A first-time buyer (FTB) is a term used in the British, Irish, Canada property markets, and in other countries, for a potential house buyer who has not previously owned a

property Property is a system of rights that gives people legal control of valuable things, and also refers to the valuable things themselves. Depending on the nature of the property, an owner of property may have the right to consume, alter, share, r ...

. A first-time buyer is usually desirable to a seller as they do not have to sell a property, and as such will not involve a housing chain. There are many factors a first-time buyer may need to consider before purchasing their first property; how much initial cash they will need for

stamp duty Stamp duty is a tax that is levied on single property purchases or documents (including, historically, the majority of legal documents such as cheques, receipts, military commissions, marriage licences and land transactions). A physical rev ...

and any solicitors fees, and if they need to arrange a

mortgage A mortgage loan or simply mortgage (), in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any pu ...

how much are they able to afford. In many countries such as

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tota ...

and Australia home ownership is seen as a natural step in the life cycle and the natural form of property tenure. Canada and Australia have some of the most ownership rate in word (all above 65%)

home ownership Owner-occupancy or home-ownership is a form of housing tenure in which a person, called the owner-occupier, owner-occupant, or home owner, owns the home in which they live. The home can be a house, such as a single-family house, an apartment, ...

. Ireland has one of the highest proportions of

owner-occupier Owner-occupancy or home-ownership is a form of housing tenure in which a person, called the owner-occupier, owner-occupant, or home owner, owns the home in which they live. The home can be a house, such as a single-family house, an apartment, ...

s in the EU at around 80%. In the UK in the 1980s almost half of all mortgages were taken out by first-time buyers, but this has now declined to only about 15%.. In Ireland, FTB's represent 34% of the market. In recent years the number of new buyers purchasing property has declined. In the 2007 Scottish parliamentary election the

Scottish National Party The Scottish National Party (SNP; sco, Scots National Pairty, gd, Pàrtaidh Nàiseanta na h-Alba ) is a Scottish nationalist and social democratic political party in Scotland. The SNP supports and campaigns for Scottish independence from ...

proposed a £2,000 grant for first-time buyers to help them get onto the property ladder. Grants have not been forthcoming in the rest of the UK, but in July 2007 Housing Minister

Yvette Cooper Yvette Cooper (born 20 March 1969) is a British politician serving as Shadow Home Secretary since 2021, and previously from 2011 to 2015. She served in Gordon Brown's Cabinet as Chief Secretary to the Treasury from 2008 to 2009 and Work and Pens ...

announced it would be broadening the government's Homebuy Shared Equity scheme to help buyers. "Unless we act now by 2026 first-time buyers will find average house prices are ten times their salary. That could lead to real social inequality and injustice," Cooper told

Parliament In modern politics, and history, a parliament is a legislative body of government. Generally, a modern parliament has three functions: representing the electorate, making laws, and overseeing the government via hearings and inquiries. ...

. Since then, first time buyers have regained momentum in the market, with reports in 2010 citing first-time buying as the most popular of consumer enquiries for a local, whole of market mortgage adviser - accounting for 37% of total enquiries. In 2016 the UK Government launched the Help to Buy ISA for first time buyers through incentivising them to use savings to fund a deposit on a property. The money saved is then boosted by 25% up to a maximum of £3000. In April 2017, the Lifetime ISA was launched. It was launched to replace the Help to Buy ISA (which was closed in Nov 2017). The Lifetime ISA gives a similar 25% top-up from the government towards a First Time Buyer's home purchase, but also gives the flexibility to save the money and the top-up for retirement.

References

{{reflist Housing in the United Kingdom Housing in the Republic of Ireland Economy of the Republic of Ireland Real estate bubbles of the 2000s

See also

References