Over 390,000 first-time buyers completed a purchase in 2025, an 18% jump from the year before, and first-time buyers now account for 54% of all mortgage-backed property purchases. That means more people than ever are navigating this process for the first time, and I’ve seen the same questions come up again and again: how much do I actually need saved, what costs catch people out, and how do I avoid a costly mistake on my first apartment. After covering the UK property market for years and watching friends and readers go through this, I can tell you the difference between a smooth first purchase and a stressful one usually comes down to what you know before you start.
The numbers are daunting, but they also tell a clear story. The average first-time buyer deposit nationally sits between £60,000 and £64,000, and in London that figure exceeds £120,000. Yet housing affordability improved in 70% of UK local authority areas over the past year, and the national house price-to-earnings ratio for FTBs has dropped to 4.7x — below the 20-year average for the first time since 2020. That’s real progress, but it only helps if you know exactly where your money needs to go. Here’s what you actually need to know.
If you’re just starting to think about this, I’d recommend reading our guide on making the leap from renter to owner first — it covers the mindset shift and the early financial groundwork. And if you’re already thinking about how to protect your new home, a carbon monoxide alarm is one of those small purchases that makes a big difference from day one.
What a Lifetime ISA actually does for you
The single most powerful tool most first-time buyers overlook is the Lifetime ISA. You can save up to £4,000 per year and the government adds a 25% bonus — that’s up to £1,000 free money annually. Both partners in a couple can open one, meaning a combined bonus potential of £2,000 per year. Over five years, a couple maxing their LISAs would save £40,000 and receive £10,000 in government bonuses. That’s not a small perk; it’s the difference between buying in two years versus five.
There’s a catch you need to know about. The property price cap is £450,000, which is fine for most of the country but tight in London and the South East where average FTB prices hit £472,000 and £299,000 respectively. If you’re buying in those areas, check whether the cap applies before you commit your savings. Over 400,000 first-time buyers used the LISA bonus in the last year according to HMRC data, so it’s well-established — but it only works if your target property fits the rules. My advice: open a LISA as soon as you can, even if you’re years away from buying. The bonus compounds, and you can’t go back and claim the years you missed.
For a deeper look at how mortgage terms interact with your savings strategy, our article on understanding mortgage term length is worth reading alongside this.
Why the hidden costs matter more than the deposit
Most first-time buyers fixate on the deposit and forget that buying an apartment comes with a stack of additional costs that can easily hit £5,000 to £10,000. I’ve seen people scrape together a 10% deposit only to realise they need another few thousand for solicitors, surveys, and moving vans. That’s not a minor inconvenience — it can delay your purchase or force you to borrow at worse rates.
Here’s what the numbers look like for a typical purchase. Solicitor or conveyancing fees run £1,500 to £3,000. A homebuyer survey costs £400 to £1,000, and if you’re buying an older apartment (pre-1980), a full building survey at £600 to £1,500 is strongly recommended. Mortgage valuation fees range from £150 to £1,500, though some lenders offer free valuations. Removal costs add £300 to £2,000, and initial furnishing can be anywhere from £2,000 to £10,000. Buildings and contents insurance — required before exchange — runs £200 to £500 per year. Add it up and you’re looking at £5,000 to £10,000 beyond your deposit for a standard purchase.
There’s also a regional dimension. In the South East, the average first-time buyer home requires 7.8 times the average local salary, while in the North East that figure drops to 4.1 times. That means the same £5,000 in fees represents a much larger proportion of your total costs in cheaper regions. If you’re buying in London’s commuter belt, properties within a 10-minute walk of a Zone 3 station command an 18% premium compared to those further out — so location choice directly affects how much you’ll need beyond the deposit.
What I’d do: before you even start viewing properties, open a separate savings pot specifically for these costs. Aim for £7,000 as a buffer. That way, when the survey comes back with a few issues or the solicitor quotes higher than expected, you’re not scrambling.
If you’re unsure about any legal aspects of the purchase, speaking with a property lawyer early on can save you from expensive surprises later.
Where first-time apartment buyers go wrong
I’ve watched enough purchases fall through to spot the patterns. These are the mistakes that cost people time, money, or both — and they’re almost always avoidable.
Ignoring the leasehold fine print
Apartments in the UK are almost always leasehold, not freehold. That means you own the property but not the land it sits on, and you pay ground rent and service charges to the freeholder. The mistake buyers make is not reviewing the last three years of service charge history. Spikes in charges can indicate impending major works — things like roof repairs or lift replacements — that you’ll be billed for as a leaseholder. A sudden £3,000 charge six months after moving in is not uncommon if you haven’t checked. Always ask your solicitor to review the service charge accounts for the past three years before you exchange contracts.
Underestimating the true cost of a low deposit
A 5% deposit sounds achievable, and the Mortgage Guarantee Scheme supports 95% loan-to-value mortgages on homes up to £600,000. But a low deposit locks you into higher interest rates. Brokers report that buyers with a 15% deposit are significantly better positioned than those starting with only 5%. The difference in monthly payments between a 5% and 15% deposit on a £226,000 apartment could be hundreds of pounds per year. Over a five-year fixed term, that adds up to thousands. If you can wait an extra year to save that extra 10%, you’ll almost certainly come out ahead.
Forgetting about energy efficiency
Homes rated EPC D or below are projected to require significant investment to meet anticipated 2030 efficiency standards. If you buy an apartment with a low EPC rating now, you could face mandatory upgrades costing £5,000 to £15,000 for insulation or boiler work within a few years. Prioritise properties with an EPC rating of B or C to avoid this future cost. It’s not just about environmental concern — it’s about protecting your resale value and avoiding a large, unexpected bill.
For more on what to look for in an apartment’s management structure, our guide on condo board responsibilities explains what questions to ask before you commit.
→ Scroll right to see all columns
| Cost | Typical Range | When It’s Paid |
|---|---|---|
| Solicitor/conveyancing | £1,500–£3,000 | Before exchange |
| Homebuyer survey | £400–£1,000 | After offer accepted |
| Mortgage valuation | £150–£1,500 | During mortgage application |
| Removal costs | £300–£2,000 | On completion day |
| Initial furnishing | £2,000–£10,000 | After moving in |
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How to buy your first apartment without the stress
This section walks through the practical steps in order. Follow them and you’ll avoid the most common pitfalls.
Get your finances in order before you view a single property
Start with a Lifetime ISA if you haven’t already. Open it before you turn 40, and aim to max out the £4,000 annual contribution. Then get an Agreement in Principle from a lender. This is a conditional offer that tells you how much they’d lend, involves a soft credit check, and lasts 60 to 90 days. Estate agents won’t take you seriously without one, and it stops you from falling in love with a property you can’t afford. Aim for a deposit of at least 15% to access better mortgage rates — currently sitting around 4.5% to 5.5% for five-year fixed products. A low credit score can inflate those rates by 0.5% or more, so check your credit report and fix any errors before you apply.
Factor in every cost — not just the deposit
Use the table above as your checklist. Add up solicitor fees, survey costs, mortgage valuation, removal costs, and initial furnishing. Then add a 10% buffer. If you’re buying an older apartment, budget for a full building survey at £600 to £1,500 — it’s worth it to uncover structural issues before you commit. Remember that buildings and contents insurance is required before exchange, so arrange that early. A Wi-Fi water leak detector is a small investment that can save you thousands if a pipe bursts in your new apartment — insurers notice these things.
Scrutinise the leasehold and service charges
For apartments, leasehold is the norm. Ask your solicitor to review the last three years of service charge accounts. Look for year-on-year increases above inflation, and ask whether any major works are planned. Ground rent should be clearly stated and ideally fixed or capped. If the service charge has doubled in two years, that’s a red flag. Also check the length of the lease — anything under 80 years can make it difficult to get a mortgage and will cost thousands to extend. If you’re unsure about any of this, a real estate lawyer can review the lease terms before you commit.
Understand the regional market you’re buying into
Where you buy dramatically changes what you can afford. In the North East, the average FTB property costs £139,000. In London, it’s £472,000 — 3.4 times higher. The South East sits at £299,000, the East of England at £277,000, and the South West at £249,000. If you’re flexible on location, you can buy a much better property for the same money. But if you’re tied to a specific area, adjust your expectations accordingly. Over 50% of FTB households now rely on dual incomes to qualify for a mortgage, so be realistic about what you and a partner can afford together. For more on how location affects your purchase, our piece on how much location really matters breaks down the trade-offs.
Plan for the future — energy efficiency and resale value
Properties with an EPC rating of B or C are the sweet spot. They’re efficient enough to avoid future upgrade costs and attractive to future buyers. If you’re looking at an older apartment with an EPC of D or below, factor in £5,000 to £15,000 for potential upgrades to meet 2030 standards. Also think about resale value from day one. Apartments with good natural light, a balcony, or proximity to transport tend to hold their value better. Our guide on enhancing apartment resale value has practical tips for making smart choices now that pay off later.
Can I use a Lifetime ISA if I’m buying in London? ▾
What happens if I’m gazumped after my offer is accepted? ▾
Do I need a full building survey or just a homebuyer report? ▾
How long does the whole process take from offer to completion? ▾
Can I buy an apartment with a 5% deposit in 2026? ▾
The key takeaway is simple: the more you know before you start, the smoother the process will be. Open a Lifetime ISA, get your Agreement in Principle, and budget at least £5,000 beyond your deposit for fees and moving costs. Scrutinise the leasehold terms and service charge history before you commit, and prioritise energy-efficient properties to avoid future upgrade bills. If you do those things, you’ll be in a stronger position than most first-time buyers.
If this was useful, you might also want to read smart tips for buying an apartment and tax benefits.
Sources and Further Reading
Green apartments and sustainable living in the UK — A practical look at eco-friendly buying options and how energy efficiency affects your purchase decision.
First-time buyer complete guide. Pocketwise, 2026.
First-time buyer guide. British Property, 2026.
First-time buyer statistics UK 2026. Shaded Canvas, 2026.
