Buying Property

9 Steps to Buying a House in the UK: Complete First-Time Buyer Guide for 2025

15 Nov, 2025

7 min

Hauservice

Buying your first home in the UK has never been more challenging—or more rewarding. The average age of a first-time buyer in the UK is 33.8 years, and with the average house price for a first-time buyer in 2024 at £311,034, it's clear that getting onto the property ladder requires careful planning and strategic decision-making.

Yet despite these challenges, 341,068 first-time buyers successfully purchased homes in the UK in 2024, up 19% from 2023. The good news? With mortgage rates stabilising and new lending rules allowing buyers to borrow more, 2025 presents genuine opportunities for prepared buyers.

This comprehensive guide walks you through every step of the house buying journey—from that first deposit savings goal to the moment you turn the key in your new home. More importantly, we'll show you how modern tools like AI-powered property surveys can save you thousands and help you make smarter, faster decisions.

Step 1: Assess Your Financial Position and Save Your Deposit

Before browsing Rightmove becomes your evening hobby, you need to understand exactly where you stand financially. This foundational step determines everything that follows.

Understanding Deposit Requirements

Most lenders require at least a 5% deposit, though some may ask for 10%. For example, a £200,000 house would require a £10,000 deposit at 5%, or £20,000 at 10%. However, the average first-time buyer deposit was £61,090 in 2024, representing 20% of the purchase price.

Why the discrepancy? The larger the deposit you can put down, the better your mortgage rate and the lower your monthly repayments are likely to be. In today's market, that difference can save you tens of thousands over your mortgage term.

The True Cost of Buying

Your deposit is just the beginning. Extra costs of buying a property can put an additional 15% on the cost of your home—more if you want to do serious building or redecoration work when you move in. These include:

Stamp Duty: First-time buyers in England and Northern Ireland pay no Stamp Duty on homes up to £300,000. For properties between £300,001 and £500,000, you'll pay a reduced rate of 5%
Survey costs: £400-£1,500 for traditional surveys (though modern alternatives like Hausreport can provide comprehensive AI-powered property assessments for a fraction of the cost)
Conveyancing fees: £850-£1,500
Moving costs: £300-£1,000
Buildings insurance: Required from exchange

Smart Savings Strategies

If you're a first-time buyer, saving into a Lifetime ISA will entitle you to a 25% top-up from the government (up to £1,000 a year) on your savings. This means for every £4,000 you save annually, the government adds £1,000—free money towards your deposit.

Lifetime ISA entitles you to a 25% top-up from the government (up to £1,000 a year) on your savings

Step 2: Get Your Mortgage Agreement in Principle (AIP)

A mortgage agreement in principle (AIP) is a confirmation from a mortgage lender that they would, in principle, be willing to lend you a certain amount. Having an AIP can make you a more attractive buyer, as it shows the seller and their estate agent that you will be able to secure the amount of money you need to buy the property.

How Much Can You Borrow?

Lenders usually let you borrow up to between 4.5 and 5.5 times your salary. But lenders must also assess the monthly payment you can afford, after considering your outgoings as well as your income. This is called an affordability assessment.

Recent regulatory changes are working in first-time buyers' favour. First-time buyers currently enjoy increased income multiples of 6x income for higher earners with £40k plus salary, significantly boosting borrowing power.

Working with a Mortgage Broker

A mortgage broker may be particularly useful if your circumstances are less straightforward, such as if you're looking for a self-employed mortgage, a zero hours contract mortgage or mortgages for bad credit. Most brokers offer free consultations and can access exclusive deals not available directly to consumers

You can borrow up to between 4.5 and 5.5 times your salary

Step 3: Choose Your Location Strategically

Location drives everything in property—from price to quality of life. Before viewing a single property, research your target areas thoroughly.

Essential Location Research

Check crime levels using the police.uk website to understand the frequency and types of crime in your potential neighbourhood. But don't stop there. Use Hauservice to compare postcodes comprehensively—examining house price trends, school performance, demographics, crime statistics, and crucially, commute times all in one place. This data-driven approach ensures you're not just buying a house, but investing in the right area for your future.

Consider these factors:

School catchment areas (even if you don't have children, good schools boost property values)
Transport links and commute times
Local amenities and green spaces
Future development plans
Historical price growth trends

Regional Market Dynamics

The South East of England had the highest proportion of first-time buyer mortgages in the UK in 2023 at 13.8%. The three areas with the highest rates of first-time buyer mortgages were Dartford in the South East (20.2 sales per 1,000 dwellings), Harlow in the East of England (16.3 per 1,000), and Nuneaton and Bedworth in the West Midlands (15.5 per 1,000).

Step 4: Start Your Property Search

Register with local estate agents—it's free and won't create any obligation on your part. Keeping in touch with local estate agents could increase your chances of finding your ideal home, as agents sometimes contact registered buyers before listing a property online.

Viewing Properties Effectively

When viewing, look beyond the cosmetic. Structural issues, damp problems, or outdated electrics can add tens of thousands to your costs. This is where getting a Hausreport before making an offer gives you a crucial advantage—you'll spot potential issues early and can negotiate accordingly or walk away before emotional investment clouds your judgment.

Key Questions to Ask

How long has the property been on the market?
Why are the sellers moving?
Is there a chain?
What's included in the sale?
Have there been any previous offers?
What work has been done recently?

Hauservice research gives you a comprehensive overview of the area

Step 5: Make Your Offer

The asking price is just that—don't be afraid to make a lower offer. This is the start of a negotiation process. The estate agent is legally obliged to pass on all offers and the seller is not obliged to accept any offer, regardless of how much it is.

Strengthening Your Position

Mention any points that stand in your favour—for example, if you're a chain-free first-time buyer—and say that your offer is subject to a survey and the property being taken off the market. This can reduce the chances that you'll be gazumped.

In competitive markets, consider:

Offering to exchange quickly
Being flexible on completion dates
Writing a personal letter to the seller
Demonstrating you're financially prepared with your AIP

Step 6: Instruct Your Conveyancer

When buying or selling a house you need a conveyancer to complete the legal work. Choose your conveyancer as soon as your offer is accepted—delays here can kill deals.

What Conveyancers Do

Your conveyancer will:

Conduct local authority searches
Review the contract and title deeds
Handle the transfer of funds
Register you as the new owner with Land Registry
Ensure all legal requirements are met

Budget £850-£1,500 for conveyancing fees, though online conveyancers often offer competitive fixed fees.

Step 7: Arrange Your Survey and Finalise Your Mortgage

Traditionally, this is where buyers face a dilemma: pay £400-£1,500 for a comprehensive survey or risk missing costly problems. Smart buyers are using AI-powered property condition assessments that identify potential issues, estimate repair costs, and analyse price trends—all within 48 hours and at a fraction of traditional survey costs.

Survey Types Explained

Mortgage valuation: Basic check for the lender (not for you)
HomeBuyer Report: Mid-level survey (£400-£600)
Building Survey: Comprehensive but expensive (£600-£1,500)
Hausreport: AI-powered comprehensive analysis (faster, more affordable)

On average, the house buying process takes between 14 and 22 weeks after your offer is accepted. The exact timeline depends on several factors, including the mortgage approval speed, whether the property is leasehold or freehold, property chains and local authority search times.

Step 8: Exchange Contracts

When your solicitor and the seller's solicitor swap signed copies of the contract, this is known as the exchange of contracts. There is now a legally binding contract between you and the seller. Once this has happened, you can't pull out from the sale. If you do, you'll forfeit your deposit money—but, on the plus side, the seller can't back out either.

Before Exchange

Marshal your deposit money into one bank account (or two if you've more than an £85,000 deposit, so it's all protected under the UK savings safety scheme). Most banks don't usually allow you to move more than £25,000 out of an account each day, so plan ahead.

More than 4 in 10 sales collapsed April-June 2025 according to Quick Move Now's data. Reasons why your purchase could fall through include gazumping: when the seller you're buying from agrees to sell the house to someone else.

Step 9: Complete and Move In

After the final legal tasks are complete, your solicitor will arrange for your mortgage company to pay the rest of the money to the seller's solicitor. When this is done, the house belongs to you and you can move in on the agreed date. This is called 'completion'.