Costs of Buying a Home in the UK Explained

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Key takeaways

The deposit is only part of the cost of buying a home
Stamp duty and equivalents depend on where you buy, the price and your circumstances
Get written quotes for legal fees, surveys and mortgage fees
Budget for moving costs, insurance and ongoing running costs
Keep an emergency fund and a contingency

The price of a home is just the start. Most buyers face a list of other costs, some of them due long before completion, and many people underestimate them. This guide sets out the main costs of buying a home in the UK, so you can budget with fewer surprises. Figures change, so check the current rates and thresholds before you commit.

A checklist of costs

Cost	When it is due
Deposit	Paid on exchange of contracts
Stamp duty or equivalent	Within a set number of days after completion
Legal or conveyancing fees	Throughout the process
Searches	Early in the process
Survey or valuation	Before you commit
Mortgage fees	On application or completion
Mortgage broker fee	If applicable
Removals	On moving day
Buildings insurance	From exchange of contracts
Ongoing costs	After you move in

Deposit

Most lenders require at least 5%. See how much deposit you need.

Stamp duty and its equivalents

Property purchase tax depends on where in the UK you are buying:

England and Northern Ireland: Stamp Duty Land Tax (SDLT)
Scotland: Land and Buildings Transaction Tax (LBTT)
Wales: Land Transaction Tax (LTT)

Each has bands and thresholds that depend on the price, and different rates for first-time buyers, additional properties and non-UK residents. These rates and reliefs change, so use the official calculators on GOV.UK, Revenue Scotland and the Welsh Revenue Authority. Your solicitor will normally pay the tax for you on completion, so you need to have the money ready.

Legal costs

You will need a solicitor or licensed conveyancer to handle the legal work: checking the title, dealing with the seller's solicitor, the contract, the mortgage paperwork and the transfer of funds. Fees depend on the price and complexity. Get written quotes that show the legal fee, VAT and disbursements, which are costs passed on, such as search fees, Land Registry fees and bank transfer fees. Be aware that some quotes are "no sale, no fee", but may charge more elsewhere.

Searches

Searches check local authority records, drainage and water, environmental risks such as flooding and contamination, and more. They typically cost a few hundred pounds in total and are arranged by your conveyancer. Some are required by your lender.

Survey and valuation

Lender's valuation: required by the lender to confirm the property is worth the loan. It is for their benefit, not yours, and does not tell you about defects. Some lenders do it free, others charge.
Condition report: a basic overview of the property's condition.
Homebuyer report: a more detailed survey suited to standard properties in reasonable condition.
Building survey: the most thorough option, best for older, unusual or altered properties.

A survey can reveal problems that help you renegotiate or walk away. It is worth the money, and the price depends on the size and value of the property.

Mortgage costs

Arrangement or product fee: a charge for setting up the deal, ranging from nothing to a couple of thousand pounds. You may be able to add it to the loan, but this means paying interest on it over the term.
Booking fee: paid on application.
Valuation fee: as above.
Broker fee: if you use a broker who charges one.
Telegraphic transfer fee: for sending funds on completion.
Early repayment charge: if you repay or switch during the deal period.

Compare mortgages on the overall cost, including fees, not just the rate. Our mortgage calculator helps you see how the loan affects your payments.

Moving costs

Removals or van hire
Cleaning
Redirecting post
Disconnecting and connecting utilities
Storage if there is a gap between sale and purchase

Insurance

Buildings insurance is usually required by the lender from the date contracts are exchanged. Contents insurance protects your belongings. You might also consider life insurance or other cover, though these are optional. See our guides on home insurance and life insurance.

Ongoing costs of owning

Mortgage payments
Council tax
Energy and water bills
Maintenance and repairs. Many people suggest setting aside a percentage of the property's value each year, but the right amount depends on the age and condition of the home.
Service charges and ground rent on leasehold properties
Broadband, TV licence and other household bills

Be sure to check lease length, ground rent and service charges if you are buying a leasehold flat. Short leases can be expensive to extend and can make mortgages difficult to get.

Costs if you are also selling

Estate agent fees
Legal fees for the sale
Energy Performance Certificate (EPC)
Early repayment charges on your current mortgage
Removal costs

Costs when things do not go smoothly

Sales can fall through, and in England and Wales you are not legally bound until contracts are exchanged. If you pull out you may lose money already spent on surveys and legal fees. Budget for that risk and keep some reserves. Never exchange contracts until you have your finances in place.

How to budget

Add up each category in the table, using quotes where possible.
Add a contingency of around 10% for the unexpected.
Make sure your savings cover the deposit and costs, leaving an emergency fund as well.
Check what help is available, such as first-time buyer schemes.

Buying with someone else

If you buy with a partner, friend or family member, agree in writing how the costs and the deposit are shared and how ownership is split. In England and Wales you can own as joint tenants or tenants in common, which affects what happens if one of you dies or wants to sell. Your solicitor can explain the difference. Each buyer's credit history can affect the mortgage, and you are usually each responsible for the whole debt, not just your share.

Ways to reduce the costs

Ask your lender and broker about deals that include free valuation and legal work, but compare the rate and fees overall
Get several conveyancing quotes and check what is included
Check whether you qualify for any stamp duty relief
Negotiate on price after a survey that reveals defects
Time your move to avoid paying for overlapping rent and mortgage

Frequently asked questions

Do I pay stamp duty on every purchase?

Not necessarily. There are thresholds below which no tax is due, and reliefs for some buyers. Use the official calculator for your situation.

Do I need a survey?

It is not compulsory, but strongly recommended. The lender's valuation does not tell you about the condition.

Can I add the fees to my mortgage?

Some lenders allow it, but you pay interest on the fees for the length of the loan.

What happens to my costs if a sale falls through?

You may lose what you have paid for searches, surveys and legal work. This is another reason to keep savings in reserve.

Sources and further reading

Stamp Duty Land Tax — GOV.UK
Land and Buildings Transaction Tax — Revenue Scotland
Land Transaction Tax — Welsh Government
Buying a home — MoneyHelper

This page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.

Written by

MoneyBrink Editorial Team — Editorial team

The MoneyBrink Editorial Team researches, writes and reviews every guide on this site. We work from official UK sources such as GOV.UK, the Financial Conduct Authority, MoneyHelper and the Money and Pensions Service, explain things in plain English, and update articles when the rules change. We do not sell financial products and we do not give personal advice.

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The Costs of Buying a Home in the UK