In short
- First-time buyers in England and Northern Ireland pay no stamp duty up to £300,000, but lose the relief entirely on homes above £500,000.
- Everyone buying with you must also be a first-time buyer, and must never have owned a home anywhere in the world, for the relief to apply.
- Your First Home, a government equity loan for first-time buyers of new builds in England, is expected to open for applications in February 2027.
- Plan for more than the deposit: reservation fee, legal fees, mortgage costs, removals and furnishing all add up.
Why new builds suit many first-time buyers
Buying your first home is a big step, and a new build takes some of the uncertainty out of it.
- No chain. You have nothing to sell and the builder is not buying anywhere, so nobody above or below you can hold things up.
- Schemes for new homes. Some help is only available on new builds, including the new Your First Home scheme and builder-backed schemes such as Deposit Unlock.
- Incentives. Builders often offer help such as a contribution to your deposit, stamp duty or legal fees. Treat these as builder-stated offers and get them in writing. New-build incentives shows where builders are offering them today.
- Lower bills, fewer repairs. New homes are usually far more energy efficient than older ones, and the builder must fix defects for the first two years.
- Protections. Builders registered with the New Homes Quality Code must follow rules on how they sell to you, and you can take an unresolved complaint to the New Homes Ombudsman Service.
There are trade-offs too. A new build often costs more than a similar second-hand home nearby, and if it is not finished you may wait months to move in. The new build or second-hand guide weighs them up.
How much deposit you need
The New Homes Quality Board's buyer guide says the deposit is usually at least 5% of the price, and a bigger deposit can open up more mortgage choices. On a £300,000 home, a 5% deposit is £15,000 and a 10% deposit is £30,000.
With a new build, you usually pay the deposit at exchange of contracts, which happens within weeks of reserving. The New Homes Quality Board's buyer guide says the deposit at exchange is usually 5% to 10% of the price. So have your deposit ready before you reserve, not just before you move.
Lenders set their own rules for new homes. A qualified, regulated mortgage adviser can tell you what applies to the home you want. The new-build mortgages guide explains the differences, and the first time buyer mortgages guide covers how much you could borrow and the deposit.
To see the price your income and deposit could reach, try the borrowing calculator. The cash you need calculator adds up the deposit, stamp duty and fees on a real home, less the builder's incentive. Both are an illustration, not advice.
Stamp duty relief for first-time buyers
In England and Northern Ireland, first-time buyers pay no stamp duty on the first £300,000 of the price. Above £500,000, the relief is lost completely and you pay the standard rates on the whole price.
On a £350,000 home, a first-time buyer pays £2,500 and a home mover £7,500.
| The part of the price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
Who counts as a first-time buyer
HMRC's rules say:
- you must never have owned a home, alone or with others, anywhere in the world
- if you are buying with someone else, each of you must be a first-time buyer
- you must intend to live in the home as your only or main residence
If your partner has owned a home before, even abroad, a joint purchase will not qualify. Check before you budget on the relief.
Scotland and Wales
Scotland has Land and Buildings Transaction Tax, with its own first-time buyer relief. On a £250,000 home, a first-time buyer in Scotland pays £1,500. Wales has Land Transaction Tax, which has no separate first-time buyer relief: on a £250,000 home, the tax is £1,500. The stamp duty calculator works out the tax in each nation, and the stamp duty guide covers when and how it is paid.
Schemes for first-time buyers
Scheme rules change, so each scheme page on NewHomeSearch holds the current rules in its source's own words. In short:
Your First Home
A new government scheme for first-time buyers of new-build homes in England, from developers taking part in the scheme. GOV.UK says you put down a deposit of at least 2.5% of the price, the government lends you 20% of the price as an equity loan, interest free for the first five years, and you take a mortgage for the rest. In the GOV.UK example, a £300,000 home is bought with a £7,500 deposit, a £60,000 equity loan and a £232,500 mortgage.
GOV.UK says the scheme is expected to open for applications in February 2027. Household income limits and local price caps apply. The loan is linked to the home's value, so what you repay can rise or fall. See Your First Home and the Your First Home calculator.
Shared ownership
You buy a share of the home and pay rent on the rest. GOV.UK says you can usually buy a share of between 25% and 75%, or as little as 10% on some homes, and that new builds are among the homes you can buy this way. See shared ownership.
First Homes
GOV.UK describes First Homes as a way for eligible first-time buyers in England to buy a home for 30% to 50% less than its market value. The home must be your only or main residence. See First Homes.
Lifetime ISA
A savings account for your first home or retirement. GOV.UK says you can pay in up to £4,000 a year and the government adds a 25% bonus, up to £1,000 a year. You must open it and pay in for the first time before you turn 40. There are rules on using it for a home, so read Lifetime ISA before you rely on it.
Other help
- The mortgage guarantee scheme: a government guarantee behind some low-deposit mortgages.
- Deposit Unlock and Own New Rate Reducer: builder-backed schemes on some new homes.
- Rent to Buy: rent a home below market rent while you save a deposit.
Help to Buy has closed in England, though GOV.UK says equity loans are still available in Wales. See what replaced Help to Buy or the full list of schemes.
The costs to plan for
The deposit is the biggest cost, but not the only one. The New Homes Quality Board's buyer guide gives these typical figures. Your own costs will vary.
| Cost | Typical amount (NHQB guide) | When |
|---|---|---|
| Reservation fee | £250 to £1,000 | When you reserve |
| Deposit | Usually 5% to 10% of the price at exchange | At exchange |
| Legal fees | Around £1,800 | At completion |
| Mortgage valuation | Up to £300, with some lenders | During your application |
| Pre-completion inspection | From £320, if you hire a professional | Before completion |
| Removals | £450 to £1,400 | Moving day |
| Buildings and contents insurance | Hundreds of pounds a year or more | From completion |
| Stamp duty | £2,500 on a £350,000 home for a first-time buyer | Within 14 days of completion |
Then think about the first months in your home. Check what the price includes: flooring, curtains, turf and some appliances may not be. Ask about service charges or estate management charges, and the expected council tax band, which registered builders must tell you before you buy. The full cost guide covers every cost.
Step by step: your first new build
- Save and check your credit. Lenders look at your income, spending and credit history.
- Get an agreement in principle. It shows roughly what a lender would lend and that you are a serious buyer.
- Check the schemes. Some, like Your First Home, are only with builders and lenders taking part.
- Search and view. Search new homes by place or near you. Ask which features in the show home are standard. The viewing guide has the questions to ask.
- Reserve. Sign the reservation agreement and pay the fee. With a registered builder, you have at least 14 days to cool off and get the full fee back.
- Instruct a solicitor and apply for your mortgage the same day. The deadline to exchange is short, usually about six weeks.
- Exchange contracts. Pay your deposit. From here, pulling out usually means losing it.
- Wait for the build, then the notice to complete. Usually at least 14 days' notice.
- Inspect the home. You have the right to check it yourself, or send a qualified inspector, before completion.
- Complete and move in. Your solicitor pays the balance and the stamp duty, and you get the keys.
The step-by-step guide explains each stage in detail.
Mistakes first-time buyers make
- Reserving before your money is ready. The exchange deadline comes fast. Have your deposit and an agreement in principle ready first.
- Using the builder's recommended solicitor without comparing. You are free to choose your own. Builders registered with the Code must tell you about any fee they get for a referral.
- Judging the home by the show home. Ask for the specification of your plot in writing.
- Ignoring ongoing charges. Estate or service charges are a cost every year you live there.
- Overlooking the price. Compare it with similar homes nearby using the new-build premium tool, and remember that your lender will value it too.
- Booking removals too early. Completion dates on unfinished homes move. The firm date is usually confirmed only about two weeks ahead.
Questions people ask
Can first-time buyers get a new build with a 5% deposit?
Often, yes, though each lender sets its own rules for new homes. Your First Home, expected to open in February 2027, will let eligible first-time buyers put down at least 2.5% on new-build homes from developers taking part.
Do first-time buyers pay stamp duty on new builds?
Not on the first £300,000 in England and Northern Ireland, as long as the price is no more than £500,000 and everyone buying is a first-time buyer. New builds are taxed in the same way as any other home.
Is Help to Buy still available?
Not in England, where it has closed to new applications. GOV.UK says equity loans are still available in Wales. Your First Home is a new equity loan for first-time buyers of new builds in England.
When does Your First Home open?
GOV.UK says the scheme is expected to open for applications in February 2027, with pre-registration expected by the end of 2026.
Can I use a Lifetime ISA on a new build?
A Lifetime ISA can be used towards a first home, including a new build, but there are rules on the price, timing and how the money is paid. Check the Lifetime ISA page before you reserve.
Do I still count as a first-time buyer if my partner owned a home before?
Not for stamp duty relief. HMRC requires each buyer to be a first-time buyer who has never owned a home anywhere in the world.
What happens to builder incentives if I use a scheme?
Builders disclose incentives on a standard UK Finance form, which your lender can see. Schemes and lenders can limit what incentives you can take, so check with the builder and your mortgage adviser in writing.
Sources
- GOV.UK: Your First Homegov.uk
- Welsh Government: Land Transaction Tax rates and bandsgov.wales
- HMRC: Stamp Duty Land Tax Manual SDLTM29811, first-time buyers relief conditionsgov.uk
- GOV.UK: Shared ownership homesgov.uk
- GOV.UK: First Homes schemegov.uk
- GOV.UK: Lifetime ISAgov.uk
- NHQB: Your guide to buying a new build homenhqb.org.uk
- NHQB: New Homes Quality Code, version 2 (March 2026)nhqb.org.uk
A guide, not advice. NewHomeSearch is independent: it does not sell homes, arrange mortgages or take payment from builders. Rules change, so the stamp duty figures and live counts here come from the dated tables and today's listings. Take independent legal and financial advice before you commit.