First Homes discount calculator

How the First Homes calculation works

First Homes are new homes in England sold to first-time buyers at a fixed percentage below their market value. The calculator takes the full market value, set by an independent valuer, and takes off the discount to give the price paid. It then compares that price with the national price cap, works out the smallest mortgage allowed and, if a future value is entered, shows the most a later buyer would pay with the same discount applied.

A worked example: a home valued at £300,000 with a 30% discount costs £300,000 x 0.7 = £210,000. Outside London the cap after the discount is £250,000, so this price is within it. The mortgage must cover at least half the discounted price, so at least £105,000. If the home is later valued at £320,000, the most a future buyer would pay is £320,000 x 0.7 = £224,000.

A second example shows the cap at work: a £400,000 home at 30% off costs £280,000, which is £30,000 over the £250,000 cap outside London. In London the cap is £420,000, so a £550,000 home at 30% off, costing £385,000, would be within it, with a minimum mortgage of £192,500.

What changes the result

The discount set by the council

The planning guidance makes 30% the national minimum. A council can require 40% or 50% across its area if it shows the need, and developers can offer more. A bigger discount lowers the price, the minimum mortgage and every future resale price in the same proportion.

London or elsewhere

The cap after the discount is £250,000 outside London and £420,000 in London, and the household income cap is £80,000, or £90,000 in London. A council can set a lower price cap for its area, so the national figure is the highest possible.

The valuation

Every figure flows from the market value. The planning guidance says the home must be valued by an independent registered valuer following RICS guidance, and the same approach is used when it is sold again. GOV.UK adds that a lender's lower valuation can in effect limit the price.

Local criteria

Councils can give priority to groups such as key workers or local residents, but GOV.UK says those local criteria only apply for the first 3 months a property is on sale. The national rules, including being a first-time buyer and the income cap, always apply.

Selling a First Home later

The discount is written into the title, so it passes to every future buyer. When the home is sold, a RICS registered surveyor values it and the original percentage comes off; that is the most it can be sold for, though it can be sold for less. GOV.UK's example is a £200,000 valuation with a 30% discount, giving a maximum price of £140,000. The council must be told about the sale. If the home has not sold as a First Home after 6 months, the council can allow a sale on the open market, and the same percentage of that sale price is then paid to the council.

Common mistakes and tips

• Treating the cap as a target. The cap is the most a First Home can cost after the discount, and the council can set a lower one.
• Forgetting the discount at resale. The home will always sell for less than its full value, so price growth is shared with the next buyer in the same proportion.
• Assuming eligibility. Being under the income cap does not mean a buyer qualifies. The council checks every application against the national and local criteria.
• Leaving the mortgage too late. The mortgage must cover at least half the discounted price, so speak to a lender who offers First Homes mortgages early.
• Skipping the survey. A discount does not remove the need to check the condition of the home, even a new build.

Scheme status

The GOV.UK pages checked on 9 November 2026 do not say whether the First Homes scheme is still open to new sites. Before relying on it, check GOV.UK and the local council for First Homes available in the area.

When to get a professional

The market value at the heart of every First Homes figure comes from a RICS registered valuer, and a good surveyor can also report on the condition of the home before you commit. When it comes to selling, the same kind of independent valuation sets the maximum price. A solicitor or conveyancer handles the restriction on the title.

How this is worked out

• Price paid = market value x (1 minus discount % / 100).
• Price cap check = price paid compared with £250,000, or £420,000 in London (first sale).
• Minimum mortgage = 50% of the price paid.
• Resale price = future market value x (1 minus the same discount % / 100), the most the home can be sold for.
• Income cap shown = £80,000, or £90,000 in London, for information only.

• GOV.UK, First Homes scheme: first-time buyer's guide (overview and eligibility) (updated 17 October 2024, checked 9 November 2026). 30% to 50% off market value; England only; buyers must be 18 or over, first-time buyers, able to get a mortgage for at least half the price and make it their only or main home; household income cap of £80,000, or £90,000 in London; councils may add local criteria for the first 3 months a home is on sale.
• GOV.UK, First Homes scheme: how the scheme works (guide updated 17 October 2024, checked 9 November 2026). At least 30% off; every home sold is valued by an independent surveyor; the price after the discount cannot be more than £250,000, or £420,000 in London, and the council can set a lower maximum; no rent is payable.
• GOV.UK, First Homes scheme: selling the property (guide updated 17 October 2024, checked 9 November 2026). The same percentage discount applies to the market value at sale, valued by a RICS registered surveyor, and that is the most the home can be sold for (example: £200,000 at 30% gives £140,000); the council must be told; after 6 months of trying the council can allow an open market sale, with the same percentage of the sale price paid to the council.
• GOV.UK, First Homes planning guidance (updated 23 December 2021, checked 9 November 2026). Minimum discount of 30%; councils can require 40% or 50% if they show need; price cap of £250,000, or £420,000 in Greater London, applies at the first sale; mortgage or home purchase plan for at least 50% of the discounted price; discount secured by a restriction on the title and carried to future sales; valuation by an independent registered valuer under RICS guidance.

Related guides

• First Homes Scheme Explained and Why the Valuation Matters
• Shared Ownership Staircasing Valuation and What It Costs
• When You Need an RICS Valuation and What It Costs