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Things To Think About When Buying Your First Home

First-time buyers in England currently benefit from a Stamp Duty Land Tax nil-rate band up to £300,000 on properties costing no more than £500,000, under Schedule 6ZA of the Finance Act 2003. The Help to Buy Equity Loan is closed; the Lifetime ISA, with its 25% government bonus of up to £1,000 a year, is the main government-backed savings incentive still open. Thorough financial preparation and early instruction of a conveyancing solicitor are the most effective ways to make the purchase go smoothly.

Key Points

  • From 1 April 2025, the Stamp Duty Land Tax nil-rate threshold for first-time buyers dropped from £425,000 to £300,000, with relief only available on purchases up to £500,000; buyers paying between £300,001 and £500,000 pay 5% on that portion.
  • The Help to Buy Equity Loan scheme closed to new applicants on 31 October 2022 and is no longer available; the current savings option for first-time buyers is the Lifetime ISA, which offers a 25% government bonus on up to £4,000 per year.
  • A Lifetime ISA can only be used towards a property costing £450,000 or less, and the account must have been open for at least 12 months before you withdraw funds for a purchase.
  • The conveyancing process typically takes 12 to 16 weeks from offer acceptance to completion, and instructing a solicitor at the earliest opportunity reduces delays.
  • Getting an Agreement in Principle before you start viewing properties, commissioning an independent survey, and budgeting accurately for all purchase costs are the three practical steps that most reduce the risk of a purchase falling through.

Introduction

Buying a first home involves legal, financial and practical steps that often happen at the same time, and for buyers in and around Arnold and Nottingham, understanding each stage before you begin makes the difference between a smooth purchase and a stressful one.

The rules on stamp duty and government savings schemes have changed substantially since 2022. Some well-known schemes, including the Help to Buy Equity Loan, no longer exist. The guidance below reflects the position as at June 2026.

Stamp Duty Land Tax After 1 April 2025

Stamp Duty Land Tax (SDLT) is charged on the purchase of residential property in England and Northern Ireland under Part 4 of the Finance Act 2003. First-time buyers benefit from a specific relief set out in Schedule 6ZA of that Act, inserted by the Finance Act 2018.

From 1 April 2025, those thresholds changed. Prior to that date, the nil-rate band for first-time buyers was £425,000 and relief was available on purchases up to £625,000. The Stamp Duty Land Tax (Temporary Relief) Act 2020 had temporarily raised general SDLT thresholds; those temporary measures expired and, from 1 April 2025, the rates reverted. For first-time buyers, the thresholds now stand as follows:

  • 0% on the first £300,000
  • 5% on the portion from £300,001 up to £500,000
  • If the purchase price exceeds £500,000, the first-time buyer relief is not available at all, and standard residential rates apply throughout

To illustrate the practical impact: suppose a first-time buyer in Arnold purchases a property for £340,000. Under the current rules, they pay no SDLT on the first £300,000 and 5% on the remaining £40,000, producing a tax charge of £2,000. The same purchase before 1 April 2025 would have attracted no SDLT at all.

Both buyers must be first-time buyers for the relief to apply to a joint purchase. A “first-time buyer” is defined in paragraph 6 of Schedule 6ZA as an individual who has not previously been a purchaser in a land transaction whose main subject-matter was a major interest in a dwelling, whether in the UK or elsewhere. Your conveyancing solicitor will confirm eligibility and file the SDLT return on completion.

Saving for a Deposit with the Lifetime ISA

The Help to Buy Equity Loan, which had allowed eligible first-time buyers to borrow up to 20% of the purchase price of a new-build home interest-free for five years, closed to new applications on 31 October 2022. No equivalent equity loan scheme has replaced it.

The principal government-backed savings vehicle for first-time buyers is now the Lifetime ISA. You can open one if you are aged between 18 and 39. You may contribute up to £4,000 per tax year, and the government adds a 25% bonus (up to £1,000 per year) on top of your contributions. The £4,000 annual Lifetime ISA limit counts towards your overall ISA allowance, which is £20,000 for the 2026/27 tax year. You can hold the Lifetime ISA as cash, as stocks and shares, or a combination.

To use a Lifetime ISA towards a first home, the property must cost £450,000 or less and you must purchase with a residential mortgage (the scheme is not available to cash buyers or buy-to-let purchasers). You must have held the account for at least 12 months before using it for a purchase. If you withdraw for any other reason before age 60, the government levies a 25% withdrawal charge on the full amount, which, given the bonus already added, means you recover slightly less than your original contributions.

The government’s permanent Mortgage Guarantee Scheme, launched in July 2025, supports lenders in offering 91% to 95% loan-to-value mortgages. This operates behind the scenes between the government and the lender rather than as something you apply for directly, but its effect is that more lenders offer 5% deposit mortgage products than would otherwise be available.

Shared Ownership is worth considering if your deposit is limited. You purchase a share in a property, typically between 10% and 75%, paying rent on the remainder to a housing association, and can buy further shares over time.

The First Homes scheme allows eligible first-time buyers in England to purchase new-build properties at a discount of between 30% and 50% of open-market value, subject to income limits of £80,000 per year (£90,000 in London).

The Conveyancing Process Step by Step

Once your offer is accepted, the practical legal work begins. Instructing a solicitor as early as possible, ideally before your offer is accepted, gives the process the best chance of running to time. Smalleys Solicitors’ residential conveyancing service covers the full range of purchase work for buyers in Arnold, Nottingham and across the surrounding area.

The main stages run as follows. Your solicitor opens the file and carries out anti-money laundering checks; providing identification documents and evidence of your deposit source promptly avoids early delays. The seller’s solicitor then sends the draft contract pack; your solicitor reviews title documents, raises enquiries, and orders property searches with the local authority, water authority, and environmental providers. Local authority searches alone can take three to six weeks. Once your mortgage offer is issued and all enquiries are resolved, contracts are exchanged: the transaction becomes legally binding, you pay the deposit (usually 10% of the purchase price), and a completion date is fixed. On completion day your solicitor transfers the balance of funds, you collect the keys, and the team registers the title at HM Land Registry and submits the SDLT return.

The full process typically takes 12 to 16 weeks from offer acceptance. Chain-free purchases can sometimes complete in eight weeks. Delays most often arise from slow local authority search returns or mortgage lender processing. Responding promptly to your solicitor’s requests keeps things moving.

Practical Steps Before You Make an Offer

An Agreement in Principle from a mortgage lender before you start viewing confirms how much you can borrow and shows sellers you are a credible buyer. It does not commit you or the lender to anything, but many sellers and estate agents in Nottingham will expect to see one before taking an offer seriously.

Beyond the deposit, budget for SDLT (calculated as above), solicitors’ fees and disbursements, any mortgage arrangement fee, a building survey, and removal costs. Commission an independent survey rather than relying on the lender’s mortgage valuation. The lender’s valuation confirms the property is adequate security for the loan; it does not assess condition and will not identify damp, structural movement, or other defects.

If your purchase is part of a chain, your completion date depends on other transactions completing at the same time. A single delay anywhere can postpone the whole sequence; building some flexibility into your plans is sensible.

For advice tailored to your own purchase, contact Smalleys Solicitors to speak with a member of the residential conveyancing team.

Frequently Asked Questions

Do both buyers need to be first-time buyers for SDLT relief?

Yes, where a property is purchased jointly, every buyer must be a first-time buyer for the relief to apply. If one of the purchasers has previously owned a residential property, the relief is not available and standard SDLT rates apply to the full purchase price.

Can I use a Lifetime ISA alongside a mortgage?

Yes, a Lifetime ISA can be used alongside any residential repayment mortgage to buy a first home costing £450,000 or less, provided the account has been open for at least 12 months. The government bonus is paid into the account by HM Revenue and Customs and forms part of the funds you put towards the purchase.

What property searches does my solicitor carry out?

Your solicitor will typically order a local authority search, a drainage and water search, and an environmental search as standard. Additional searches, such as a mining search in areas of the East Midlands with a coal-mining history, may be required depending on the location of the property. The results identify issues such as planning consents or restrictions, flood risk, and drainage responsibilities that could affect the value or use of the property.

When does the sale become legally binding?

The sale becomes legally binding only at exchange of contracts. Before that point, either party can withdraw without losing the property, though you will lose any costs already incurred. After exchange, you are committed to completing on the agreed date; withdrawing would result in losing your deposit and could expose you to a damages claim by the seller.

How long does a typical first-time buyer purchase take?

From offer acceptance to completion, the process generally takes 12 to 16 weeks, though chain-free purchases can complete in as little as eight weeks. The most variable factor is local authority search turnaround time, which differs considerably between councils in the East Midlands. Instructing a solicitor and submitting your mortgage application as soon as your offer is accepted gives you the best chance of reaching the shorter end of that range.

About the Author

This article was reviewed by Pritpal Chahal, (SRA number 314584) Solicitor and CEO of Smalleys Solicitors. Pritpal is one of the original founders of the Askews Group, of which Smalleys forms part, with more than 20 years’ experience in commercial and conveyancing work. He retains his practising certificate and continues to advise on complicated business transactions, with a particular focus on business fraud, trading standards, mortgage fraud and VAT fraud cases. Pritpal also leads on the firm’s SRA compliance work. Smalleys Solicitors is regulated by the Solicitors Regulation Authority under SRA number 639164.