Help Available to First-Time Buyers in England

Buying your first home is an exciting milestone, but it can also feel overwhelming, especially with rising house prices, mortgage affordability checks and the challenge of saving a deposit. The good news is that there is a wide range of help available to first time buyers in England, particularly when purchasing a new build home. From government backed schemes and tax relief to specialist mortgage products, first time buyers have more support options than ever before.

In this guide, we explain the main first time buyer schemes in England, how they work and how they can help you get onto the property ladder sooner.

Who is considered a first time buyer?

In England, you are classed as a first time buyer if you have never owned a property before, either in the UK or abroad. This includes properties bought outright, with a mortgage or inherited. Many government schemes and mortgage products are specifically designed for first time buyers, so meeting this definition is important.

If you are buying with someone else, both buyers must be first time buyers to qualify for most schemes and stamp duty relief.

First Homes Scheme

The First Homes scheme is a government initiative designed to help local people and key workers buy a home at a discounted price.

Under the scheme, selected new build homes are sold at a discount of at least 30% compared to the open market value. In some areas, discounts can be as high as 40% or 50%.

Key features of the First Home Scheme

• Available only in England
• You must be a first time buyer aged 18 or over
• The home must be your main residence
• Your household income must usually be £80,000 or less (or £90,000 or less in London)
• You need a mortgage covering at least 50% of the discounted purchase price

One of the major benefits of the First Homes scheme is that the discount remains with the property when it is sold again. This helps future first-time buyers and keeps homes affordable in the long term.

Lifetime ISA (LISA)

A Lifetime ISA is one of the most popular ways for first time buyers to save for a deposit.

With a Lifetime ISA, you can save up to £4,000 each tax year and the government adds a 25% bonus, up to £1,000 per year. This makes it an extremely effective tool for boosting your deposit savings.

Lifetime ISA rules to be aware of:

• You must be aged 18 - 39 to open an account
• The account must be open for at least 12 months before you can use it to buy a home
• The property must cost £450,000 or less
• The home must be your first purchase and your main residence

The bonus is paid directly towards your purchase via your solicitor or conveyancer. For buyers planning ahead, a Lifetime ISA can make a significant difference to how quickly you can afford a deposit on a new home.

Stamp Duty Relief for First Time Buyers

One of the biggest upfront costs when buying a home is Stamp Duty Land Tax (SDLT). Fortunately, first time buyers in England benefit from generous stamp duty relief.

Current first time buyer stamp duty rates:

• 0% stamp duty on the first £425,000 of the purchase price
• Relief applies to properties priced up to £625,000
• If the property costs more than £625,000, standard stamp duty rates apply

This relief can save first time buyers thousands of pounds, making it easier to cover legal fees, moving costs and furnishings for your new home.

Shared Ownership

Shared Ownership is a popular option for buyers who cannot afford to purchase a home outright.

With Shared Ownership, you buy a share of a property, usually between 25% and 75%, and pay rent on the remaining share owned by a housing association. You only need a deposit on the share you are buying, which significantly reduces the upfront cost.

Benefits of Shared Ownership:

• Lower deposit requirements
• Smaller mortgage
• Opportunity to buy more shares later through a process called staircasing
• Often available on new build homes

Shared Ownership schemes typically have income limits and local eligibility criteria, so it’s important to check the details carefully before applying.

Mortgage Guarantee and Low Deposit Mortgages

Saving a large deposit can be one of the biggest barriers for first time buyers. To address this, the government supports lenders through mortgage guarantee schemes, encouraging them to offer 95% loan to value mortgages.

This means eligible buyers may be able to purchase a home with just a 5% deposit.

In addition to government-backed guarantees, many lenders now offer first time buyer-friendly products, including:

• Low-deposit mortgages
• Cashback incentives
• Reduced fees for first time buyers
• Flexible affordability assessments

A mortgage broker can help identify the most suitable mortgage deals based on your income, deposit and credit profile.

Buying a New Build as a First Time Buyer

New build homes are particularly attractive to first time buyers, thanks to their energy efficiency, modern layouts and eligibility for government schemes.

Advantages of buying a new build:

• Lower running and maintenance costs
• Energy efficient design
• Fewer immediate repairs
• Access to first time buyer schemes and incentives
• Longer warranties for peace of mind

For many buyers, a new build home provides a smoother and more predictable route onto the property ladder. Find your new home here!