First - time buyer - Wikipedia First - time buyer This article needs to be updated. Please update this article to reflect recent events or newly available information. ( February 2016 ) A first - time buyer ( FTB ) is a term used in the British and Irish property markets, and in other countries, for a potential house buyer who has not previously owned a property. 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 and any solicitors fees, and if they need to arrange a mortgage how much are they able to afford. In the United Kingdom and Ireland, home ownership is seen as a natural step in the life cycle and the natural form of property tenure. Ireland has one of the highest proportions of owner - occupiers 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, with FTBs being `` priced out of the market '' by ever increasing house prices. In the 2007 Scottish parliamentary election the Scottish National Party 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 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. 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 boosed by 25 % up to a maximum of £ 3000. See also First time home buyer grant Help to Buy References Jump up ^ First time buyers Jump up ^ Housing Policies for the New UK Jump up ^ Chapter on Housing Trends in Ireland Jump up ^ First Time Buyer Report 2005 Jump up ^ Decline in number of first - time buyers Jump up ^ First - time buyers ' 25 - year low ' Jump up ^ Brown in economy clash with SNP Jump up ^ Consumers Seeking Pension Advice in July 2010 Jump up ^ `` Finances - Deposit, Mortgage, Government Schemes -- FirstTimeBuyerScotland.co.uk ''. FirstTimeBuyerScotland.co.uk. Retrieved 2016 - 05 - 28. External links Channel 4 guide for First time buyers Arbor Financial Guide for first time home buyers Retrieved from `` https://en.wikipedia.org/w/index.php?title=First-time_buyer&oldid=769042280 '' Categories : Housing in the United Kingdom Housing in the Republic of Ireland Economy of the Republic of Ireland Real estate bubbles of the 2000s Hidden categories : Wikipedia articles in need of updating from February 2016 All Wikipedia articles in need of updating All articles with unsourced statements Articles with unsourced statements from March 2009 Articles with unsourced statements from April 2008 Wikipedia articles needing clarification from March 2014 Talk About Wikipedia Add links This page was last edited on 7 March 2017, at 06 : 31. Text is available under the Creative Commons Attribution - ShareAlike License ; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia ® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. About Wikipedia

Question: how does the government define first time buyer
Answer: a potential house buyer who has not previously owned a property