Buying your first home is very exciting, but there are plenty of potential pitfalls along the way that can leave you out of pocket if you’re not prepared. Here’s your go-to checklist to navigate the process confidently.
By planning ahead, comparing quotes and understanding things like first-time buyer stamp duty and conveyancing costs, you can avoid costly mistakes and step onto the property ladder with peace of mind.
What you need to know as a first-time home buyer
Stamp duty for first-time buyers
Stamp duty land tax (SDLT) is a tax payable when buying property or land in England and Northern Ireland. It’s paid by the buyer on completion of the purchase, and the amount you pay depends on the sale price of the property. But not everyone has to pay stamp duty – such as some first-time buyers. This is because of first-time buyer stamp duty relief.
Since 1 April 2025, the stamp duty rates for first-time buyers are as follows:
- You’ll pay no stamp duty if the property costs £300,000 or less.
- If the property costs over £300,000, you’ll pay 5% on the portion between £300,001 and £500,000.
- If the property costs over £500,000, you’ll have to pay stamp duty at the standard rates.
So, if you’re buying your first home and it costs £275,000, you won’t pay any stamp duty at all. If it costs £400,000, you’d pay 5% on the £100,000 above the £300,000 stamp duty threshold, meaning you’d pay £5,000.
First-time buyer conveyancing costs
Conveyancing is the name of the legal process that ensures the correct transfer of property ownership. You’ll need to use a conveyancing solicitor to be sure it’s all done by the book, so make sure you’ve factored in the costs associated with this.
Legal conveyancing fees are usually the same whether you’re a first-time buyer or you’ve bought before – they are usually determined by the price of the property. However, because a first-time buyer will not also have a property to sell, conveyancing costs tend to be lower for them than for someone moving home.
Expect to pay anywhere between £1,000 to £3,000 for conveyancing, with costs potentially rising further in London. Disbursements and expenses are usually not included in the legal fees – these are extra costs you’ll need to pay to cover services that are provided by a third party, like searches on the property.
Other costs for first-time buyers to be aware of
- Mortgage valuation – if you’re taking out a mortgage on the property, your lender will typically charge to conduct a valuation. Expect to pay around £100 to £300.
- Mortgage arrangement fees – if you’re arranging a mortgage through a broker, there might be a fee to pay. This could be anything from 0.35% to 1% of the total loan you’re taking out.
- Survey costs – if you choose to conduct a survey on the property you’re buying, you’ll need to factor in these costs. They’ll vary according to the depth of survey you choose, and usually come in between £500 and £1,500.
Get an instant conveyancing estimate or contact Batt Broadbent for legal advice on buying your first home.