First Homes Scheme

Introduction

If you’re a first-time buyer, you may be able to buy a home for a minimum of 30% less than its market value. The home must be your only or main residence.

The home can be:

• a new home built by a developer
• a home you buy through an estate agent, which someone else bought before through the scheme

First Homes are secured in a Section 106 legal agreement. The discount applied (usually 30% in Wychavon) remains in perpetuity and therefore applies to all future re-sales of the property. A restriction is placed on the title of every First Home sold, which prevents the transfer of the title without the express permission of the local authority.

The maximum price of the First Home, after the discount is applied, is £250,000. This price cap of £250,000 only applies to the initial sale.

Eligibility

National Criteria

National Criteria applies to all First Homes and eligible purchasers who must evidence that they meet these requirements:

• The purchaser(s) must be 18 years or older
• Be a first-time buyer (if joint then this refers to all purchasers) as defined in paragraph 6 of schedule 6ZA of the Finance Act 2003 for the purposes of Stamp Duty Relief for first-time buyers
• Have a combined annual income not exceeding £80,000 in the tax year immediately preceding the year of purchase
• Have a mortgage or home purchase plan to fund a minimum of 50% of the discounted purchase price.

Local Criteria

In addition to the national criteria, Local Authorities may apply local eligibility criteria to prospective purchasers. Wychavon District Council apply an additional local connection criteria which prospective purchasers must meet. If you’re buying with others, only one of you needs to meet the local connection criteria.

Wychavon District Council’s Rural Lettings Policy 2021 (updated or subsequent documents) sets out the local connection criteria for properties located in rural areas. First Homes located within a town (Evesham, Droitwich or Pershore) will generally require applicants to have a local connection to the Wychavon district.

What is the Local Connection criteria?

In order to have local connection applicants will demonstrate one of the following local connection criteria:

• Residence - Lived in the parish / district (whichever is relevant) by choice for 6 out of the last 12 months or 3 out of the last 5 years, or
• Family - Close family (mother, father, sibling, adult son or adult daughter) living in the parish / district (whichever is relevant) by choice for at least the previous five years, or
• Employment - Permanent paid employment in the parish / district (whichever is relevant), or
• Other - A local connection to the parish / district (whichever is relevant) as a result of special circumstances (subject to approval by the Housing Services Manager).

Local connection criteria vary for each development site and specific local connection criteria is set out in the relevant Section 106 legal agreement associated with the development / property. 

In accordance with First Homes Guidance, local connection criteria is applied to First Homes for the initial 3 month marketing period. After 3 months, if no eligible purchaser is successful, national criteria will apply not exceeding 6 months.

Local Criteria exemptions for armed forces and their families

You do not have to meet the Local Criteria if you’re:

• a member of the armed forces
• a former spouse or civil partner who’s divorced or separate from a member of the armed forces
• a widow or widower of a deceased member of the armed forces (if their death was caused wholly or partly by their service)
• a veteran who left the armed forces in the last 5 years

You still need to meet all other First Homes eligibility criteria.

How to apply for a First Home

If you find a First Home that you are interested in purchasing, firstly you will need to contact the developer or estate agent (if you’re buying from a previous First Homes buyer).

They’ll check you meet the eligibility criteria and help you to complete the application. The developer or estate agent will submit your application to us.

What happens next

Wychavon District Council will check your application and will advise whether you’re eligible for the scheme. We will also contact:

• the developer or estate agent
• your mortgage adviser, if you have one
• your conveyancer

If you’re approved, Wychavon District Council will issue a certificate that shows you can be a First Homes owner.

Can I let my First Home?

You can usually let your entire property for no more than 2 years in total during the time you own it.

Before letting it, you need to:

• contact us in writing to let us know that you wish to let your home – this can be done by sending an email to This email address is being protected from spambots. You need JavaScript enabled to view it.
• check with your mortgage lender

The 2-year limit resets if you sell your home to someone else.

You may be able to let out your entire property for longer than 2 years in some circumstances. You will need to contact us in writing to request permission. You may also need to ask your mortgage lender for permission.

Letting a room

You can rent a room to someone for as long as you want, so long as:

• the home is still your only or main residence
• you live in the home while they’re renting

Selling the property (Re-Sales)

You can usually only sell the property to someone who is eligible to buy a First Home.

You must give them the same percentage discount that you got, based on the home’s market value at the time of sale.

How to sell

Follow these steps:

1. Notify us in writing that you want to sell – this can be emailed to This email address is being protected from spambots. You need JavaScript enabled to view it.
2. Find an estate agent to sell your property under the First Homes scheme.
3. Get the property valued by a surveyor who’s registered with the Royal Institution of Chartered Surveyors (RICS). Owners are required to pay for the RICS valuation and must be aware that their property sale cannot complete without a RICS valuation. You must provide the Council with your RICS property valuation prior to marketing so that the discounted price can be confirmed.

The amount the surveyor values it for minus the percentage discount you originally got is what you can sell for. You cannot sell the property for more but you can choose to sell it for less.

First Homes – Information for Developers

The National Planning Practice Guidance (NPPG) states that ‘First Homes are the government’s preferred discounted market tenure and should account for at least 25% of all affordable housing units delivered by developers through planning obligations’. The adopted South Worcestershire Development Plan (SWDP) does not include a policy on First Homes because it preceded the Affordable Housing Update Written Ministerial Statement (WMS) issued in May 2021 (Written statements - Written questions, answers and statements - UK Parliament). The emerging SWDPR policy on affordable housing will include a requirement for First Homes and the policy will carry full weight once the SWDPR is adopted. In the meantime, regard has to be made to the WMS and therefore on sites of 5 or more dwellings Wychavon District Council will seek 25% of all affordable homes required by policy SWDP15 South Worcestershire Development Plan 2016 (swdevelopmentplan.org) to be delivered as First Homes.

On the 6^th December 2023, Wychavon District Council approved a fee chargeable to developers, to be introduced from 1^st April 2024, to cover the additional work required to enable and administer First Homes. It was agreed that:

1. One fixed price fee of £966 is charged per plot for new build First Homes, to be paid by developers;
2. An additional initial site fee of between £200 and £400 is charged, to be paid by developers, dependent on the number of plots for sale on the site, as follows:

1. That these fees be added to the Council’s fees and charges schedule from April 2024

Whilst the fee is fixed for 1^st April 2024-31^st March 2025, fee levels will be reviewed annually as part of the annual budget setting process and will be informed by the actual costs of administering First Home applications, and therefore the fee could change.