First Time Buyer Stamp Duty

When you are doing your sums before buying your first home don’t forget to include stamp duty. This tax can add thousands to the price of buying a home, but the good news is first time buyer stamp duty relief could eliminate your tax bill.

Angela Kerr Director, Editor

Do first time buyers pay stamp duty?

First time buyers may pay less or even no stamp duty thanks to first time buyer stamp duty relief. This relief means you don’t pay stamp duty on the first £300,000 in England and Northern Ireland. By comparison, for regular homebuyers this threshold is £125,000.

However, you can’t claim first time buyer stamp duty relief on properties over £500,000 or if you’re buying an investment property.

What is stamp duty?

Stamp Duty, or Stamp Duty Land Tax (SDLT) to give its full name, is the tax levied on the purchase of property and land in England and Northern Ireland. In Wales it is known as Land Transaction Tax (LTT) and in Scotland it’s Land and Buildings Transaction Tax (LBTT). They all amount to the same thing – you have to pay a percentage of the purchase price of your property in tax when you complete on your purchase.

What is first time buyer stamp duty relief in 2025?

First time buyer stamp duty relief is a measure designed by government to make it easier for people get on the property ladder. If you’re a first time buyer in England or Northern Ireland and you’re buying a home up to £300,000, you do not have to pay stamp duty. While if the property is worth £300,001 to £500,000 you’ll pay 5% stamp duty on the value above £300,000. You cannot claim the relief on properties over £500,000 and standard stamp duty rates will apply.

First time buyer stamp duty rates in England & NI

First time buyer stamp duty relief applies if you, as well as, anyone you are buying with are purchasing your first home, it is not an investment property and the value is £500,000 or less.

First time buyer stamp duty costs example

Here’s an example of how much first time buyer stamp duty you’ll pay if you buy a house for £350,000 in England after 1 April 2025.

• 0% on the first £300,000 = £0
• 5% on the remaining £50,000 = £2,500
• Total stamp duty bill = £2,500

First time buyer stamp duty costs for different house prices

Here’s how much stamp duty you’ll pay at different house prices if you buy in England after 1 April 2025. Note that standard stamp duty rates apply on properties costing over £500,000*.

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Which first time buyers will pay stamp duty in 2025?

The UK’s average property price was £268,548, according to the UK Government’s House Price Index for January 2025. If you’re a first time buyer, you won’t pay any stamp duty on a property of this value.

However, as we know, house prices vary dramatically around the UK. Research by Halifax found the average first time buyer in London paid £511,514 in 2024. You cannot claim first time buyer stamp duty relief on properties over £500,000. So the average first time buyer in London would pay standard stamp duty rates which would be £15,576 on a property of this value.

First time buyer stamp duty changes April 2025

First time buyer stamp duty relief changed on 1 April 2025. Before this date, first time buyers could avoid stamp duty on the first £425,000 of their property and claim first time buyer stamp duty relief on properties worth up to £625,000.

First time buyer stamp duty rates in England & NI until 31st March 2025:

First time buyer stamp duty rates in Scotland

If you are buying your first home in Scotland, then you’ll pay no stamp duty (LBTT) if it is worth less than £175,000.

First time buyer stamp duty rates in Scotland are applied as follows:

Find more information on the Revenue Scotland website.

First time buyer stamp duty rates in Wales

Unfortunately, in Wales there is no first time buyer stamp duty relief and you’ll pay the same LTT bill regardless of whether this is your first home or not. But, normal stamp duty does not apply if the purchase price is £225,000 or less. LTT is tiered based on the value of your home, so here’s what you’ll pay:

Find more information on Land Transaction Tax rates and bands on the Welsh Government’s website.

First time buyer stamp duty calculator

To work out exactly how much stamp duty you will pay as a first time buyer, use our stamp duty calculator.

Who counts as a first-time buyer?

To qualify as a first-time buyer in the taxman’s eyes you must never have owned, or had an interest in, a residential property in the UK or overseas. This includes both freehold and leasehold property.

And to qualify for first time buyer stamp duty relief, the home must be your only or main residence. This means you cannot claim first time buyer stamp duty relief if you’re buying a Buy To Let.

I inherited a house, am I a first-time buyer?

If you have inherited a property, you are not considered a first time buyer. Since you own the house you inherited, you are no longer classed as a first-time buyer despite the fact you’ve never actually purchased a property.

I own a share of another property, am I a first-time buyer?

If your name is on the deeds of another property, even if you don’t own 100% of it, you don’t qualify as a first-time buyer.

Do both people need to be first time buyers?

If you’re buying a house with someone else, you can only qualify for first time buyer stamp duty relief if you’re both first time buyers.

So if one of you is a first time buyer but the other isn’t, and you are both going to be named on the deeds of the new property, then unfortunately you won’t qualify for the first time buyer stamp duty relief. In this instances, standard stamp duty rates will apply.

The only way you could get around this would be to buy the property only in the name of the person who is a first-time buyer. Please note though that if you are married, or in a civil partnership, you are classified as one unit by the taxman, so you won’t get first-time buyer relief in any circumstances if one of you has already owned a property.

Also, if you go down this path be aware that if you are buying with a mortgage then this will affect how much you can borrow as the affordability calculations will be based on only one person’s income. A mortgage broker could help you work out if that is going to be an option. There will also be legal implications so do seek independent legal advice.

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Stamp duty if you’re not a UK resident

The rules around first time buyers and stamp duty are different if you’re not classed as a UK resident. You’ll need to have been in the UK for 183 days in the 12 months leading up to your purchase.­­

And if you don’t meet this criteria, you’ll generally face a 2% surcharge on your stamp duty rate. See more advice on stamp duty rates as a non-resident on the government’s website.

Frequently Asked Questions

Got more stamp duty questions?

If you think you may have to pay stamp duty (double check using our stamp duty calculator) then our complete stamp duty guide should answer any further questions you have.

How else can I get help getting on the property ladder?

See our guide to buying your first home where we simplify the essential first steps and what help you can access to enable you to buy your first home.  You may also find our guide to first time buyer mortgages a good starting point.

The government is keen to help first time buyers so there are a number of initiatives that could help you save for and then buy your first home.

There are Lifetime ISAs that first-time buyers can use to save for a deposit. A Lifetime ISA, or LISA, is a type of account designed to encourage people to save for their first home or their retirement. You can save up to £4,000 a year. The government will top this up with a 25% bonus, paid monthly.

There are also a number of government schemes that can give you a leg-up onto the housing ladder including Shared Ownership. Find out more about the schemes available with our overview of the government’s first-time buyer schemes.