Buying Your First Home
How property tax relief works for first-time buyers in England, Northern Ireland and Scotland, and the Lifetime ISA rules for buying a first home.
First-Time Buyer Nil-Rate Threshold
£300,000
First-time buyers in England and Northern Ireland pay no Stamp Duty up to this price, as long as the home costs no more than the relief cap.
GOV.UK — HMRC · checked 10 Nov 2026
First-Time Buyer Relief Price Cap
£500,000
The most a first home can cost and still qualify for first-time buyer relief in England and Northern Ireland.
GOV.UK — HMRC · checked 10 Nov 2026
First-time buyer nil-rate threshold Scotland
£175,000
First-time buyers in Scotland pay no Land and Buildings Transaction Tax up to this price.
Scottish Government · checked 10 Nov 2026
Government bonus
25%
The government adds this to what you pay into a Lifetime ISA, up to the yearly limit, if you use it towards a first home or keep it until later in life.
GOV.UK — HMRC · checked 10 Nov 2026
First-home price limit
£450,000
The most a first home can cost if you use a Lifetime ISA to buy it.
GOV.UK — HMRC · checked 10 Nov 2026
Average 2-year fixed rate, 95% loan-to-value
5.88%
The average rate lenders advertise for borrowers with a 5% deposit.
Bank of England · checked 10 Nov 2026
Average 2-year fixed rate, 90% loan-to-value
5.6%
The average rate lenders advertise for borrowers with a 10% deposit. A bigger deposit usually means a lower rate.
Bank of England · checked 10 Nov 2026
Over the price cap, first-time buyer relief is lost entirely
In England and Northern Ireland, first-time buyers can claim a relief on Stamp Duty Land Tax (SDLT) when the property is their first home. Everyone you are buying with must also be a first-time buyer.
The relief does not simply shrink above the cap. Once the price passes £500,000, no relief is available and the purchase is taxed under the rules for buyers who have owned a home before. Within the cap, the part of the price above £300,000 is taxed at a reduced first-time buyer rate.
If you are not a UK resident for SDLT purposes, a surcharge applies on top of any first-time buyer rates.
Scotland and Wales charge different taxes
Scotland does not use SDLT. Buyers there pay Land and Buildings Transaction Tax (LBTT), and first-time buyers get a higher nil-rate band than other buyers, up to £175,000. The Additional Dwelling Supplement may apply to certain transactions on top of LBTT.
Wales also does not use SDLT. It has its own Land Transaction Tax, and first-time buyers there get no equivalent relief.
A Lifetime ISA can fund a first home if the conditions are met
A Lifetime ISA (Individual Savings Account) can be used towards a first home without a withdrawal charge only if the price is no more than £450,000 and the other conditions are met. These include buying with a mortgage, having a conveyancer or solicitor act for you, and waiting at least a year after your first payment into the account. Withdrawals for other reasons carry a charge. Lifetime ISA Rules and Limits sets out the full conditions and how the charge works.
What's changed
- 7 November 2026 Average 2-year fixed rate, 95% loan-to-value rose from 5.7% to 5.88%.
- 7 November 2026 Average 2-year fixed rate, 90% loan-to-value rose from 5.37% to 5.6%.
- 12 October 2026 Average 2-year fixed rate, 95% loan-to-value rose from 5.52% to 5.7%.
- 12 October 2026 Average 2-year fixed rate, 90% loan-to-value rose from 5.16% to 5.37%.