The Cost of Buying a House in the UK
The cost of buying a house in the UK goes far beyond the sale price. Learn about all the different fees that you may need to budget in order to buy a home. Use the filters below to narrow down the list of costs to specific situations or types of buyers.
Mortgage fees
Mortgage lenders may include additional fees as part of the total interest calculation. Most common fees include the valuation fee, arrangement fee, booking fee, and transfer fees.
Cost range: £500 to £1,000
Surveyor fee
A home surveyor creates a report that covers potential problems for buyers to know before they commit to buying a property. The cost will depend on factors such as the property's location, the property value, and the type of survey (level 1, 2, and 3).
Cost range: £400 to £1,500
Searches fees
Searches need to be completed as part of the legal work conducted by the solicitor. The most common searches include local authority, environmental, and drainage searches. Costs will increase if the solicitors need to undertake additional searches.
Cost range: £200 to £500
Home buyers protection insurance
Also known as gazumping insurance. This policy helps cover the cost of legal, survey, and mortgage lending fees in the event the house purchase falls through. This may occur for a number of reasons such as the seller changing their mind.
Cost range: £50 to £100
Damp survey fee
Home buyers may choose to have a specialist damp survey conducted to give them peace of mind that they are buying a wet and rot-free house.
Cost range: £200 to £500
Builder quotes
You may need to get some builder quotes to get an estimate of the costs involved with the issues flagged in the property survey. These days, many builders may request a fee for a pre-exchange quote. These quotes are helpful if you are looking to negotiate with the seller on any potential red flags.
Cost range: £100 to £200
Stamp duty land tax
This is the government tax that is charged when you purchase a property in the UK. Some buyers are exempt if they meet certain conditions such as purchasing a property below a certain price threshold. Your solicitor will usually collect this and file it for you on the day of completion.
Cost range: 5% to 12% of purchase price
Solicitor fees
A conveyancing solicitor is required to handle the legal work associated with buying a home.
Cost range: £800 to £2,000
Building insurance
Building insurance is recommended as soon as the buyer exchanges contracts with the seller. The buyer has a legal responsibility once the exchange is complete.
Cost range: £100 to £150
Content insurance
Contents insurance may come in handy before completion day, especially for buyers who would like to insure the fixtures and fittings in the property.
Cost range: £50 to £100
Mortgage broker fees
A mortgage broker might be able to get buyers access to exclusive products that are not available to buyers directly. They may also be of value for buyers with complex financing situations (e.g. buyers with visas or buyers earning income through multiple sources). Buyers with a simple financing situation could consider free mortgage brokers like Habito, London & Country, and Better.co.uk.
Cost range: £0 to £500
Title indemnity insurance
Buyers may want to take out an indemnity insurance to protect themselves from the costs that may arise from potential issues. This may happen if, for example, the seller is unable to provide any planning permission documentations for structures like extensions. Indemnity insurance are different to other policies because they require one-off payments
Cost range: £200 to £400
House removal & moving fee
House removals cost will depend on factors such as the size of your home and distance of the move.
Cost range: £500 to £1,500
Lock-changing fee
It is strongly recommended for buyers to change the door locks on the day of completion. You cannot guarantee that you have received the full set of keys from the seller.
Cost range: £100 to £150
Boiler servicing
The seller has no legal obligation to have a boiler serviced before the sale of a property. A check-up is crucial, especially if the seller does not provide any record of it getting serviced.
Cost range: £100 to £200
Mail redirection
Mail redirection may come in handy if you need to update the residential address for a lot of providers. You may forget to update the address for some of the less-obvious ones!
Cost range: £30 to £100
Party wall agreement
Planning to do some renovation work? A party wall agreement would need to be established with your new neighbours if you intend to carry out any building work near or on a party wall.
Cost range: £1,000 to £2,000
Planning application
A planning application needs to be submitted and approved by the local council if you intend to make major changes to your new home (e.g. building a new extension).
Cost range: £300 to £500
Emergency fund
You may want to save up for a small emergency fund in the event something goes wrong during completion day. Some buyers, for example, have had to pay for overnight accommodation with completion being delayed by money transfer issues. There could also be some issues in the new home that require immediate fixing, such as a broken-down boiler in the middle of winter.
Cost range: £1,000 to £2,000
Utility cancellation fee
You may need to pay a penalty if you do not have the option to transfer your existing broadband or phone provider.
Cost range: Outstanding months of contract
Cleaning fee
Unfortunately, sellers are not legally obligated to leave the property in a pristine clean state after they move out. There have been horror stories of sellers leaving the properties in filth. As part of the emergency fund, you may want to account for professional cleaner fees if there ends up being an overwhelming amount of things to clean in your new home. Buyers moving from a rental property may also want to consider using an end of tenancy cleaning service.
Cost range: £100 to £200
Furniture & home goods
Budget the necessary amount to spend on furniture and other home goods.
Cost range: £1,000 to £2,000