London Daily

Focus on the big picture.
Saturday, Oct 25, 2025

Half-price homes scheme to launch in London - here’s how it will work

Half-price homes scheme to launch in London - here’s how it will work

First Homes is being trialled from today, and is due to be rolled out across England later this month. Here’s how it will work.

The Government’s scheme to help first-time buyers onto the property ladder by offering a discount of up to 50 per cent launches in London this month.

First Homes is part of Boris Johnson’s affordable homes pledge and is being tested in Bolsover, Derbyshire, today before it being rolled out across the rest of England on 28 June.

Rightmove’s Tim Bannister expects “a scramble” to buy these homes as they come up. “Based on current levels of available stock it is unlikely there will be enough of these properties to satisfy demand,” he says.

But critics of the initiative, which has been designed to replace Help to Buy, warn it may have little impact in the capital where the average house price is 2.9 times more than in the north. “First Homes is likely to have significant regional variations,” says Emily Williams of Savills.

Who are the First Homes for?


A small proportion of newly built homes across London will go on sale 30 to 50 per cent cheaper than comparable properties on the open market, from 28 June.

The Government is asking developers (in collaboration with local councils) to ring fence 25 per cent of new homes delivered as part of their social contribution (known as section 106) to help first-time buyers in the capital access the pricy housing market.

It is for those people who are trying to buy their first home in an area that they have grown up, or where they are working or living, but are struggling to amass the deposit or qualify for a mortgage because of the speed of house price rises over the last 20 years.

Am I eligible?


Wannabe homebuyers must have an annual household income of less than £90,000 in London (and £80,000 across the rest of the country) to be successful. But if they can afford to buy the home with their savings and the discount then they won’t qualify. Buyers must purchase needing a 50 per cent mortgage.

To buy one of the homes within the first three months of it going on sale, buyers must prove local connection but other factors may come into play too, such as being a key worker or a carer in the area.

For the first three months the local authority will have flexibility over who qualifies. After that period the conditions set by the council will be removed for any First Homes that have not been reserved or sold.

How much will the First Home scheme cost?


First Homes are capped, meaning that after the discount is applied the property cannot cost more than £420,000 in London (or £250,000 in the rest of England).

Within the capital and the more expensive areas of the Home Counties this may buy a flat but will not stretch to a family-sized home. Another fear is that the price capping may force developers to build much smaller units for those homes under the First Homes banner.

Analysts at the estate agent Savills have done some number crunching: The initial pilot scheme will be in Bolsover where a 700 sq ft property (which equates to a standard two-bedroom flat), with a 30 per cent discount, is affordable to 59 per cent of households.

But in an area where affordability is already stretched, the scheme will benefit fewer people.

In St Albans, in the home county of Hertfordshire, Savills calculates that only 22 per cent of local households could afford to buy a 700 sq ft property with a 30 per cent discount.

In London – based on house price to earnings ratios – it is affordable to just 12 per cent of household.

Of course, these calculations are based on the capital-wide average house price. The scheme will be more affordable to more people in the outer London boroughs where house prices are lower than in inner London.

Read the small print


When it comes to selling you make as much profit as those selling on the open market (assuming house prices in the area go up). It has to be sold on to a first-time buyer who is also eligible for a ‘first home’.

The idea is that this affordable home is passed on to those who need it, so if it was bought with a 50 per cent discount, it must be sold with one too.

However, due to property price movement, the asking price will not be subject to the same caps of £450,000 in London.

Where can I find First Homes?


The scheme was announced a year ago and has been going through an industry consultation. So most of these homes will be under construction or in the planning process. Unlike the Government’s Help to Buy initiative, which was launched in 2013 and finishes next year, there is no official portal to register with.

Prospective buyers must do their own research and seek out the individual developer who is delivering First Homes in their area. It is, however, up to the local authority to publicise the relevant properties too.

Newsletter

Related Articles

0:00
0:00
Close
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
China and Russia Deploy Seductive Espionage Networks to Infiltrate U.S. Tech Sector
Apple’s ‘iPhone Air’ Collapses After One Month — Another Major Misstep for the Tech Giant
Graham Potter Begins New Chapter as Sweden Head Coach on Short-Term Deal
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
×