First-Time Buyer Guide 2026/27 — Costs, Schemes & Tax
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 price | Home mover pays | First-time buyer pays | Saving |
|---|---|---|---|
| £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
- Stamp duty: see table above
- Solicitor/conveyancing fees: £1,500–£3,000
- Survey: £400–£1,500 (basic to full structural)
- Mortgage arrangement fee: £0–£2,000 (many fee-free options available)
- Mortgage broker fee: £0–£500 (many brokers are free)
- Buildings insurance: required by most lenders from exchange
- Council tax: starts from your completion date — always check the band before buying
- Removal costs: £300–£1,500
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
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.
The maximum saving is £5,000 compared to a standard home mover on any property priced £300,000–£500,000.
Solicitor fees (£1,500–£3,000), survey (£400–£1,500), mortgage fee (£0–£2,000), removal costs, and council tax from completion date.