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What are the benefits of being a first time buyer?

Oct 27, 2025
As a first time buyer, you’re in a strong position with access to exclusive benefits, schemes and first time buyer incentives. From tax advantages to government support, there’s a range of benefits for first-time home buyers designed to make homeownership more achievable. 
 
Our comprehensive guide breaks down the key first time buyer advantages to help you take this exciting first step. Read on to learn more.
 

Understanding first time buyer benefits

Navigating the property market for the first time can feel overwhelming, but understanding the support available can make the process much smoother. 
 

Who qualifies as a first time buyer in the UK?

In the UK, you’re classed as a first time buyer if you’ve never owned a property before, either in the UK or abroad. This includes inherited or gifted property, and it must be your only or main residence. 
 

Why do these benefits exist? 

With the rise of house prices, it can be difficult for first time buyers to get on the property ladder. To address this, the UK Government have created a range of support schemes and incentives designed to make homeownership more accessible, including help with deposits and ongoing costs. 

 

Financial reliefs and tax advantages

First time home buyer benefits vary from financial support to tax relief. We’ve broken down the main advantages below. 
 

Stamp Duty Land Tax Relief 

Stamp Duty Land Tax is a tax paid to the government when you purchase property over a certain value in England and Northern Ireland. The amount you pay depends on the price of your property. 
 
As a first time buyer, you have access to reduced rates on properties up to £500,000. Here are the Stamp Duty Land Tax rates for first time buyers:

 Purchase Price   Stamp Duty %
 Up to £300,000  0%
 £300,001 - £500,000  5%
 Over £500,000  Standard rates apply (no relief)
 
 

Savings on initial costs and legal fees

The government, developers and lenders offer exclusive incentives to help first time buyers reduce upfront costs, including: 
  • Reduced deposit requirements 
  • Contributions towards legal and conveyancing fees 
  • Support with moving costs
  • Reduced arrangement fees
  • Cashback deals 
  • Free property valuations

Government schemes and help for first time buyers

The government offer several schemes designed to help first time buyers. Here are the main options available. 
 

First Homes Scheme

First Homes Scheme allows eligible first time buyers to purchase a home for 30-50% less than its market value. To qualify, you must be a first time buyer, 18 or over and able to secure a mortgage for at least half of the property’s discounted value.
 
The house must be your only or main residence, and cost £250,000 or less (£420,000 in London) after the discount. Your household income cannot exceed £80,000 per year before tax, or £90,000 if the property is in London. 
 

Shared Ownership 

Shared Ownership helps you buy a share of a property, typically 10-75%, if you can’t afford the full deposit or mortgage payments. You’ll pay rent on the remaining share to a housing association, with the option to buy more shares over time.
 
To qualify, you must be a first time buyer, earn £80,000 or less annually (£90,000 in London) and be unable to afford a suitable home that meets your needs.
 

Lifetime ISA  

A Lifetime ISA allows first time buyers to save up to £4,000 annually, with the Government adding a 25% bonus of up to £1,000 each year. The account must be open for at least 12 months before you can use it for a property purchase.
 
You can only use it for homes worth up to £450,000. Be aware that withdrawing funds for any other purpose incurs a 25% penalty.
 

Low deposit mortgage options 

First time buyers can access mortgages with deposits as low as 5-10%. The government’s Mortgage Guarantee Scheme has encouraged lenders to offer 95% mortgages on both new build and resale properties.
 
While smaller deposits typically mean higher interest rates, many first time buyers find their monthly payments are comparable to or less than rent, whilst building equity in their own home. Saving a larger deposit of 10-15% may help you secure better rates.
 

Other first time buyer perks and practical advantages

Beyond financial benefits, first time buyers enjoy several practical benefits that can make the buying process smoother. 
 

Being chain-free 

As a first time buyer, you’re not part of a property chain, making you more attractive to sellers. There’s no risk of your purchase falling through due to issues further down the chain, which means faster completion times and stronger negotiating power. This reliability may even help you secure a better price. 
 

Competitive mortgage deals 

Lenders are keen to win first time buyer business, offering dedicated support and products designed specifically for you. These often include lower arrangement fees, cashback offers, free valuations and access to higher loan-to-value ratios, making your initial costs more manageable. 
 

Eligibility and conditions 

While first time buyer benefits are valuable, each scheme has specific requirements and conditions you’ll need to consider. 
 

Income thresholds and property value caps 

Different schemes have varying eligibility requirements. Many include income thresholds, meaning you’ll only qualify if your household earns below a certain amount. 
 
Property value caps may also limit which homes you can purchase under specific schemes, so it’s worth checking these restrictions before viewing properties.
 

Restrictions based on previous ownership and intended use 

To qualify for first time buyer benefits, you must meet these essential criteria:
  • You cannot have owned property anywhere in the world, including inherited properties or any home you’ve previously owned
  • The property must be your main residence, not a buy-to-let or second home
  • Most schemes prohibit subletting, even if you’re living there part-time
 

Understanding scheme limitations

It’s important to be aware of potential restrictions when choosing a scheme: 
  • Shared Ownership rent can increase over time 
  • First Homes discount can affect your flexibility when reselling
  • You cannot combine all schemes simultaneously 
  • If you’re buying with someone else, you must both be first time buyers to qualify 
  • Not all properties are eligible for every scheme, with availability varying by region
 
 
Ready to become a homeowner? Explore our range of new homes, with fantastic offers to help you start your homebuying journey. 
 

 

 
 

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