Guidance

First Homes Early Delivery Programme: advertising requirements for developers, accessible version

Updated 12 May 2022

Applies to England

1. Advertising guidance

Developers should include the following when advertising First Homes:

• Always use the First Homes logo for use by non-government organisations
• Always include the reference that national Eligibility Criteria conditions will apply, and must state the local eligibility criteria if it applies;
• Always includes the Tagline;
• Always include a link print-only or live website link to:
  • The First Homes Customer Guide (ANNEX B)
  • Government site: ownyourhome.gov.uk/scheme/first-homes

2. Advertising material

• Logo (Please refer to the .pdf version of this guidance to view the logo) This logo must be used by non-government organisations, like our service partners and homebuilders. It consists of our core logo with the house graphic containing our distinctive First Homes logotype. Under this is the message ‘Backed by HM Government’. Both of these elements make up the complete providers’ logo. The logo should not be changed, altered or adapted in any way from the master logos provided.
• Headline criteria: First time buyer, earning less than £80,000 per year (£90,000 in London). Mortgage to cover at least 50% of purchase price. Councils can apply additional criteria such as local connection or key worker.
• Tagline: First Homes is a new scheme designed to help local first time buyers and key workers onto the property ladder, by offering homes at a discount of 30% compared to the market price. The discounts will apply to the homes forever, meaning that generations of new buyers and the local community will continue to benefit every time the property is sold.
• Eligibility Criteria:
  • Purchasers of First Homes must be first-time buyers and must have a household income not exceeding £80,000 and £90,000 in London (or lower if set by the local authority)
  • Post-discount price caps on first sale of the property of £250,000 across England and £420,000 in London (or lower if set by the local authority)
  • A First Home should be the buyers only home and a purchaser will need to use a mortgage or home purchase plan for at least 50% of the purchase price of the home
  • Local connections and/or key worker status is as determined by the relevant Local Authority
• Local Eligibility Criteria:
  • MUST include [relevant Local Authorities Eligibility Criteria]
• Customer Guidance:
  • First Homes Customer Guide
• Own Your Home: First Homes Scheme - Own Your Home

3. Advertising periods

• S106 amendment: We advise the Developer has entered into a S106 amendment with First Homes prescribed clauses with the Local Authority before they commence advertising, so that local eligibility criteria is agreed prior to marketing.
  • This is in line with the funding agreement Schedule 3 Part 1, Conditions Precedent 1.3 the Developer is not able to receive grant funding payment unless the S106 amendment has been agreed with the Local Authority.
• Commencing Plot Specific Marketing 6 Months Prior to Anticipated PC
  • In most instances it is expected that marketing will commence 6 months prior to Practical Completion. The criteria that applies to First Homes buyers can change according to when they buy the property in relation to the marketing start date. The period of marketing according to National criteria is always the 1-6 month period prior to anticipated Practical Completion.
  • If local criteria applies via the First Homes [Supplemental] S106 Agreement, you must market for the first 3 months using both the National & Local Eligibility Criteria and (if no eligible purchaser has been found within that first 3 month period) you can then market thereafter (i.e. months 4-6) using only the National Eligibility Criteria. If no local criteria have been imposed via the First Homes [Supplemental] S106 Agreement, then you market for 6 months using only the national criteria.
• Commencing Plot Specific Marketing 10 Months Prior to Anticipated PC
  • The maximum timescale a Developer should commence Marketing is 10 Months Prior to anticipated Practical Completion. This is set out in Clause 6.2.7 of the First Homes Funding Agreement and allows a customer to reserve a First Homes Plot more than 9 months before the anticipated completion/Practical Completion date
  • If the Developer chooses to begin marketing over 6 months before anticipated Practical Completion, any Local Eligibility Criteria will apply until 3 months before anticipated Practical Completion. If an eligible purchaser cannot be found in this time, the Local Eligibility Criteria will fall away and the National Criteria will apply for the remaining 3 months before anticipated Practical Completion .
• Commencing Site Wide Marketing: On new builds, developers are permitted to start marketing the property as soon as the 3 points specified in clause 6.2.1 of the Funding Agreement have been complied with. There is no limit to how early they can make known that First Homes are being built on a specific site – for example, a new development might note on the onsite billboards that First Homes will be available. In terms of the First Homes scheme, there would be no objection to this. However:
  • Developers should not endeavour to exchange contracts for a specific First Home if there is more than 6 months to go before projected completion. This is because mortgage offers will typically only last for 6 months
  • The period of marketing according to national criteria should not expire before practical completion of the First Home. This requirement is stipulated in the model section 106 clauses. It means that a developer shouldn’t ever request for a First Home to be converted into open market sale before the home has practically completed.
  • The period of marketing according to any local criteria should not expire if there are 3 months or more to go before practical completion. This requirement is also stipulated in the model section 106 clauses. Marketing can of course start later if the developer so chooses.
  • We recommend that the marketing strategy be agreed in detail between the developer and the local authority at an early stage, as part of the s106 negotiation, so that all are clear on the agreed approach. Doing so will add clarity both to the period in which any local eligibility criteria applies, and to the period after which First Homes could potentially be released to the open market.

The Advertising Requirements may be updated by Homes England from time to time, issued to Developers and should always be reflected in Developer advertising and marketing First Homes Phase 2 Pilot