The True Cost of Buying a House

The cost of buying a house in the UK is much more than the price and your deposit. On top, you’ll usually pay legal fees, searches, a survey, mortgage fees, removals and, depending on the price and where you buy, Stamp Duty or its equivalent. Together, these can add a few thousand pounds to what you need to have ready.

This guide walks through the 10 main house buying costs, when each one is usually paid, a worked example on a £250,000 home, the hidden costs of buying that people often miss, and the ongoing costs of owning a home.

What does it really cost to buy a house in the UK?

When people think about the cost of buying a house, they usually think of two numbers: the price and the deposit. The deposit is your share of the price, and the mortgage covers the rest. But the purchase itself comes with a list of fees and taxes that the mortgage doesn’t usually cover.

Some of these are fixed, such as Land Registry fees. Others depend on the price of the home, where it is, the mortgage deal you choose and how you move. That’s why it can help to work out your own list early, rather than relying on a single “average” figure.

The figures in this guide come from MoneyHelper, GOV.UK and the other official sources listed at the end. They’re typical ranges, so your own costs could be higher or lower.

The 10 main costs of buying a house

1. Your deposit

Most residential mortgages need a deposit of at least 5% of the price. On a £250,000 home, that’s £12,500. A bigger deposit lowers your loan-to-value (LTV), which can open up more deals. Our guide to how much deposit you need to buy a home explains this in more detail.

In England and Wales, your deposit is usually paid to your solicitor or conveyancer at exchange of contracts. From that point, you’re legally committed to the purchase.

%Loan-to-value calculatorSee what different deposits mean for your loan-to-valueTry it →

2. Stamp Duty (or its equivalent)

In England and Northern Ireland, you pay Stamp Duty Land Tax (SDLT) on the portion of the price within each band. The standard rates are:

First-time buyers pay no Stamp Duty on homes up to £300,000, then 5% on the portion from £300,001 to £500,000. If the price is over £500,000, first-time buyer relief can’t be claimed. If you’ll own more than one home after buying, you’ll usually pay 5% more on each band.

GOV.UK gives the example of a £295,000 home at standard rates: £0 on the first £125,000, £2,500 on the next £125,000 and £2,250 on the last £45,000, a total of £4,750. A first-time buyer would pay nothing on the same home.

Stamp Duty must be paid within 14 days of completion. Your solicitor or conveyancer usually sends the return and pays it for you on completion day, and adds it to their bill, so the money needs to be ready alongside your deposit.

£Stamp Duty calculatorWork out the Stamp Duty on your purchase, band by bandTry it →

3. Legal fees (conveyancing)

Conveyancing is the legal work of transferring the home into your name. MoneyHelper says legal fees are typically £850 to £1,500 including VAT at 20%. GOV.UK’s home buying guide says to expect to be told the full price up front, so it’s worth asking each firm exactly what’s included and checking for extras.

4. Searches and Land Registry fees

Your solicitor carries out searches to check for issues such as planning, roads and local authority matters. MoneyHelper puts local searches at around £250 to £300, and these are typically paid up front.

In England and Wales, HM Land Registry charges a fee to register you as the new owner. It’s set by the price. For example, it’s £150 for a home costing £200,001 to £500,000 when your solicitor applies online (£330 by post). Your solicitor will usually collect this from you as part of their bill.

5. A survey

A survey checks the condition of the home before you commit. It’s separate from the lender’s valuation, which is for the lender’s benefit. MoneyHelper lists these typical starting costs, which rise with the value of the home:

6. The mortgage valuation

Your lender values the home to check it’s worth enough to lend against. MoneyHelper says a valuation fee can range from £150 to £1,500, depending on the value of the property, and that some lenders may not charge one. It’s worth checking who pays before you apply.

7. Mortgage fees

Many mortgage deals come with fees. MoneyHelper lists these typical examples:

• Booking fee: £99 to £250, sometimes paid when you apply.
• Arrangement or product fee: up to £2,000.
• Electronic transfer fee: £40 to £50, for sending the mortgage money to your solicitor.

A deal with a lower rate sometimes has a higher fee, so it can help to compare the total cost over the deal period, not just the rate. Our guide to fixed, variable and tracker mortgages explains the main types of deal.

If you use a mortgage broker, you may also have to pay them a fee, so it’s worth asking about this at the start.

8. Buildings insurance

If you have a mortgage, your lender will usually require buildings insurance. In England and Wales, you become legally responsible for the home once contracts are exchanged, so cover usually needs to start from your exchange date, not the day you move in. Premiums vary a lot between insurers, so getting several quotes can help.

9. Removals and moving costs

MoneyHelper says removals range from around £150 to £2,000 or more, depending on how much you’re moving and how far. Hiring a van and doing it yourself can cost less. Smaller moving costs add up too, such as storage, cleaning and redirecting your post.

10. Setting up your new home

This is one of the hidden costs of buying that’s easy to forget. You may need furniture, white goods, curtains or blinds, or some decorating before you move in. There’s no typical figure because it depends so much on the home and what you already own, but it can help to set a budget for it early.

Worked example: the cost of buying a £250,000 house

Here’s an illustrative example for a first-time buyer in England buying a £250,000 home with a 10% deposit. It uses the lower and higher ends of the typical ranges above.

The example is illustrative only. It doesn’t include buildings insurance, broker fees, furniture or any extra costs for a leasehold home, and your own costs could be higher. It does show how much the mortgage deal and the way you move can change the total.

When do you pay each cost?

Not everything is paid on the same day, which can help with planning. In England, Wales and Northern Ireland, the usual order is:

1. When you apply for a mortgage Any booking fee, and sometimes the valuation fee.
2. Before exchange Your survey, and searches, which are typically paid up front through your solicitor.
3. At exchange of contracts Your deposit, paid to your solicitor. Buildings insurance usually needs to start from this date.
4. On completion day The rest of the money is sent to the seller’s solicitor. Your solicitor’s bill, Stamp Duty and Land Registry fee are usually settled around this time.
5. Moving day and after Removals, then the ongoing costs of owning a home.

MoneyHelper says it’s a good idea to make sure you’ve saved enough to cover all the upfront costs before you start. Our guide to how much deposit you need includes a simple way to work out your full savings target.

Can you add fees to your mortgage?

Some lenders let you add certain fees, such as the arrangement fee, to the mortgage instead of paying them up front. This can help if your savings are stretched, but there’s a trade-off.

MoneyHelper says it’s usually best to pay mortgage fees up front if you can, because of the extra interest.

Extra costs for leasehold homes

Many flats, and some houses, are leasehold. With leasehold, you own the home for a set number of years, but not the land it stands on. Leasehold homes can come with extra costs, including:

• Service charges, which usually pay for things such as communal areas, gardens, communal lighting and repairs to the outside of the building.
• Ground rent, paid to the freeholder, if the lease includes it.
• A sinking fund, which some leases use to save for future major repairs.
• Admin charges and buildings insurance arranged by the landlord.

MoneyHelper suggests always checking the service charges before you make an offer, because they’re different for each property and can change over time.

The ongoing costs of owning a home

Once you’ve moved in, there are regular costs on top of your mortgage payment. These are worth building into your budget before you decide how much to borrow:

• Council Tax, which depends on your local council and the home’s valuation band.
• Buildings and contents insurance, with buildings cover usually a condition of your mortgage.
• Running costs such as energy, water, phone, TV and broadband.
• Maintenance and repairs. MoneyHelper says the average repair bill for new homeowners is £5,750.
• Leasehold charges, if they apply.

Your mortgage payment is likely to be your biggest monthly cost. Our mortgage repayment calculator can show what different loan sizes, rates and terms could mean for your payment.

£Mortgage repayment calculatorSee your monthly payment and the total cost over the termTry it →

Buying in Scotland or Wales

Our Stamp Duty calculator covers England and Northern Ireland only. For Scotland and Wales, Revenue Scotland and the Welsh Revenue Authority have their own guidance and calculators.

Summary

The true cost of buying a house includes your deposit plus a range of fees and taxes, which in our £250,000 example came to between about £1,900 and £7,000 for a first-time buyer. Knowing each cost, and when it’s paid, can help you set a realistic savings target and avoid surprises close to moving day.

Sources

• MoneyHelper – Mortgage fees and costs when buying or selling a home
• MoneyHelper – Homebuyer surveys and costs
• MoneyHelper – Leasehold vs freehold: what’s the difference?
• MoneyHelper – Buying property in Scotland – a money timeline
• GOV.UK – Stamp Duty Land Tax: Residential property rates
• GOV.UK – Stamp Duty Land Tax
• GOV.UK – HM Land Registry: Registration Services fees
• GOV.UK – How to buy a home
• Revenue Scotland – LBTT: Residential property
• Welsh Government – Land Transaction Tax rates and bands

Last updated: 29 October 2026. This guide is general educational information only and is not regulated financial advice.