Homebuyer FAQs: Who counts as a first-time buyer?

In the UK, to be considered a first-time buyer, you must meet several criteria.

Put simply, a first-time buyer is a person who is purchasing their first property and has never owned a residential property before, either in the UK or abroad. 

This means that you must not have previously owned any residential property, including properties that were inherited or gifted. If you have ever owned a property, even if you did not purchase it, you cannot be considered a first-time buyer.

It is also important to note that if you are buying a property with someone else, both of you must be first-time buyers to qualify for first-time buyer benefits, such as the higher Stamp Duty threshold. If one person has owned a property before, either in the UK or elsewhere, and the other has not, you will not qualify for this.

First-time buyers can benefit from various government schemes such as the Help to Buy scheme and shared ownership programs. In England and Northern Ireland, first-time buyers purchasing a property worth up to £425,000 do not have to pay Stamp Duty on the first £425,000. Additionally, the property you are buying must be a residential property intended for you to live in. Commercial properties or buy-to-let investments do not qualify.

Being classified as a first-time buyer can offer significant financial benefits, such as reduced or exempt Stamp Duty and access to government assistance schemes, making it easier to get onto the property ladder. 

It’s important to confirm your status with a solicitor or financial advisor when planning your property purchase to ensure you receive all eligible benefits.

Disclaimer: The information provided in this blog post is for informational purposes only and does not constitute financial advice. While we strive to provide accurate and up-to-date information, individual circumstances may vary, and readers are encouraged to seek personalised advice from qualified financial advisors or mortgage brokers before making any financial decisions. We do not accept any liability for the consequences of actions taken based on the information provided herein.