First Homes scheme: first-time buyer's guide

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Selling the property

You can usually only sell the property to someone who is eligible to buy a First Home.

You must give them the same percentage discount that you got, based on the home’s market value at the time of sale.

How to sell

Follow these steps:

  1. Tell your local council that you want to sell.

  2. Find an estate agent to sell your property under the First Homes scheme.

  3. Get the property valued by a surveyor who’s registered with the Royal Institution of Chartered Surveyors (RICS).

The amount the surveyor values it for minus the percentage discount you originally got is what you can sell for. You cannot sell the property for more but you can choose to sell it for less.

Example

You originally got a 30% discount.

A RICS surveyor values your property at £200,000. You must take off a 30% discount (£60,000).

You can sell for up to £140,000.

Your buyer will need to meet First Homes eligibility criteria, including any local criteria. Once your property has been on the market for more than 3 months, your buyer will no longer have to meet local criteria.

Selling your property on the open market

You can ask your local council for permission to sell your property at the full market price to any buyer if either:

  • you’ve tried unsuccessfully to sell your property as a First Home for 6 months or more
  • selling it as a First Home will cause you severe difficulties, such as bankruptcy

The council can:

  • agree to let you sell it on the open market
  • offer to buy your home at the discounted price
  • ask you to continue trying to sell for a further 6 months - if you still cannot sell it after this time, the council must let you sell it on the open market

If the council agrees to selling on the open market

You’ll need to return the percentage discount to the local council. This means giving the council the same percentage of the sale price as the percentage taken off when you bought your home.

Example

You buy a First Homes property worth £250,000 for £175,000 after getting a 30% discount.

You later sell it on the open market for £300,000.

You must return to the council 30% of the money you sold the home for, which is £90,000.

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