First-Time Buyer Guide 2026/27 — Costs, Schemes & Tax

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By Rasika F.
Published July 2026 • 5 min read • PayToolkit
🏠 First-time buyer checklist

Use our free tools to check: Stamp duty | Mortgage affordability | Council tax band

Stamp duty for first-time buyers 2026/27

First-time buyers benefit from a significant stamp duty reduction in 2026/27. You pay no SDLT on the first £300,000 of your purchase price. On the portion from £300,001 to £500,000 you pay 5%. On properties over £500,000 the standard rates apply with no first-time buyer relief.

Property priceHome mover paysFirst-time buyer paysSaving
£200,000£1,500£0£1,500
£300,000£5,000£0£5,000
£400,000£10,000£5,000£5,000
£500,000£15,000£10,000£5,000

How much can you borrow?

Most mortgage lenders will lend up to 4.5 times your annual income, though some go up to 5.5 times for higher earners. You will typically need a minimum 5% deposit, though 10–15% gets you better mortgage rates.

Use our mortgage affordability calculator to see how much you can borrow based on your salary, deposit, and monthly outgoings.

All the costs to budget for

Check the council tax band before you buy

Council tax is an ongoing monthly cost that significantly affects your budget. A Band E property costs around £220/month in most of England — that's £2,640/yr. Always check the band of any property you are considering using our free council tax band checker before making an offer.

Frequently asked questions

How much stamp duty do first-time buyers pay?

First-time buyers pay no stamp duty on the first £300,000. On the portion from £300,001 to £500,000 they pay 5%. Above £500,000 standard rates apply with no relief.

What is the maximum first-time buyer stamp duty saving?

The maximum saving is £5,000 compared to a standard home mover on any property priced £300,000–£500,000.

What other costs should first-time buyers budget for?

Solicitor fees (£1,500–£3,000), survey (£400–£1,500), mortgage fee (£0–£2,000), removal costs, and council tax from completion date.

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