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First Homes

First Homes is a government scheme aimed at helping first-time buyers, including keyworkers, onto the property ladder. These homes are offered at a discount of 30% compared to the market price. This discount will apply forever and is passed down to future buyers. 

First Homes are marketed and sold by developers as part of the affordable housing requirement delivered on new developments.

First Homes features

  • The price of a First Home (after applying discounts) is capped at £250,000
  • There must be a minimum of 30% discount from the open market value
  • The discount is passed on to all future buyers
  • The sales cap only applies on first sale

How to apply for a First Home

You'll need to check if the builder is including First Homes as part of a development. If they are, you must qualify through the eligibility criteria (see below) and apply through the builder. You'll find a step-by-step guide for buying a First Home on GOV.UK.

We request that you submit a supporting statement alongside your application for a First Home. You'll find further information about this below.

We have published a list of developments where planning permission has been granted and which include First Homes.

Eligibility

To buy a First Home you must meet both the national (government) and local (council) eligibility criteria. If you meet these criteria, then once you’ve found a home you like and can afford, you will need to make your application directly through the builder.

National First Homes eligibility criteria

  • You must be a first-time buyer
  • Your household income cannot be more than £80,000 per year
  • The property you are buying must be your main residence
  • The property must be purchased with a least a 50% mortgage

Local First Homes eligibility criteria

Cheltenham Borough Council is keen to ensure that any First Homes delivered in Cheltenham Borough meet the housing needs and aspirations of local residents.

If you are looking to purchase a First Home in Cheltenham Borough you will need to meet our local connection criteria. This will mean that you will meet one of the following:

  • Work in Cheltenham borough
  • Live in Cheltenham borough
  • Have close family connections living in Cheltenham borough
  • Currently taking part in regular (at least weekly) voluntary work based in Cheltenham Borough, which has been continuous for at least the last 6 months
  • Able to demonstrate other special factors

Only one member of your household buying a First Home in joint names needs to have a local connection to Cheltenham borough. 

More detailed information about First Homes can be found on GOV.UK

Key workers and First Homes

If you are a key worker, we would strongly encourage you to apply for First Homes. We classify employees working in the following sectors as key workers:

  • NHS and social care
  • Police
  • Teachers and teaching staff
  • Fire and rescue service
  • Ministry of Defence and GCHQ employees
  • Local government employees
  • Civil servants
  • Charitable organisations

If you work outside of the employment sectors listed above, you can still apply to buy new First Homes, provided that you meet the required national and local eligibility criteria, as outlined above.

For any other questions relating to First Homes please email us at [email protected]. 

First Homes fees

  • On first sale, developers will have to pay a fee of £175 plus VAT to the council for each First Home delivered. This goes towards the administration of First Homes
  • If you sell your First Home in future, you will have to pay a fee to us of £175 plus VAT. This will go towards the long-term administration of First Homes

We will review these fees from time to time to ensure that they reflect the costs of administering First Homes.

Reservation fee

Developers will typically ask you to pay a reservation fee to secure a new First Home. This fee is capped at £500. The developer will refund your reservation fee if your application to purchase a First Home is unsuccessful.

If you are looking to buy a new or existing First Home, we strongly recommend that you seek independent legal and financial advice before entering into any sale.

First Homes supporting statement

Where a developer progresses your First Homes application, to help us understand your connection to Cheltenham borough, we ask that you submit a short supporting statement of 300 words or less. This should be submitted alongside the First Homes application pack and should cover the following points:

  1. The nature of your local connection to Cheltenham borough
  2. The nature of your employment, and how this makes a positive contribution to supporting Cheltenham’s economic, social or broader community wellbeing 
  3. Why is securing a First Home important to you?
  4. Would you be able to buy a home without the support provided by First Homes?

First Homes privacy notice and data handling

Cheltenham Borough Council will use any written or verbal information provided by potential buyers to both improve the First Homes administration process and review the First Homes policy moving forwards. Data will be stored and used confidentially in line with the First Homes Privacy notice.

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