Buying your first home? Property expert reveals five top tips for first time buyers
Property expert reveals top tips for first-time buyers
With spring approaching, the most popular time of year to buy a house, many prospective first-time buyers will be preparing for the coming weeks and months.
Buying your first home is an exciting milestone, but it can often be overwhelming and it can be hard to know where to start with preparations. Luckily, house buying experts at housebuyers4u have revealed their top tips for making the process smoother.
1 – Take advantage of the Stamp Duty exemption
A perk for first-time buyers in the UK is the exemption from Stamp Duty Land Tax. This is a tax on homes ranging from 2 to 12% of the purchase price, depending on the value of the property.
Currently, Stamp Duty is zero for first-time buyers of homes under £425,000. Unfortunately, this threshold will decrease to £300,000 from April 2025. However, as long as the value of the house you want to buy is lower than this new threshold, you won’t pay Stamp Duty.
In December last year, the average price of a house in the UK was £297,166, just below the new Stamp Duty exemption threshold for first-time buyers. Buying a home is an expensive venture, and staying below this threshold can help save you extra money.
2 – Open a LISA
Saving for a house deposit is often one of the biggest hurdles for first-time buyers. Most people aim to save a deposit equal to ten percent of the property’s value. This may be higher or lower depending on personal circumstances and the use of government schemes.
One of the best ways to save effectively for a house deposit is by using a Lifetime ISA (LISA). This is a tax-free savings account which you can use for your house deposit, as long as you follow certain rules, for example, it must be your first home. You can open one with as little as £1 and save up to £4,000 each year. Any money saved will receive a 25% bonus from the government, a maximum of £1,000 per year.
If you are saving for a house deposit, this is a great way of speeding up the process.
3 – Understand your budget
Determining your budget means you can avoid disappointment or unexpected costs. A good starting point is calculating how much you can afford in mortgage payments by determining your disposable income and factoring in additional costs that come with buying a home, such as insurance, maintenance and utilities.
It is also important to consider additional costs on top of the price of the property such as conveyancing fees (usually between £400 and £1,500, plus disbursements), surveys (usually between £300 and £900) and other expenses, such as a removals van when the time comes to move in. This way, you can prevent overstretching financially.
4 – Choose the right area to buy
The location of your home is just as important as the property itself; it is important to balance price with area. It goes without saying that houses in places like London are much more expensive than those in other areas, but it is also important to love the area where you live.
By looking at things like transport links, crime rates, schools, and local amenities, you can balance affordability with lifestyle.
5 – Research government schemes
The UK government offers several schemes that help first-time buyers, and it is important to have a good understanding of these before buying your first home to ensure you benefit as much as possible.
An example is the First Homes Scheme, which offers local first-time buyers a 30-50% discount on new build homes. This scheme is great for those wanting to buy their first house near where they work or live. The government’s goal is to add 10,000 new homes to the scheme each year, so the number is expected to grow over time.
There are multiple schemes to choose from, and it is recommended to research each of them to find out which one, if any, is the best fit for you.
Paul Gibbens, property expert at housebuyers4u has commented,
“As we know, spring is the most popular time of year to buy a house. It means you can settle in by summer and relax in your new garden with your feet up. However, the process leading up to this can be complicated, especially for first-time buyers.
“A key point to remember is that preparation is key, and buying your first home doesn’t happen overnight. Whether it’s saving for your deposit or researching which area you want to live in, the process should start months or even years before making the purchase.
“Buying a house is a big step for anybody, and it is important to stay informed and seek professional advice where it is needed, whether from mortgage advisers or solicitors. Hopefully, these tips can provide a helpful starting point for those who may feel confused.”
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