Buying your first place is a big deal. It’s exciting, stressful, and probably a bit confusing too. One thing that trips people up early on is the whole “first-time buyer” label. You’d think it’s pretty straightforward. Never bought a home? You’re a first-time buyer. Simple, right? Well… not quite.
There’s a bit more to it, especially in the UK, where being classed as a first-time buyer can give you access to things like stamp duty relief or certain mortgage offers. But what actually counts? Can you inherit a property and still qualify? What if you owned a place abroad?
The Basic Definition
In the UK, a first-time buyer is someone who’s never owned a residential property before. This includes properties in the UK and overseas. If you’ve bought a house in Spain, even if it was years ago and you never lived there, that still counts as owning. So, you wouldn’t be seen as a first-time buyer here anymore.
This also covers shared ownership, buy-to-let properties, and even if you only had a small share in a property. Ownership is ownership, even if it was only partial or temporary.
What If You’re Buying With Someone Else?
This is where things can get a bit tricky. If you’re buying a home with someone and they have owned property before, you won’t be treated as a first-time buyer even if you’ve never bought anything yourself.
To qualify as first-time buyers, every person involved in the purchase must meet the criteria. So, if it’s a joint mortgage or joint purchase, and one of you previously owned property, neither of you will qualify.
This can be frustrating. Say your partner bought a flat years ago, sold it, and now you’re buying together. You’d think you could still get the benefits, right? Unfortunately, no. It’s an all-or-nothing rule.
What Counts as “Owning” a Property?
It’s not just buying a house outright. If your name was on a title deed or land registry, even temporarily, that counts. Inheriting a property counts too. If you inherited a flat from a family member even if you never lived in it, or sold it right away you’re no longer a first-time buyer.
And here’s something people often miss: if you’ve ever been listed as a co-owner or even held property through a trust or other legal structure, it still counts against you. The government looks at any previous ownership, no matter how it came about.
What Benefits Do First-Time Buyers Actually Get?
This is the real reason the label matters. Being classed as a first-time buyer opens the door to a few things:
1. Stamp Duty Relief
In England and Northern Ireland, if you’re a first-time buyer and the home you’re buying costs £425,000 or less, you don’t pay any stamp duty on the first £425,000. If it’s between £425,001 and £625,000, you’ll pay 5% on the part above £425,000. Over £625,000? You don’t get the relief at all.
In Scotland and Wales, the rules are different, but there are similar schemes. For instance, in Scotland, you get an extra £175,000 allowance before Land and Buildings Transaction Tax kicks in.
2. Access to First-Time Buyer Mortgages
Some lenders offer special mortgage deals aimed specifically at first-time buyers. These might include lower deposits, cashback offers, or better interest rates. Sometimes they come with conditions like using a certain solicitor or having a minimum income but they’re worth looking into.
3. Government Schemes
Help to Buy is no longer running in England, but there are still other schemes like Shared Ownership or First Homes. These are designed to help people get on the ladder for the first time, usually by reducing the deposit needed or offering a discount on the market price.
Again, you’ve got to be a genuine first-time buyer to qualify.
What If You’ve Owned Commercial Property?
Now here’s an exception that might work in your favour. If you’ve owned a commercial property (like an office or shop) but never owned a residential property, you can still be a first-time buyer.
Even if you’ve run a business from a building you owned, as long as you haven’t had a place to live in your name, you should still qualify.
That said, if the commercial property included a flat upstairs that you also owned—even if you never lived in it—then you’re out.
