Much is made of the first-time buyer as a group when discussing the housing market. The reason? Those already on the property ladder have an easier time stepping up. That initial step onto the ladder is far more difficult for first-time buyers.
This guide covers everything first-time buyers need to know in today's market - recent Stamp Duty changes, financial schemes, and expert conveyancing guidance.
What is a first-time buyer?
A first-time buyer is someone who has never owned property in the UK (or abroad) and is looking to buy their first home.
This applies whether you're buying:
- On your own (with or without government scheme assistance)
- With financial help from family
- As co-owners with others
Important: If you previously owned property but no longer do, you won't qualify as a first-time buyer for most schemes.
Key changes for first-time buyers in 2025
- Stamp Duty relief removal - The most significant change is the April 2025 removal of the first-time buyer Stamp Duty relief, lowering the threshold from £425,000 to £300,000. This has added thousands to the cost of purchasing a first home.
- New mortgage products - Lenders have responded with an increased range of low-deposit mortgages at 5-10%, though these come with higher interest rates to offset lender risk.
- Digital conveyancing evolution - The conveyancing process has become increasingly digital, with more first-time buyers expecting online case tracking, e-signatures, and 24/7 access to their purchase documentation.
- Regional price shifts - While major city centers continue to see high prices, there's been growth in "commuter belt" locations as remote work patterns have stabilised in 2025.
- Updated government schemes - With Help to Buy fully wound down, the First Homes Scheme has become the primary government support mechanism for first-time buyers in England.
The 2025 housing market: current challenges for first-time buyers
More than 50 years ago, it was quite reasonable to expect a family to be able to afford to buy a property with a mortgage, based on the level of annual earnings of just one family member, which would also provide a reasonable amount of disposable income to afford the things of family life.
Fast forward to the present and the situation is considerably different.
The cost of living is much higher than it used to be with foodstuffs, heating, commuting and so much else competing for whatever is left after paying the bills for the basic living expenses.
This problem is exacerbated by the extraordinary level of house price inflation over the decades - indeed, since 1992, the average house price has risen by 500% - that has outstripped the level of salary or wage increases in the same period.
This becomes a problem because of what the mortgage lenders use to judge how much they can lend, which is based on a multiple of how much you earn annually. In turn, this means that the more expensive homes quickly become out of reach financially. Perhaps it also means that you are priced out of the market before you can even think about stepping on that first rung of the property ladder.
What has made the situation even more problematic for the first-time buyer is the reduction in the ability to save for the required deposit before applying for a mortgage (usually set at 10% of the asking price). First-time buyers who are currently renting have found that the monthly rental payments have also increased significantly, which impacts the ability to store away some of the money to create the desired deposit.
According to the latest government housing market figures, the number of first-time buyers willing to try to get into the property market fell to a 10-year low in 2023, though early 2025 has seen modest recovery as buyers adjust to new market conditions.
Recent changes to Stamp Duty for first-time buyers
There are also growing pressures for the first-time buyer in the shape of the governmental approach to the payment of the Stamp Duty Land Tax (in England) and Land Transaction Tax (in Wales). The stamp duty is essentially a tax that is payable on the purchase of a property that is an incremental percentage dictated by the set thresholds of the agreed sale price of the home.
To assist the first-time buyer, from November 2017, the first-time buyer was granted relief on residential purchases by raising the initial threshold to £425,000, meaning that any home costing less than that threshold level would require no payment.
However, as of April 1, 2025, the stamp duty relief for first-time buyers has been removed, reverting to the £300,000 threshold - this has significantly increased the cost of purchasing a home for first-time buyers.
Financial help for first-time buyers in 2025
Recognising the housing market's crucial role in a healthy economy, successive governments have provided schemes to boost first-time buyer numbers. Meanwhile, mortgage lenders have developed new products to help with monthly repayments.
The biggest hurdle? Finding funds for the deposit.
The 'Bank of Mum and Dad'
This phrase has gained particular traction recently when reporting on the property market.
Simply put: It's reliance on financial assistance from family or friends to reduce cost pressures. This allows first-time buyers to proceed without excessive pressure from mortgage lenders.
Low-deposit mortgages in 2025
Excellent news: Low-deposit mortgage deals are at their highest in almost 20 years. This means less money needed for 5-10% deposit products.
The trade-off: Lenders apply higher interest rates to offset the increased risk of lending larger sums.
Government schemes for first-time buyers
Help to buy (winding down)
Help to Buy ISA: Closed to new applications, but existing holders can still claim the 25% government bonus (up to £3,000) until November 2030.
First Homes scheme (primary support)
Targeted at new-build purchases at discounted prices. Available for new builds or properties previously bought under the scheme.
Learn more about irst Homes scheme >
Regional options
Wales: Help to Buy equity loan scheme boosts deposit amounts for mortgage applications.
Social housing tenants: Right to Buy scheme allows purchase of your rented property at a discount.
Shared ownership
Government-backed scheme for those who can't afford full ownership:
- Purchase 25-75% of a property
- Pay rent on the remaining portion
- Housing association or private landlord owns the rest
Important: All schemes have eligibility criteria that must be met before purchase.
The first-time buyer conveyancing process
When purchasing your first property, it's important to understand the conveyancing process. This is the legal transfer of home ownership from seller to buyer, involving several important steps:
- Instructing a conveyancing solicitor - Ideally at the same time as making an offer
- Property searches - Legal checks on the property and surrounding area
- Contract review - Examining the draft contract from the seller's solicitor
- Exchange of contracts - The point at which the sale becomes legally binding
- Completion - When money is transferred and you receive the keys
First-time buyers often underestimate the importance of having an experienced conveyancing solicitor who understands their specific needs and can explain each step clearly.
How today's first-time buyers are different
Most first-time buyers are in their twenties to early thirties. This demographic expects modern service delivery from everyone involved in their purchase - mortgage brokers, lenders, estate agents, surveyors, and conveyancing solicitors.
The digital revolution
Technology has radically changed how this generation wants to do business.
Gone:
- Waiting for "snail mail" with forms and letters
- Mandatory face-to-face meetings
- Physical document signing
- Traditional "business hours" only
Expected now:
- Email and digital document transfer
- E-signatures for contracts and agreements
- Video calls when meetings are needed
- 24/7 access to information and updates
Beyond business hours
Today's buyers are digitally available around the clock. They expect the same from service providers - or at least want access to documents and progress updates anytime they choose.
Our response: Homeward Legal has invested in cutting-edge case management systems. Clients can view documents and monitor purchase progress 24/7. We're also open on Saturdays to accommodate busy schedules. Communication preferences and frequency are agreed upfront to manage expectations from day one.
Get expert first-time buyer support
Are you ready to take that first step onto the property ladder?
With April 2025's Stamp Duty changes, understanding your options and managing costs effectively is more critical than ever.
The experts at Homeward Legal will talk you through each stage of the process so that you know what is happening at any point and why and what your role is. They are well-versed in all aspects of the conveyancing process, providing a quality conveyancing service at a fee that is great value for money!
Call to discuss your plans and concerns to purchase your first home. You can also run a quick quote online and our friendly team will come back to you.
First-time buyer FAQ
What costs should first-time buyers budget for beyond the deposit?
Beyond your deposit, budget for conveyancing fees (£1,000-£1,500), survey costs (£400-£1,500 depending on type), mortgage arrangement fees, Stamp Duty Land Tax (if applicable), moving costs, and initial furnishing expenses.
How long does the first-time buyer process typically take?
From having an offer accepted to completion the conveyancing process typically takes 8-12 weeks, though this can vary depending on property chain complexity, mortgage approval time, and conveyancing issues.
Can I still get stamp duty relief as a first-time buyer?
No. As of April 1th, 2025, the first-time buyer Stamp Duty Land Tax relief has been removed. First-time buyers now pay stamp duty on properties over £300,000, which is the standard threshold. This recent change has added thousands to the purchase costs for many first-time buyers.
What surveys should first-time buyers consider?
At minimum, a Homebuyer's Report (Level 2) is recommended for most properties. For older homes or those with potential structural issues, a Building Survey (Level 3) provides more comprehensive protection.