From tenant to homeowner: here’s how to make the transition

As the biggest purchase you’re ever likely to make, buying a property is a huge deal, and one that requires plenty of patience.

Home ownership has changed dramatically over the last 50 years, with what it takes to buy your first home now differing drastically when compared to 1974. According to this research, it takes a UK couple 11 years longer to save for the average house deposit now. The same data found the average first time buyer was 26 years old in 1974, while in 2024 they were 33 years and 8 months of age.

The high cost of rent may be to blame. Making the transition from tenant to homeowner is difficult, but it is possible, even more so if you follow our top tips below!

Figure out the basics

Determining how much you can borrow and what your home buying budget will be is a great place to begin.

By doing the maths first, you can be realistic about what you’ll need to proceed with a property purchase, including how much deposit you’ll have to save. There are a number of mortgage calculators online that will provide an initial estimate to work with.

Don’t overlook other costs

You should also budget for other home buying and house moving costs. The biggest additional cost is generally stamp duty. First time buyer stamp duty thresholds differ from the rates incurred by other house movers. Under current rules, you’ll pay no stamp duty at all on property under £425,000. Yet this generous rate won’t last forever as The Telegraph explains:

“Chancellor Rachel Reeves chose not to extend generous stamp duty relief beyond March next year in her first Budget last month. Those purchasing their first homes can currently spend £425,000 tax-free before incurring any stamp duty. But from April 2025, this allowance will fall back down to £300,000 – incurring thousands of pounds in extra costs for first-time buyers.”

When buying your first home, you’ll need to account for the cost of conveyancing (including legal fees and disbursements like local searches and Land Registry), professional surveys, mortgage arrangement and brokerage, mortgage valuation, removals, life insurance, and buildings and contents insurance.

There are hidden costs you wouldn’t have had as a tenant, which you will have as a property owner. These include the cost of furniture, white goods, redecorating and ongoing maintenance.

Start saving your deposit

Saving for a house deposit while renting is no easy feat, especially considering rental prices are so high. By embracing smarter ways to save, you’ll have that deposit in no time and be on your way to updating your status to ‘proud property owner’.

You’ll need at least 5% of the property’s value as a cash deposit to start off on the right foot, so set a budget and refine your saving habits. You could even get a flatmate to share the cost of renting and save even more. You should however seek permission from your landlord before subletting your home.

Make small changes

When saving, small changes really do make the biggest difference. Things like switching your provider for energy, internet and insurance could save you lots of cash every month. While making your lunch rather than eating out is another fantastic cash saver.

Open an ISA

Being selective about where you deposit your savings could unlock an extra cash boost too. The government’s Lifetime ISA is a great option when buying your first home. Simply, deposit up to £4,000 each year and the government will top it up with a 25% bonus up to the value of £1,000 annually.

Seek mortgage advice

You don’t have to take on the transition from tenant to homeowner alone. We’re here to help with independent mortgage advice and support every step of the way. Get in touch with our friendly team to discuss your first time buyer mortgage options today.