Your First Home income cap: what is known so far
Your First Home will have a household income cap, set at the Budget on 28 October 2026. What similar schemes use, how income is counted, what to prepare.
Status: Based on the government announcement of 26 September 2026. Full rules are due at the Budget on 28 October 2026. Every figure is labelled as confirmed, announced, expected or assumed. Some figures on this page are announced or confirmed and some are our working assumptions; the calculator and the methodology page label each one.
Page last updated 27 September 2026. Assumptions are explained on the methodology page.
In short
- Confirmed: there will be a household income cap. Not confirmed: the figure, and how household income will be counted.
- The nearest comparisons, First Homes and Shared Ownership, both use £80,000 a year (£90,000 in London). Help to Buy had no income cap.
- Whatever the cap, lenders' own limit of about 4.5 times income will decide what you can actually borrow.
What has the government said about the income cap?
The Your First Home income cap is announced as a rule and unknown as a number. The announcement of 26 September 2026 says the scheme “will also set a household income cap”, with the detail “set out at Budget” on 28 October 2026 (GOV.UK). The purpose is stated too: “to further ensure support is targeted at those who need it”, which we read as a response to the criticism that Help to Buy, which had no income cap, helped plenty of people who could have bought anyway.
What comparable schemes use
| Scheme | Income cap | Source |
|---|---|---|
| First Homes (30% discount on new builds) | £80,000 a year before tax, £90,000 in London, combined across everyone buying | GOV.UK |
| Shared Ownership | £80,000 a year or less, £90,000 in London | GOV.UK |
| Help to Buy (2013 to 2023) | None | |
| Your First Home | To be announced 28 October 2026 |
The £80,000 figure is the one the government already uses for First Homes and Shared Ownership (GOV.UK), so it is the obvious candidate. A lower cap would sharpen the targeting; a higher one would widen the scheme to more of the new-build market. Both are possible.
How household income is usually counted
Nothing is published for Your First Home, so this is what the comparable schemes do. First Homes looks at the combined before-tax income of everyone buying, based on the previous tax year (GOV.UK). GOV.UK does not define household income for Shared Ownership; landlords usually count everyone named on the application, and they ask for payslips, tax returns for the self-employed, and evidence of any benefits or maintenance, so ask the landlord before you apply. Expect Your First Home to check income at the point you reserve and again at exchange, as Help to Buy did with its affordability checks.
The other income test: the lender’s
Even with no cap, income limits what you can buy. Most lenders lend up to about 4.5 times household income, and some go higher for strong applicants (MoneyHelper). Under the scheme the mortgage is 77.5% of the price, so:
| Household income | Rough maximum mortgage at 4.5 times | Maximum home price under the scheme | 2.5% deposit needed |
|---|---|---|---|
| £30,000 | £135,000 | £174,000 | £4,350 |
| £40,000 | £180,000 | £232,000 | £5,800 |
| £50,000 | £225,000 | £290,000 | £7,250 |
| £60,000 | £270,000 | £348,000 | £8,700 |
| £80,000 | £360,000 | £464,000 | £11,600 |
Figures are rounded and are a rule of thumb only. The mortgage required calculator does this for your own income, and the price caps will add a second ceiling once they are published.
What to prepare
- Work out your household income before tax, including everyone who will live in the home, and gather three months of payslips or two years of accounts if self-employed.
- Check your credit record now; lenders will.
- Decide whether you are buying alone or jointly, because that changes both the income counted and the first-time buyer test on the eligibility page.
- Bookmark this page. The cap is the first figure we will add on Budget day, and the updates page lists every change we make.
Figures are illustrations, not quotes or advice. A mortgage is a loan secured on your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Frequently asked questions
What is the Your First Home income cap?
Is the cap on my income or our joint income?
Is the cap before or after tax?
If I earn under the cap, will a lender give me the mortgage?
Sources
- GOV.UK: New first-time buyer scheme to be confirmed at Budget (MHCLG press release) (accessed 26 September 2026)
- GOV.UK: First Homes scheme (income limits) (accessed 27 September 2026)
- GOV.UK: Shared ownership homes, who can apply (income limits) (accessed 26 September 2026)
- MoneyHelper: Mortgage affordability calculator (the 4.5 times income rule of thumb) (accessed 27 September 2026)
Related pages
- Your First Home eligibility: am I a first-time buyer?
Who qualifies for Your First Home: the first-time buyer definition, what counts as owning before, the income and price caps, and what is still unconfirmed.
- Your First Home price caps: what we know before the Budget
Your First Home's local price caps come at the Budget on 28 October 2026. Help to Buy's regional caps, what 2.5% and 20% mean at each, and what to expect.
- Your First Home mortgage calculator: what you need to borrow
See the mortgage you would need under Your First Home (77.5% of the price with a 2.5% deposit), the monthly cost, and the income a lender usually wants.
- Shared ownership eligibility: who qualifies in 2026
Shared ownership eligibility explained: the £80,000 income cap (£90,000 in London), what counting as unable to afford a home means, and who gets priority.