At a glance
- First-time buyers in England pay no stamp duty up to £300,000 and 5% on the part from £300,001 to £500,000. Above £500,000 there is no relief at all.[1][2]
- A Lifetime ISA adds a 25% government bonus (up to £1,000 a year) on up to £4,000 you save, if the home costs £450,000 or less. The government has said a new first-time buyer ISA will replace it once available.[3][4]
- Schemes such as Shared Ownership, First Homes and the Mortgage Guarantee Scheme can help with a smaller deposit or a lower price.[5][6][7]
- Help to Buy equity loans and Help to Buy ISAs are closed to new applicants.[8][9]
Rules and figures last checked October 2026.
Stamp duty for first-time buyers
If you have never owned a home, anywhere, you can claim first-time buyer relief on Stamp Duty Land Tax in England and Northern Ireland.
| Part of the price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Over £500,000 | No relief: standard rates apply to the whole price |
HMRC’s manual records these thresholds as applying from 1 April 2025, after a temporary higher set (0% to £425,000, 5% to £625,000) that ran from 23 September 2022 to 31 March 2025.[2] The government’s rates page says that if the price is over £500,000, you cannot claim the relief.[1]
Saving for a deposit
- Lifetime ISA. You can pay in up to £4,000 a year until you are 50, and the government adds a 25% bonus, up to £1,000 a year. The first payment must be made before you turn 40. To use it for a first home, the property must cost £450,000 or less, at least 12 months must have passed since your first payment, and a conveyancer or solicitor must act.[3][10] Taking the money out for any other reason brings a 25% charge.[11]
- What is changing. HM Treasury consulted on a “First Time Buyer ISA” between 22 June and 18 August 2026 and says that, once available, it will be offered in place of the Lifetime ISA. The government has not yet published the outcome, so check the current rules before you open one.[4]
- Help to Buy ISAs can no longer be opened.[9]
There is no official “typical” deposit, and what you need depends on the lender and the scheme. The figures that do exist are below, and our mortgages guide explains how lenders decide.
Schemes that can help
| Scheme | How it helps | Key rules |
|---|---|---|
| Shared Ownership | Buy a share of a home, usually 25% to 75% (10% on some), and pay rent on the rest.[5] | Household income £80,000 or less (£90,000 in London). Deposit usually 5% to 10% of the share you buy. Homes are leasehold.[5] |
| First Homes | A new-build home 30% to 50% below its market value.[6] | First-time buyers aged 18 or over, with a mortgage for at least half the price. Household income £80,000 or less (£90,000 in London).[6] |
| Mortgage Guarantee Scheme | A government guarantee that lets lenders offer 91% to 95% loan-to-value mortgages, so a deposit of 5% to 9%.[7] | Permanently available from July 2025. Repayment mortgages only, not shared ownership, and lenders choose whether to take part.[7][12] |
| Help to Buy: Equity Loan | Closed to new applications.[8] | Not available. |
Which schemes you can actually use depends on what is being built or sold near you, so ask about them when you register your search. Shared ownership homes are leasehold, so read our leasehold and freehold guide before you commit.
Your next steps
- 1
Work out what you can afford
Use our mortgage and stamp duty calculators and read how mortgages work.
- 2
Understand the whole process
See how buying works, from offer to completion.
- 3
Plan for the other costs
Surveys, searches and legal fees add up. Our surveys and searches guide covers what to expect.
- 4
Tell us what you are looking for
Register your search and we will let you know when something suitable comes up.
Sources
Every figure and rule above comes from one of these, read in October 2026. The dates are the ones each publisher shows as when the page was last updated.
- [1]Stamp Duty Land Tax: residential property rates (opens in a new tab)GOV.UK
- [2]Stamp Duty Land Tax Manual: first-time buyers relief rates (SDLTM29815) (opens in a new tab)GOV.UK (HM Revenue and Customs) · page updated 1 September 2026
- [3]Lifetime ISA (opens in a new tab)GOV.UK
- [4]First Time Buyer ISA consultation (opens in a new tab)GOV.UK (HM Treasury) · page updated 29 June 2026
- [6]First Homes scheme (opens in a new tab)GOV.UK
- [7]2025 Mortgage Guarantee Scheme (opens in a new tab)GOV.UK (HM Treasury) · page updated 15 July 2025 (published)
- [8]Help to Buy: Equity Loan buyer’s guide (opens in a new tab)GOV.UK · page updated 16 March 2023
- [9]Help to Buy ISA (opens in a new tab)GOV.UK
- [10]Lifetime ISA withdrawals for a first-time residential purchase (opens in a new tab)GOV.UK · page updated 10 April 2024
- [11]Withdrawing money from your Lifetime ISA (opens in a new tab)GOV.UK
- [12]2025 Mortgage Guarantee Scheme rules (opens in a new tab)GOV.UK (HM Treasury) · page updated 3 July 2025
This is a general guide to schemes and rules in England, not financial or tax advice. Schemes change, and your own circumstances decide what you can claim, so check the sources below and speak to a regulated mortgage adviser before you commit.