Exploring the Advantages of Being a First-Time Home Buyer
Buying your first home is a pretty big deal, but it can all feel a little overwhelming to begin with. The thing is, most first-time buyers have quite a few things working in their favour, such as avoiding the chain-related headaches that can slow so many other purchases down, and first-time buyer relief on your Stamp Duty.
First-time buyers affect more of the market than you might think, making up 54% of purchases in 2024 according to Halifax.
Fully understanding the advantages of being a first-time home buyer can save you a lot of time and money. So, let’s dive in and see what the benefits are when you’re putting your very first foot on the housing ladder.
What are the advantages of being a first-time home buyer?
Agreeing to buy your first house is one of the most ‘grown-up’ things that a person can do, so it can be a little scary. There’s choosing the right mortgage, stamp duty costs to think about, setting up your home utilities, buying all the furniture you’re going to need, and more.
However, even though it might not feel like it when you first make things official, there are quite a few advantages of being a first-time home buyer, which puts you in a strong position. They include:
- You’ve got no property chain behind you, which majorly reduces the risk of delays or the whole thing falling through
- You’ll usually have more flexibility around completion dates, since you're not waiting on another sale to go through
- You get access to incentives like the First Homes Scheme that others don’t
- You’re usually seen by sellers as the safer, more straightforward option
- You’re in a stronger negotiating position when up against buyers who are stuck in long chains
- You’ve got the freedom to focus entirely on the purchase rather than juggling a sale at the same time
Of course, there are still hurdles to clear when buying for the first time, but ask any seller, and they’ll tell you, you’re in an enviable place as a first-timer. As such, it should help you have a better, stress-free move.
What help is available for first-time buyers?
Saving for a deposit is usually the biggest obstacle for people trying to get onto the property ladder. As a result, one of the many advantages of being a first-time home buyer is the range of schemes introduced by the government to allow people to get their hands on their own place.
An example we mentioned earlier is the First Homes Scheme, which lets eligible buyers purchase newly built homes at a minimum 30% discount below market value, making properties more affordable for local buyers and key workers.
Other schemes worth knowing about include:
Lifetime ISA (LISA)
Anyone between 18 and 39 can use one to save for their first home. The government tops up whatever you put in by 25%, up to a maximum of £4,000 a year.
Shared Ownership
Here, you buy a slice of a property rather than the whole thing (somewhere between 25% and 75%), and pay rent on the bit you don't own.
Mortgage Guarantee Scheme
This scheme makes it easier to get a mortgage with a smaller deposit, sometimes as low as 5%. Find out.
For a lot of buyers, schemes like these are what make buying a house possible.
How To Buy A House Without Killing Anyone could be the difference in every mover’s dream: buying and moving into your new home stress-free...
OR: stress, missed deadlines, legal disasters, building defects, and possibly the collapse of the whole transaction.
(Costing you a small fortune, a head full of grey hairs, and driving you to threaten the life of your solicitor, lender, co-owners, family, partner, or some combination of all five).
£9.99
Do I have to pay stamp duty as a first-time buyer?
Unfortunately, yes. You do. Stamp Duty Land Tax in England and Northern Ireland is one of those extra costs you have to think about, but only when the house you’re buying is worth over a set amount. It can add a sizeable amount to the total cost, so you need to factor it in.
The great thing if you’re buying your first home is that you benefit from a higher tax-free threshold, meaning stamp duty only starts once the property price passes a certain level.
Portion of Property Price | First-Time Buyer | Standard Buyer | The Difference? |
|---|---|---|---|
Portion of Property Price £0 – £125,000 | First-Time Buyer 0% | Standard Buyer 0% | The Difference? £0 |
Portion of Property Price £125,001 – £250,000 | First-Time Buyer 0% | Standard Buyer 2% | The Difference? £2,500 |
Portion of Property Price £250,001 – £300,000 | First-Time Buyer 0% | Standard Buyer 5% | The Difference? £2,500 |
Portion of Property Price £300,001 – £500,000 | First-Time Buyer 5% | Standard Buyer 5% | The Difference? £0 |
Portion of Property Price Total | First-Time Buyer - | Standard Buyer - | The Difference? £5,000 |
So, as we can see, one of the biggest advantages of being a first-time home buyer is that you’ll save as much as £5,000 in stamp duty, which is not to be sniffed at.
What are the disadvantages of being a first-time buyer?
While there are some clear perks, there are still some disadvantages of being a first-time home owner. Understanding these challenges is key to ensuring your first purchase is a successful long-term investment.
The ‘chain-free’ paradox
Being chain-free can appeal to sellers, but it can also put you in direct competition with cash buyers and buy-to-let investors. First-time buyers can be outbid because cash buyers can move faster and aren’t reliant on mortgage approvals.
Low equity and high interest rates
Typically, first-time buyers will have smaller deposits, which means a higher Loan-to-Value ratio (LTV). Often, this results in higher interest rates than for existing homeowners who already have equity to put down.
A smaller deposit can also mean higher monthly repayments and a greater risk of negative equity if house prices fall. Increasingly, first-time buyers are dependent on gifted deposits to improve their LTV.
Strict lending criteria
First-time buyers won’t have an established mortgage history, so the underwriting process may be stricter. Even a minor credit blip or a non-standard property type may lead to rejection, where a more experienced homeowner might still be approved.
- online checklists
- videos
- free downloads
- useful tips
Ready to get on the property ladder? Talk to our team
Buying your first home can feel like a huge step, but as we’ve seen, first-time buyers often have more going for them than they realise. From stamp duty savings to being chain-free, there are several reasons why getting onto the property ladder should be smoother for you than most.
At SAM Conveyancing, our team is experienced in helping first-time buyers navigate the legal side of the process. We completely understand how daunting things can feel, and we’ll make it our business to ensure everything goes smoothly.
- Fixed, competitive legal fees with no hidden costs.
- Expert conveyancing solicitors with proven local knowledge.
- No Sale, No Fee protection for your transaction. Terms apply.
- On 99% of mortgage lender panels.
- Fast completions.
- We can solve any property challenge.
Frequently Asked Questions
Andrew Boast FMAAT is a qualified accountant, conveyancing specialist and author with over 25 years of experience in the UK property sector. Since beginning his career in 2000 within established SRA and CLC-regulated conveyancing solicitor firms, Andrew has overseen the legal journeys of more than 75,000 clients.
He is the author of the property guide 'How to Buy a House Without Killing Anyone' and a frequent contributor to mainstream UK media on legislative updates, property law, first-time buyer guides, conveyancing best practices, and stamp duty changes. Andrew specialises in resolving complex title issues, property conflict disputes, and property tax options, streamlining the enquiry process to reduce transaction times and maintaining a client-friendly focus.
Caragh Bailey is a Lead Property Content Specialist at SAM Conveyancing, having joined the firm in 2020. With a portfolio of over 150 technical conveyancing, house survey and mortgage guides, she has become a primary authority on the end-to-end sale and purchase process.
Caragh specialises in complex legal workflows, including Help to Buy redemptions, equity transfers, shared ownership structures, trust deeds for tax planning, and joint ownership disputes. Her expertise extends to leasehold reform and RICS home surveys, where she provides clear, factual guidance on independent legal advice for specialist mortgage products and intricate ownership structures.
