First-time buyer in London: stamp duty, deposit and what to check

First-time buyers in England pay no stamp duty on the first £300,000 of a home's price and 5% on the part from £300,001 to £500,000. If the price is above £500,000 the relief cannot be claimed at all, and the standard rates apply to the whole price. Those are the rates shown on GOV.UK's residential rates page when we checked it in October 2026.

The rates in one table

From GOV.UK's stamp duty land tax residential rates page:

• First-time buyer relief: 0% up to £300,000, then 5% from £300,001 to £500,000. Not available above £500,000.
• Standard rates: 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million, 12% above £1.5 million.

Rates change, so check the GOV.UK page and the HMRC calculator before you exchange.

Worked examples

A £450,000 flat

With first-time buyer relief: 0% on £300,000, plus 5% on £150,000 = £7,500.

A £520,000 flat

The price is above £500,000, so relief does not apply. Standard rates: 0% on £125,000, plus 2% on £125,000 (£2,500), plus 5% on £270,000 (£13,500) = £16,000.

That £70,000 difference in price adds £8,500 in tax. In London, where many flats sit near £500,000, it is worth knowing which side of the line a listing falls before you view it.

Who counts as a first-time buyer

You must never have owned a home, in the UK or abroad, and you must intend to live in the property as your main home. If you buy jointly, every buyer must qualify. Check the full conditions on GOV.UK.

Thinking about the deposit

The deposit is usually expressed as a percentage of the price, and a larger deposit generally gives access to lower mortgage rates. Speak to a mortgage adviser early, because the deposit you have decides the price band you can search, and in London a few percentage points move you between very different areas.

Remember the other costs: stamp duty if it applies, solicitor's fees, a survey, mortgage fees and moving costs.

Searching in London as a first-time buyer

• Set a search ceiling just under £500,000 if relief matters to you, then watch for price cuts on homes listed just above it.
• Watch several portals, because agents choose where they list. Our Rightmove vs Zoopla vs OnTheMarket guide explains why.
• Use a checklist on every viewing; ours is here.

Housieve reads four London portals each night and scores every listing, so a home that drops from £520,000 to £495,000 reaches you the next morning.

If you are buying to let instead

An extra 5% applies if you already own another residential property, so investors pay more than first-time buyers. If the plan is a short let, our guide to holiday let marketing covers how bookings arrive. Landlords running the books themselves may also want a daily view of their own marketing numbers; see a daily marketing brief for small businesses.

Frequently asked questions

Do first-time buyers pay stamp duty in London?

Not on the first £300,000. They pay 5% on the part up to £500,000, and lose the relief above that price.

Is the London threshold different from the rest of England?

No. Stamp duty land tax rates are the same across England. Scotland and Wales have their own taxes.

What if one joint buyer has owned a home before?

Then the purchase does not qualify for first-time buyer relief.

Next step

Set a watch profile around your price band at housieve.braivex.com. The trial is 14 days and needs no card.