First-Time Buyer Stamp Duty Savings Calculator
Work out exactly how long it takes to save for your stamp duty bill — and whether you even need to. First-time buyers under £300,000 pay zero.
Key Takeaways
- •First-time buyers pay zero SDLT on properties up to £300,000 (from 1 April 2025)
- •Above £300,000: 5% on the portion between £300,001 and £500,000 only
- •Maximum FTB saving versus standard rates: £2,500 on a £300,000–£500,000 purchase
- •Keep your SDLT savings in a separate account from your deposit ISA
- •Your SDLT bill is due on completion day — plan the timing carefully
In this article
Savings Timeline Calculator
Enter your target property price, any existing SDLT savings, and your monthly savings rate to see your personalised savings timeline. The calculator applies first-time buyer rates automatically.
Stamp Duty Savings Timeline
SDLT due as FTB
£2,500
Still to save
£2,500
Time to save
5 months
(0.4 years)
Calculator applies FTB relief: 0% up to £300,000, 5% on £300,001–£500,000. No FTB relief above £500,000 — standard rates apply.
FTB Stamp Duty Rules from 1 April 2025
From 1 April 2025, the government reduced the first-time buyer stamp duty nil-rate threshold from £425,000 back to £300,000. The property price cap for FTB relief also fell from £625,000 to £500,000. These are the permanent rates, not a temporary relief.
| Property Price | FTB Rate (from Apr 2025) | FTB SDLT | Standard SDLT |
|---|---|---|---|
| £250,000 | 0% | £0 | £2,500 |
| £300,000 | 0% | £0 | £2,500 |
| £350,000 | 5% on £50k excess | £2,500 | £5,000 |
| £400,000 | 5% on £100k excess | £5,000 | £7,500 |
| £450,000 | 5% on £150k excess | £7,500 | £10,000 |
| £500,000 | 5% on £200k excess | £10,000 | £12,500 |
| £500,001+ | No FTB relief | Standard rates | Standard rates |
Cliff edge at £500,000: A property at £499,000 costs a first-time buyer £9,950 in SDLT. The same property at £501,000 costs £15,550 at standard rates — a £5,600 jump for just £2,000 more in price. Negotiate hard near this threshold.
Savings Timeline at Common Property Prices
The table below shows how long it takes to save the required SDLT at different monthly savings rates for the most common first-time buyer price points.
| Property | FTB SDLT | £250/mo | £500/mo | £750/mo | £1,000/mo |
|---|---|---|---|---|---|
| £250,000 | £0 | — | — | — | — |
| £300,000 | £0 | — | — | — | — |
| £325,000 | £1,250 | 5 months | 3 months | 2 months | 2 months |
| £350,000 | £2,500 | 10 months | 5 months | 4 months | 3 months |
| £400,000 | £5,000 | 20 months | 10 months | 7 months | 5 months |
| £450,000 | £7,500 | 30 months | 15 months | 10 months | 8 months |
| £500,000 | £10,000 | 40 months | 20 months | 14 months | 10 months |
Green rows = zero SDLT. FTB relief applies on all rows up to £500,000. Assumes savings start from zero.
Regional Context: London vs North vs Midlands
The FTB savings calculator tells a very different story depending on where you buy. Average first-time buyer prices vary enormously across the UK, which means the stamp duty challenge is far greater in London and the South East.
London
Avg FTB price: ~£450,000
SDLT: £7,500
~15 months at £500/mo
Midlands
Avg FTB price: ~£220,000
SDLT: £0
No saving needed
North England
Avg FTB price: ~£165,000
SDLT: £0
No saving needed
First-time buyers in the North of England, the Midlands, Wales, and Scotland buying at typical local prices often face no SDLT at all. The challenge is almost entirely a London and South East problem, where average FTB prices regularly exceed the £300,000 nil-rate threshold by £100,000 or more. If you are buying in an area where average prices sit below £300,000, you can redirect your entire savings effort toward the deposit.
How to Save Faster: ISAs and Other Strategies
Once you know your SDLT target, these strategies can help you reach it faster:
High-interest easy-access savings account
Keep SDLT savings in a separate high-interest account (currently 4–5% AER from leading banks). This keeps it liquid for completion day while earning meaningful interest. Do not lock it in a fixed-term bond — you need access when your purchase completes.
Lifetime ISA (LISA) — indirect benefit only
LISA funds cannot pay stamp duty directly (they can only go toward the purchase price), but the 25% government bonus frees up other savings for SDLT. See our LISA strategy guide for the full explanation.
Cash ISA for deposit, savings account for SDLT
Max out your Cash ISA allowance (£20,000/year) for your deposit savings — tax-free interest adds up. Hold your SDLT fund in a standard savings account where you might earn slightly less but can access it freely without ISA rules complicating things.
Help to Save (if eligible)
If you are on Universal Credit or Working Tax Credit, the government's Help to Save scheme gives a 50% bonus on savings up to £50 per month (£1,200 bonus over 4 years). While modest, it is a guaranteed return available to lower-income first-time buyers.
Keep SDLT Savings Separate from Your Deposit
One of the most common financial mistakes first-time buyers make is pooling their deposit savings with their SDLT fund. The problem: as your property search progresses and you find a property you love, the temptation to use "all available savings" for the deposit can leave you scrambling to find stamp duty funds on completion day.
Worked Example: Completion Day Surprise
Emma has £55,000 saved. She buys a £400,000 property with a 10% deposit (£40,000). She expects her stamp duty to be £5,000 as a first-time buyer. Her solicitor confirms she needs £40,000 deposit + £5,000 SDLT + £2,500 legal fees = £47,500 total on completion day.
Because she had labelled her savings "deposit fund," she nearly committed £40,000 to the deposit without ring-fencing the £7,500 needed for SDLT and fees. She narrowly avoided needing an emergency personal loan by catching this with her mortgage broker three weeks before completion.
Open a dedicated savings account for your SDLT and legal fees. Label it clearly. Do not touch it for the deposit. When you exchange contracts (typically 4–8 weeks before completion), your solicitor will give you the exact completion statement — this is when you confirm the final SDLT amount.
Employer Schemes and Family Help
Beyond personal savings, first-time buyers have two additional funding sources worth exploring: employer schemes and family gifts.
Employer Home Buying Schemes
Some employers (especially in financial services, tech, and public sector) offer home-buying assistance as a benefit. These can include interest-free loans, salary advances, or matching schemes specifically for deposit or home-buying costs. Check your employee benefits portal or speak to HR — this is an underutilised benefit. Any employer loan is usually structured as a salary deduction arrangement, with HMRC implications if the interest rate is below the official rate.
Family Gifts for Stamp Duty
Parents and family members can gift money specifically for stamp duty. Unlike a gifted deposit (which lenders scrutinise closely and require a declaration for), a gift toward stamp duty is not subject to lender oversight — SDLT is paid directly from your own funds after completion, not through the conveyancer. See our full guide to parents paying stamp duty for the IHT implications and structuring options.
Quick Summary: Stamp Duty Timeline
- Exchange of contracts: Solicitor confirms exact SDLT amount
- Completion day: SDLT funds transfer with balance of purchase price
- 14 days after completion: Solicitor files SDLT return and pays HMRC
- Penalty for late payment: Interest charged from day 15 at HMRC rate
Ready to see your numbers?
Use our free calculator to see exactly how much stamp duty you need to budget for.
Check your first-time buyer savings
Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.