First-time buyer benefits and advantages

• First-time buyers don't pay stamp duty on the portion of the property price up to £300,000 (England only, not Wales), potentially saving thousands compared to other buyers.
• Government schemes like LISA offer 25% bonuses on savings, while First Homes can provide discounts of 30-50% on property prices.
• Being chain-free makes you more attractive to sellers and can lead to faster completion times.

Being a first-time buyer comes with several valuable advantages that can save you money and make your purchase more attractive to sellers. From stamp duty savings to government schemes and faster completion times, this guide covers all the perks available to first-time buyers and shows you how to make the most of them when buying your first home.

Before we dive into the benefits, let's make sure you actually qualify as a first-time buyer. It's pretty straightforward, but worth double-checking with these questions:

• Have you ever owned a house or flat before? Anywhere in the world - doesn't matter if it was your home or you rented it out.
• Have you inherited a property or been given one as a gift?
• Is your name currently on any property deeds?

If you (and anyone you're buying with) answered 'no' to all of these, then you're officially a first-time buyer and can access all the benefits we're about to cover.

Stamp duty relief

There aren’t any secret discounts for first-time buyers (sorry), but you do get a higher threshold on stamp duty land tax (SDLT) (England only, not Wales), which can make the overall costs of buying a home more affordable.

As a first-time buyer, you’ll have a zero-rate threshold of £300,000 (opposed to £125,000), and you’ll pay 5% on the property price portion between £300,001 and £500,000.

Example of first-time buyer SDLT:

Let’s say you’re buying a property for £400,000. You’ll owe no SDLT up to £300,000, and owe 5% on the other 100,000:

• Property price: £400,000
• 0% on the portion £0 to £300,000 = £0
• 5% on the portion £301,000 to £400,000 = £5,000
• Total SDLT to pay on a £400,000 property = £5,000

If you were to buy the same home as someone who has previously owned property, the total SDLT payable would be £10,000.

Learn more: Stamp duty guide 2025

Remember that this is the rate for purchasing in England only, if you’re buying in Wales, you’ll pay Land Transaction Tax (LTT) where different rates apply. Read more about LTT rates here.

Struggling to see how you're going to afford a deposit and monthly payments? We get it, it can seem like a lot. There's plenty of government help available to make buying a home more manageable and affordable. Here's what's on offer.

Lifetime individual savings account (LISA) – boost your savings

A LISA is worth considering if you're saving for your first home. You can save up to £4,000 every tax year, and the government adds a 25% bonus on top. Save the full £4,000 and you'll get an extra £1,000 - essentially free money from the government.

There are a few requirements to be aware of. You need to be between 18-39 to open one, and your future home can't cost more than £450,000. The important thing to remember is that you must have had the LISA open for at least a year before you can use it to buy.

That's why it makes sense to open one early, even if you're nowhere near ready to buy. You can start with just £1 to get that 12-month countdown going.

First Homes scheme – get a discount on your property

The First Homes scheme lets eligible first-time buyers buy their first home for 30% to 50% less than its market value - up to half price in some cases.

It's only available in England, and there are some hoops to jump through. You need to earn less than £80,000 a year (£90,000 if you're in London), and you'll need to be able to afford a mortgage for at least half the property price. The property itself must cost under £250,000 after the discount or £420,000 in London.

You can buy either a new home built by a developer, or an existing First Homes property that's being resold through an estate agent.

There's one important catch though - when you come to sell, you have to pass on the same discount to the next buyer. So, while you save money buying, you won't pocket the full market value when you sell.

Learn more about the First Homes scheme here.

Shared ownership – buy a slice, rent the rest

Can't afford to buy a whole property? Shared ownership lets you buy just a share of it instead. You can purchase anywhere from 10% to 75% of a property, then pay rent on the rest to a housing association.

The good news is that because you're only getting a mortgage on your share, your deposit goes further, and you might get access to better interest rates. Plus, you can buy more shares later to increase your equity - this is known as "staircasing." The more you own, the less rent you'll pay.

Read more about shared ownership here.

One of the biggest advantages of being a first-time buyer is that you don't bring a chain with you. That makes you incredibly attractive to sellers and puts you ahead of other buyers who need to sell their current home first.

Why sellers love first-time buyers

When you put in an offer, sellers know you can move quickly since you're likely living with family or renting. You don't need to wait for your own sale to go through or worry about other purchases falling through. This means you can complete faster than the average mover.

Making it work for you

Always mention you're a first-time buyer when making enquiries or offers. Sellers might even accept lower offers from chain-free buyers because they value certainty and speed. It's one of the benefits of being new to the property market.

Learn more: What is a property chain?

Do first-time buyers get better mortgage rates?

Not specifically, no. Lenders don’t offer special interest rates just because you’re a first-time buyer. Your mortgage rate depends on your credit score, deposit size and income. However, first-time buyers can access government schemes like shared ownership and the First Homes scheme to support with the purchase of a property.

Can first-time buyers get a mortgage with bad credit?

Yes, but it's more challenging and you'll likely face higher interest rates. Some specialist lenders work with people who have poor credit histories. You might need a larger deposit (15-25%) and should consider improving your credit score before applying. Check your credit report for errors and pay down existing debts to boost your chances.

Do first-time buyers need a solicitor?

Yes, you'll need a conveyancing solicitor or licensed conveyancer to handle the legal side of buying. They'll do property searches, handle contracts, and transfer the money.

Learn more about what a conveyancer does here.

Can first-time buyers buy buy-to-let properties?

Technically yes, but you'd lose your first-time buyer status and benefits like stamp duty relief. Most buy-to-let mortgages also require larger deposits and higher rates. If you're considering investment property, it's usually better to buy your own home first to access the benefits.

How long does it take to buy a house as a first-time buyer?

The timeline varies hugely depending on your situation. Searching for the right home can take anywhere from 1 to 12 months - it's important to take your time and view multiple properties to find the right one.

Once you've found a place, securing a mortgage typically takes 2 to 6 weeks, and the conveyancing process usually takes 8 to 16 weeks. While first-time buyers don't have a chain to worry about, other factors can slow things down - like if you're applying through government schemes, which often involve additional checks and paperwork.

Read more about how long it takes to buy a home.