The new First Homes Policy took effect on 28 June 2021 and is part of the Government’s drive to increase home ownership and make changes to the planning system.

Under the new policy, at least 25% of any affordable housing provision in a development must meet the criteria of ‘First Homes’, which includes a minimum 30% discount against market value and a first-time sale price no higher than £250,000 (or £420,000 in Greater London).

Whilst this has the potential to increase the number of affordable homes for first time buyers, it will result in a knock on reduction in other forms of affordable housing, particularly shared ownership and other forms of intermediate provision. Viability implications are also likely.

Under the programme, landowners will be required to enter into a legal agreement that secures the delivery of First Homes and identifies the units as First Homes on the title register.

The full guidance and criteria can be found here: https://www.gov.uk/guidance/fi...