Planning update

First Homes: discounted homes for first-time buyers

What First Homes are

First Homes are a form of discounted market sale housing for first-time buyers, including key workers. The discount is secured in perpetuity through a section 106 agreement, so later buyers also benefit.

How they affected planning

The 2021 policy expected a quarter of affordable housing secured through planning obligations to be First Homes. This changed the tenure mix councils sought on larger schemes, and it introduced First Homes exception sites on the edge of settlements.

Since 2021

National policy on affordable housing tenure has been revised since. The December 2024 NPPF removed the mandatory 25% First Homes requirement, giving councils more flexibility to prioritise social rent. Always check the council’s current policy and the latest NPPF when planning the affordable mix for a scheme.

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Sources

This article is general information about planning in England at the date shown. It is not advice on any particular site, and the law and policy may have changed since. Please speak to us before relying on it.

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