First Homes Scheme Calculator

Calculate First Homes discounted price (30-50% off). Check if you can afford with income and deposit.

Last updated: April 2026 · Source: GOV.UK — First Homes scheme

£
£
£
£

Your Price (30% off)

£175,000.00

Saving: £75,000.00 vs market value

Mortgage Needed

£157,500.00

Monthly Payment

£875.44

Affordable!

Yes

First Homes: 30-50% discount on new-build homes for first-time buyers. Max price: £250,000 (£420,000 London). Combined household income under £80,000 (£90,000 London). Discount locked in permanently.

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

The First Homes scheme offers first-time buyers in England a minimum 30% discount on new-build homes, with some local authorities offering up to 50% off. The discount is funded by the developer and set through Section 106 planning agreements. After the discount, the home must cost no more than £250,000 (or £420,000 in London).

Eligibility requirements include being a first-time buyer, a household income below £80,000 (£90,000 in London), and securing a mortgage for at least 50% of the discounted price. Local connection and key worker status may be prioritised. The discount is locked into the property title, meaning future sales must also be at the same percentage discount.

This calculator shows the purchase price after the discount, compares it with the market value, estimates your mortgage payments on the reduced price and calculates the stamp duty (first-time buyer relief usually applies). It also models future equity growth based on assumed house price appreciation.

Example: New-build valued at £300,000, 30% discount

  1. Market value: £300,000
  2. First Homes discount (30%): −£90,000
  3. Purchase price: £210,000
  4. Deposit (10%): £21,000
  5. Mortgage needed: £189,000 — monthly repayment at 4.5% over 30 years: approx. £957

Source: GOV.UK — First Homes scheme

Frequently Asked Questions

What does the First Homes Scheme Calculator do?
Calculate First Homes discounted price (30-50% off). Check if you can afford with income and deposit. All calculations are performed in your browser using official UK rates and thresholds.
Is this based on current interest rates?
You can enter any interest rate to model different scenarios. Check the Bank of England base rate and current mortgage deals from lenders for the latest rates.
Should I get professional advice?
This calculator provides estimates for guidance only. For a formal mortgage offer, speak to a mortgage broker or lender who can assess your full circumstances and provide personalised advice.