UK Property Buying Costs

Overview of Buying Costs

Before we go into detail on each item, here is a summary of the typical costs you should budget for when buying a property in England or Wales. Costs in Scotland and Northern Ireland differ in some areas (notably stamp duty), which we will cover.

For a £300,000 property, a first-time buyer might expect total additional costs of roughly £5,000 to £8,000. A next-time buyer at the same price would pay more because of stamp duty.

Stamp Duty Land Tax

Stamp Duty Land Tax (SDLT) is the biggest single cost on top of the purchase price for most buyers. It is a tax paid to HMRC on property purchases in England and Northern Ireland. Scotland has Land and Buildings Transaction Tax (LBTT), and Wales has Land Transaction Tax (LTT), both with different rates and bands.

SDLT Rates from April 2025

The temporary higher thresholds introduced during the pandemic have ended. From 1 April 2025, the standard SDLT rates are:

SDLT works like income tax bands — you only pay the higher rate on the portion of the price within that band, not on the whole amount.

First-Time Buyer Relief

First-time buyers benefit from a higher nil-rate threshold. From April 2025, the first-time buyer relief works as follows:

• No SDLT on properties up to £300,000
• 5% on the portion between £300,001 and £500,000
• Properties over £500,000 do not qualify — standard rates apply to the full price

For a £400,000 property, a first-time buyer would pay £5,000 in SDLT (5% of £100,000). A next-time buyer would pay £10,000 (0% on the first £125,000, 2% on the next £125,000, and 5% on the remaining £150,000).

Additional Property Surcharge

If you are buying an additional property (a buy-to-let or second home), you pay a 5% surcharge on top of the standard rates from October 2024. This applies to properties over £40,000.

Calculate your exact stamp duty using our stamp duty calculator.

Solicitor and Conveyancer Fees

You need a solicitor or licensed conveyancer to handle the legal side of buying a property. Their job includes conducting searches, reviewing the contract, handling the exchange of contracts, transferring funds, and registering the property in your name at the Land Registry.

Fees typically range from £1,000 to £2,500 including VAT, depending on the complexity and location. This usually breaks down as:

• Legal fees: £800 – £1,800 — the solicitor’s charges for their work
• Disbursements: £200 – £500 — costs the solicitor pays on your behalf, such as search fees, Land Registry fees, and bank transfer charges

Some solicitors charge a fixed fee for a standard purchase, while others charge by the hour. Get quotes from several firms and check what is included. Beware of very low headline fees that exclude disbursements or charge extra for common items.

If you are buying with a mortgage, your solicitor also acts for the lender (in most cases), which adds a small additional fee.

If your purchase falls through after the solicitor has started work, you may still owe their fees. Some solicitors offer “no completion, no fee” arrangements, but these typically exclude disbursements already incurred.

Property Survey

A survey is an inspection of the property’s condition carried out by a qualified surveyor. It is different from the mortgage valuation (which is done for the lender, not for you). A survey helps you identify defects, plan for future maintenance, and potentially negotiate a lower price.

There are three main types of survey:

RICS Level 1 — Condition Report

Cost: £200 – £350. A basic traffic-light assessment of the property’s condition. Suitable for newer or straightforward properties. Does not include a valuation or detailed advice.

RICS Level 2 — HomeBuyer Report

Cost: £350 – £600. The most popular choice. It covers the condition of visible elements (roof, walls, windows, plumbing, electrics), flags significant issues, and includes a market valuation. It does not look under floorboards or behind walls.

RICS Level 3 — Building Survey

Cost: £500 – £700+. The most comprehensive option. It provides a detailed analysis of the property’s structure and condition, including potential hidden defects. This is recommended for older properties, unusual constructions, or if you plan major renovations.

Skipping the survey to save a few hundred pounds is a false economy. A survey that reveals a £10,000 roofing problem gives you the evidence to renegotiate the price or walk away before completion.

Mortgage Fees

If you are buying with a mortgage (as most people do), there are several fees associated with setting it up.

Arrangement Fee

Many mortgage products charge an arrangement fee (sometimes called a product fee) of £500 to £2,000. This is the fee for securing a particular interest rate. Products with lower interest rates often have higher arrangement fees, so you need to compare the total cost over the initial fixed period, not just the rate.

You can usually choose to pay the fee upfront or add it to the mortgage. Adding it to the mortgage means you pay interest on the fee for the full term — on a £2,000 fee over 25 years at 5%, that is about £1,500 in extra interest.

Valuation Fee

The lender needs to value the property to confirm it is adequate security for the loan. Some lenders include this for free, others charge £200 to £500 depending on the property value. This is not a survey — it is a basic check that the property exists and is roughly worth what you are paying.

Mortgage Broker Fee

If you use a mortgage broker, they may charge a fee of £300 to £500, or they may take commission from the lender (in which case their service is free to you). Some charge both. Ask upfront how your broker is paid and whether they cover the whole market or are tied to certain lenders.

To estimate your monthly repayments, use our mortgage calculator.

Searches and Disbursements

Your solicitor will carry out several searches on the property before you exchange contracts. These are paid for by you as disbursements.

Local Authority Search

Cost: £100 – £250. This checks for planning applications, building control records, road schemes, and tree preservation orders that could affect the property. Processing times vary by council — some take a few days, others several weeks.

Environmental Search

Cost: £30 – £60. Checks for flood risk, contaminated land, subsidence, and proximity to landfill sites. This is required by most mortgage lenders.

Water and Drainage Search

Cost: £30 – £60. Confirms that the property is connected to the mains water and sewer systems and identifies the location of public drains near or under the property.

Land Registry Fee

Cost: £100 – £500. This is the fee for registering your ownership with the Land Registry. The amount depends on the property price and whether you register online or by post.

Bankruptcy Search and Transfer Fee

These are small charges (£2 to £30 each) that your solicitor carries out as part of the conveyancing process. They confirm you are not bankrupt and handle the electronic transfer of funds.

In total, searches and disbursements typically add £250 to £450 to your solicitor’s bill.

Moving Costs

The cost of physically moving your belongings is often underestimated. It depends on the distance, the volume of your possessions, and whether you hire professionals or do it yourself.

• Professional removal company: £500 – £1,500 for a local move, £1,500 – £3,000+ for a long-distance move. Packing services cost extra.
• Van hire (DIY): £50 – £200 per day, plus fuel. Cheaper but physically demanding and time-consuming.
• Storage: £50 – £200 per month if you need temporary storage between homes.

Other costs that often catch people out include mail redirection (£35 to £70 through Royal Mail), new furniture or appliances for the new property, and any immediate repairs or decorating you want to do before moving in.

First-Time Buyer vs Next-Time Buyer

The total cost of buying varies significantly depending on whether you are a first-time buyer or already own a property. Here is a comparison for a £350,000 purchase:

The £5,000 stamp duty difference is the biggest gap. First-time buyers also benefit from other schemes and initiatives that can reduce costs further, such as the Lifetime ISA bonus (25% on savings up to £4,000 per year, for properties up to £450,000).

Costs If the Purchase Falls Through

In England and Wales, either party can pull out of a property transaction at any time before exchange of contracts without legal penalty. This means you could spend money on solicitor fees, searches, and a survey and then lose the property.

If a purchase falls through, you may lose:

• Solicitor fees: some or all of their charges, depending on whether you have a “no completion, no fee” agreement
• Survey fee: non-refundable (£300 – £700)
• Mortgage valuation fee: non-refundable if you paid one
• Search fees already incurred: typically £200 – £400

In total, a failed purchase could cost you £500 to £2,000. Home buyer protection insurance is available for around £50 to £100 and covers some of these costs if the transaction falls through for reasons outside your control.

Leasehold vs Freehold — Extra Costs

If you are buying a leasehold property (most flats are leasehold), there are additional costs and considerations:

• Ground rent: An annual charge paid to the freeholder. Some modern leases have peppercorn (effectively zero) ground rent, while older leases may have escalating ground rent that can become significant.
• Service charge: Covers the maintenance of communal areas, buildings insurance, and management fees. Can range from £1,000 to £5,000+ per year depending on the development.
• Lease length: If the lease has fewer than 80 years remaining, it becomes increasingly difficult and expensive to extend. Mortgage lenders typically require at least 70 to 80 years remaining. A lease extension can cost thousands to tens of thousands of pounds.
• Leasehold information pack: The freeholder or managing agent charges £200 to £500 for providing the information your solicitor needs.

These ongoing costs should be factored into your affordability calculations alongside the mortgage repayments.

How to Budget for Buying

A practical approach to budgeting for a property purchase:

• Start with your deposit target (5 to 20% of the property price).
• Add £5,000 to £15,000 for buying costs (depending on property price and first-time buyer status).
• Keep an emergency fund of at least £3,000 to £5,000 for unexpected costs after moving in.
• Budget for any immediate work the property needs (new boiler, decorating, appliances).

For a £300,000 property with a 10% deposit, you would need approximately £30,000 deposit plus £5,000 to £8,000 for buying costs, plus your emergency fund. That is £38,000 to £43,000 in total savings before you can realistically proceed.

Use our stamp duty calculator and mortgage calculator to model the numbers for your situation.

Key Points to Remember

• Budget £5,000 to £15,000 for buying costs on top of the deposit and purchase price.
• Stamp duty is the largest additional cost for most buyers. First-time buyers pay nothing on properties up to £300,000.
• Solicitor fees typically run £1,000 to £2,500 including disbursements.
• Always get a survey — a Level 2 HomeBuyer Report is the most common choice at £350 to £600.
• Compare mortgage products on total cost (rate plus fees), not just the headline interest rate.
• Keep a reserve fund after buying — unexpected repairs are common in the first year.
• If buying leasehold, check the service charge, ground rent, and lease length carefully.
• Purchases can fall through before exchange — budget for that possibility.