The expense of purchasing your first home can feeling daunting which is why the government offers first time buyer stamp duty relief. It offers a financial lifeline, helping reduce the upfront costs.
This guide covers everything you need to know about first time buyer stamp duty relief, including guidance on the current relief rates, which were updated on 1st April 2025, and tips to maximise your savings.
Key tip: Below you can calculate your first time buyers stamp duty relief with our online calculator. You can also can an instant quote for conveyancing with our online conveyancing calculator.
What is Stamp Duty (SDLT) and Why Does It Matter for First-Time Buyers?
SDLT is a tax applied to property or land purchases specifically in the regions of England and Wales. However, to ease the financial burden on, likely anxious, first-time buyers, the government offers a first time buyer stamp duty relief scheme that decreases or, in some cases completely eliminates SDLT costs on residential properties that meet specific price thresholds and criteria.
Buying Your First Property
Unfortunately, first time buyers are much more likely to face financial difficulties, which can include securing deposits and covering legal fees. This is where first time buyer stamp duty relief comes in, allowing first time buyers to save large sums of money, making the goal of homeownership more achievable.
Key tip: As a first-time buyer, it’s important to be well-prepared before purchasing your first property. You may want to read our guidance from a First Time Buyer Solicitor.
How Stamp Duty Relief Works for First-Time Buyers
As mentioned previously, the first time buyer stamp duty relief scheme is designed to make homeownership much more attainable by lowering the initial tax costs for those who qualify.
Firstly let’s look at the standard rates for Stamp Duty and then see how they compare to the first time buyer stamp duty relief rates.
Residential SDLT Rates without first time buyer stamp duty relief:
| Property or lease premium or transfer value | SDLT rate |
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Residential SDLT Rates with first time buyer stamp duty relief (please note that no relief is available for properties over £500,000. if the property purchase price is over £500,000 the standard rules apply.
| Property or lease premium or transfer value | SDLT rate |
| Up to £300,000 | Zero |
| The next £200,000 (the portion from £300,000 to £500,000) | 5% |
Use Our First Time Buyers Relief Calculator
Are you curious about how much stamp duty you’ll need to pay? Use our first time buyer stamp duty relief calculator to get an instant estimate.
How to use our First Time Buyers Stamp Duty Relief Calculator:
Step 1: Enter the property price.
Step 2: Receive an instant breakdown.
Knowing your SDLT costs upfront can help you budget smarter and avoid surprises.
Who Qualifies for SDLT Relief?
To qualify for SDLT relief as a first-time buyer, you must meet these criteria:
- First-Time Buyer Status
- You cannot have previously owned or inherited property anywhere in the world.
- Residential Property
- Relief applies only to homes, not commercial properties or land.
- Price Thresholds
- After 1 April 2025: Properties up to £500,000.
- Main Residence
- The property must be your primary residence, not a second home or buy-to-let.
- Joint Purchases
- If you’re buying with someone who is not a first-time buyer, you won’t qualify for first time buyer stamp duty relief.
Critical Considerations for First-Time Buyers
As a first-time buyer, there are several important considerations to keep in mind.
- It is essential to budget carefully and ensure that your property price stays within the SDLT relief thresholds to avoid disqualification.
- If you are planning a joint purchase, both buyers must be first-time buyers to qualify for the relief, so understanding joint eligibility is crucial.
- Remember to plan for additional costs beyond SDLT, such as legal fees, mortgages, surveys, and moving expenses, as these can add up quickly.
- Taking these factors into account can help make your home-buying journey smoother and more successful.
Key tip: As a first-time buyer, purchasing a property can feel overwhelming. This is why leasehold properties are often an attractive option, offering a more affordable entry point onto the property ladder. Check out our article on buying a leasehold property for helpful advice.
Innovative Ways to Improve Affordability
- Guarantor Mortgages (also known as Joint borrower sole proprietor mortgages): Parents or close relatives can act as guarantors, boosting borrowing capacity. This setup allows a family member to help with mortgage repayments without being listed on the property deed, preserving your first time buyers stampt duty relief.
- Shared Ownership: Purchasing a share of a property allows you to pay SDLT only on the purchased share, reducing initial costs.
- Negotiate Property Prices: Keeping the property price below the SDLT thresholds can save thousands. Sellers may be willing to lower prices to attract first-time buyers.
FAQs About Stamp Duty Relief for First-Time Buyers
What is first time buyer stamp duty relief?
first time buyer stamp duty relief reduces or eliminates SDLT costs for first-time buyers purchasing residential properties.
Will I qualify if I’ve inherited property?
No, owning or inheriting property disqualifies you from SDLT relief.
Can SDLT relief be combined with other schemes?
Yes, first time buyer stamp duty relief can complement schemes like Help to Buy or shared ownership
What happens if my property exceeds the SDLT threshold?
If your property price exceeds the threshold, SDLT is calculated at standard rates.
Do joint buyers qualify for SDLT relief?
Only if all buyers are first-time buyers.
Are shared ownership properties eligible for SDLT relief?
Yes, SDLT is calculated on the purchased share.
Will energy-efficient homes qualify for additional relief?
Future reforms may include incentives for energy-efficient homes, but details are pending.
Is SDLT relief available for second homes?
No, SDLT relief applies only to your main residence
Where can I calculate my SDLT?
You can calculate your SDLT using the SDLT calculator. Calculate your SDLT now.
Advice and Support for First Time Buyers
As first time buyers, it’s likely you will come across lots of new and unfamiliar terms so it’s wise to prepare youself before your search for your first home. Here are some articles that may be useful.
The advantages and disadvantages of shared ownership property.
An Outline of the Conveyancing Process
