Guide to First-Time Buyer Benefits & Government Schemes

Buying your first home comes with more support than many people realise. Between tax relief, government-backed schemes and lender options for buyers with smaller deposits, there’s a genuine financial case for getting on the ladder sooner rather than later.

But before you start viewing homes, it’s worth understanding exactly what you’re entitled to as a first time buyer, and how each benefit works.

What counts as a “first-time buyer”?

To qualify as a first-time buyer, you (and anyone you’re buying with) must never have owned a residential property before. That includes anywhere in the world. You also can’t have ever had a share of a property, whether purchased or inherited.

This definition applies consistently across stamp duty relief, the Lifetime ISA, and most first-time buyer government schemes. It’s worth confirming your position early with your solicitor or mortgage adviser, particularly if your circumstances are slightly unusual (for example, inherited property or a previous overseas purchase).

Stamp duty relief for first time buyers

If you’re buying in England or Northern Ireland, first-time buyer relief means you pay:

No Stamp Duty Land Tax (SDLT) on the first £300,000 of your purchase price
5% on the portion between £300,001 and £500,000

If the property costs more than £500,000, the relief doesn’t apply at all and standard rates are charged on the full amount.

Here’s a breakdown of SDLT rates for reference*:

Property price	SDLT rate
Up to £125,000	0%
£125,001 to £250,000	2%
£250,001 to £925,000	5%
£925,001 to £1.5 million	10%
£1.5 million and above	12%

*Accurate at the time of publishing.

It’s worth keeping these thresholds in mind when setting your budget. You don’t want to receive an unexpected SDLT bill when you’re already paying a lot for your deposit, solicitors’ costs, moving fees, and so on.

Find out more about first-time buyers paying stamp duty.

Government help for first time buyers

Two national schemes are worth knowing about alongside stamp duty relief:

The First Homes scheme	The Lifetime ISA (LISA)
Offers a discount of at least 30% on a home’s market value. Applies to either a new build from a developer, or a resale bought through an estate agent from a previous First Homes buyer. To qualify, your household income must be under £80,000 a year (£90,000 in London), and the discounted price must not exceed £250,000 (£420,000 in London). The discount stays with the property permanently, passing to each future eligible buyer.	Lets you save up to £4,000 a year towards your first home, with the government adding a 25% bonus on top, up to £1,000 annually. Available for property purchases up to £450,000. *Note:* The government has opened a consultation on a replacement First Time Buyer ISA, but existing and new ISAs remain fully usable in the meantime.

The First Homes scheme

The Lifetime ISA (LISA)

Offers a discount of at least 30% on a home’s market value.
Applies to either a new build from a developer, or a resale bought through an estate agent from a previous First Homes buyer.
To qualify, your household income must be under £80,000 a year (£90,000 in London), and the discounted price must not exceed £250,000 (£420,000 in London).
The discount stays with the property permanently, passing to each future eligible buyer.

Lets you save up to £4,000 a year towards your first home, with the government adding a 25% bonus on top, up to £1,000 annually.
Available for property purchases up to £450,000.

Note: The government has opened a consultation on a replacement First Time Buyer ISA, but existing and new ISAs remain fully usable in the meantime.

Low deposit mortgage options

The government offers a Mortgage Guarantee Scheme, which supports buyers with a deposit as small as 5% on properties worth up to £600,000.

The scheme works by giving your lender a government-backed guarantee rather than reducing what you borrow. So you still go through the usual affordability and credit checks, but it significantly widens the pool of 95% loan-to-value mortgages available.

FAQs about first-time buyer benefits

What are the benefits of being a first-time buyer?

As a first time buyer, you’re not waiting on a sale to complete before you can proceed, which means fewer delays, less risk of the purchase falling through, and often a faster, less stressful path to completion.

This is one of the reasons developers and sellers frequently favour first time buyers, and it can also strengthen your position when you want to negotiate on price or ask for extras to be included.

How much could I save with first-time buyer stamp duty relief?

If you’re buying at or below £300,000, you’ll pay no stamp duty at all as a first time buyer. Above that, relief is still worth up to £5,000 compared to standard rates. This amount is the maximum saving on a property priced at £500,000 (the point at which the relief stops applying altogether).

Does Genesis Homes offer schemes to help first-time buyers?

Yes, Genesis Homes offers financial support for first-time buyers (and those moving from their current owned property into a new Genesis development), including:

Find the full details in our guide on ways to buy a property with Genesis Homes.

Get on the property ladder with Genesis Homes

We know how hard it is for first-time buyers to get on the property ladder. That’s why we have a range of schemes that sit alongside these government benefits to make that first step more achievable.

If you’re ready to see what’s available and take the first step towards becoming a homeowner, why not browse our latest new build homes? If you see something you like, simply get in touch with the team for more information or to book a viewing.