diff --git a/frontend/src/pages/instance/components/InstanceForm.vue b/frontend/src/pages/instance/components/InstanceForm.vue
index a51ef6b60b..96fba71934 100644
--- a/frontend/src/pages/instance/components/InstanceForm.vue
+++ b/frontend/src/pages/instance/components/InstanceForm.vue
@@ -655,7 +655,7 @@ export default {
                 ...this.preDefinedInputs
             }
         }
-        if (this.teamInstanceLimitReached || this.teamRuntimeLimitReached) {
+        if (this.teamInstanceLimitReached || this.teamRuntimeLimitReached || !this.instancesAvailable) {
             this.input.createInstance = false
         }
     },
diff --git a/test/e2e/frontend/cypress/tests-ee/free-tier/free-tier.spec.js b/test/e2e/frontend/cypress/tests-ee/free-tier/free-tier.spec.js
new file mode 100644
index 0000000000..a768cc2df2
--- /dev/null
+++ b/test/e2e/frontend/cypress/tests-ee/free-tier/free-tier.spec.js
@@ -0,0 +1,22 @@
+describe('FlowFuse EE - Free Tier', () => {
+    beforeEach(() => {
+        cy.login('freddie', 'ffPassword')
+        cy.home()
+    })
+
+    it('shows that Hosted Instances are a premium feature in the side navigation', () => {
+        cy.get('[data-nav="team-instances"]').get('[data-el="premium-feature"]').should('exist')
+    })
+
+    it('shows that Hosted Instances are a premium feature when on the /team/<teamId>/instances page', () => {
+        cy.get('[data-nav="team-instances"]').click()
+        cy.get('[data-el="page-banner-feature-unavailable-to-team"]').should('exist')
+    })
+
+    it('redirects to /application/devices after creating an Application when Hosted Instances are not enabled', () => {
+        cy.get('[data-el="empty-state"] [data-action="create-application"]').click()
+        cy.get('[data-form="application-name"] input[type="text"]').type('My Application')
+        cy.get('[data-action="create-project"]').click()
+        cy.url().should('include', '/devices')
+    })
+})
diff --git a/test/e2e/frontend/test_environment_ee.js b/test/e2e/frontend/test_environment_ee.js
index ed68b25d4d..695f5841da 100644
--- a/test/e2e/frontend/test_environment_ee.js
+++ b/test/e2e/frontend/test_environment_ee.js
@@ -102,6 +102,27 @@ const { Roles } = FF_UTIL.require('forge/lib/roles')
         }
     })
 
+    // Mimic the FF Cloud "Free" Team Type
+    const userFreddie = await factory.createUser({ username: 'freddie', name: 'Freddie Fett', email: 'freddie@example.com', password: 'ffPassword', email_verified: true, password_expired: false })
+    const freeTeamType = await factory.createTeamType({
+        name: 'Free Team',
+        description: 'team type description',
+        active: true,
+        order: 4,
+        properties: {
+            instances: { [flowforge.projectTypes[0].hashid]: { active: false } },
+            devices: {},
+            users: {},
+            features: {}
+        }
+    })
+    const freeTeam = await factory.createTeam({
+        name: 'FFeam',
+        TeamTypeId: freeTeamType.id
+    })
+    await factory.createSubscription(freeTeam)
+    await freeTeam.addUser(userFreddie, { through: { role: Roles.Owner } })
+
     // create a snapshot on DeviceB
     const deviceB = flowforge.applicationDevices.find((device) => device.name === 'application-device-b')
     await factory.createDeviceSnapshot({ name: 'application-device-b snapshot 1' }, deviceB, userTerry)