market value) and certain other restrictions are passed on at each subsequent title transfer
- can only be sold to a person or persons meeting the First Homes eligibility criteria which include a household income of below £80,000, for all purchasers to be first time buyers and to require a mortgage of at least 50% of the discounted purchase price
These homes are being directly marketed by developers who will also guide prospective purchasers through the application process. There is no need to register on any waiting list.
The discount will apply to that home forever, meaning future first-time buyers will benefit from the scheme too as the property will be sold at 70% of the open market value.
National Policy v Hull City Council First Home Criteria
| First Home Criteria | National Criteria | Hull City Council Criteria |
|---|---|---|
| Open Market Value Discount | 30% to 50% discount can be applied. This can be between 30% and 50% if there is evidence to suggest a higher discount is required locally. |
30% discount applied to open market value First Home properties. |
| Price Cap | £250,000 (after discount). | £250,000 (after discount) in line with the national policy. |
| Income Cap | Households must not earn more than £80,000 a year before tax (£90,000 if the property is in London). This is your income from the previous tax year. | Hull City Council have opted to not have a local income cap and we have chosen to follow the national criteria. |
| Eligibility Criteria | National Criteria | Hull City Council Criteria |
|---|---|---|
| Local Connection | Local Authorities can apply local connection criteria on the sale of the property for a maximum of 3 months from the property being marketed. | Priority is given to individuals with a local connection. |
| Key Worker Priority | Local Authorities can apply key worker priority criteria. | Hull City Council have opted not to include key worker priority. |
| First Time Buyer | All purchasers must be first time buyers. | All purchasers must be first time buyers. |
| Buyers must have a mortgage or home purchase plan covering at least 50% of the discounted purchase value | This requirement must be met. | This requirement must be met. |
Additional national guidance for First Homes can be found on First Homes - GOV.UK (www.gov.uk).