Many first-time buyers are caught off-guard by the costs of buying a home beyond the deposit. Between stamp duty, solicitor fees, surveys, mortgage arrangement fees, and moving costs, you could easily need an extra £5,000–£15,000 on top of your deposit. Budget for all of it before you start viewing.
Stamp Duty Land Tax (SDLT)
Stamp Duty is the biggest additional cost for many buyers. In England and Northern Ireland, the first-time buyer nil-rate threshold has been £300,000 since 1 April 2025 (it was temporarily £425,000 before that). On a £350,000 home: first-time buyers pay 5% on £50,000 = £2,500. Non-first-time buyers pay: 0% on first £125,000, 2% on next £125,000, 5% on remaining £100,000 = £7,500 total. Scotland (LBTT) and Wales (LTT) have their own rates. Use HMRC's SDLT calculator or our stamp duty calculator for your exact figure before making offers.
- First-time buyers: 0% up to £300,000, 5% on £300,001–£500,000
- Standard rates: 0% to £125k, 2% to £250k, 5% to £925k, 10% to £1.5m, 12% above
- Second home/buy-to-let: additional 5% surcharge on the full purchase price (since 31 October 2024)
- Must be paid within 14 days of completion
Legal and Conveyancing Fees
A solicitor or licensed conveyancer handles the legal transfer of ownership. Fees typically range from £800–£2,000 depending on property price and complexity. This usually includes: legal fee, disbursements (land registry fee, local authority searches, drainage search, bankruptcy search). Get three quotes: fees vary significantly. Online conveyancers are cheaper but less personal; local solicitors often better for complex situations.
What's included in conveyancing disbursements?
Disbursements are third-party costs your solicitor pays on your behalf: Land Registry registration (from £20 to several hundred pounds, depending on the price), local authority searches (£100–£300), drainage and water search (£30–£80), environmental search (£30–£50), and electronic transfer fee (£30–£50).
Do I need a survey?
Technically no, but strongly recommended. A mortgage lender's valuation only confirms the property is worth lending against: it doesn't check the property's condition. An independent survey is a separate cost worth having.
Survey Costs
Three types of survey: (1) RICS Condition Report: basic, £300–£500, flags major defects only; (2) RICS HomeBuyer Report: more detailed, £400–£700, highlights material defects, damp, subsidence; (3) Building Survey (Full Structural Survey): comprehensive, £600–£1,500, recommended for older or unusual properties. For new builds: snagging survey (£300–£600) checks for defects before you move in. Don't skip the survey: a £500 survey finding a £10,000 structural issue pays for itself many times over.
Mortgage and Moving Costs
Mortgage arrangement fees (0–£2,000 depending on the deal; you can add it to mortgage or pay upfront), mortgage valuation fee (£0–£500, some lenders include free), broker fee if using a broker (£0–£500: many are fee-free paid by lender commission). Moving costs: removal company (£400–£1,500 for local move, £1,000–£3,000 for long distance), or van hire (£100–£300 DIY). Storage if there's a gap between selling and completing. Estate agent fee if selling (1–3% of sale price + VAT). Budget a contingency of 1–2% of the purchase price for unexpected costs post-move (repairs, new carpets, paint).
- home buying costs UK
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- stamp duty
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- first time buyer