Buying a home is one of the most significant investments you will ever make. However, while the excitement of owning your own place is thrilling, it’s important to remember that the cost of purchasing a home goes far beyond the price tag you see on the listing. In fact, many first-time buyers are shocked by the sheer number of additional expenses involved in the process.
Whether you are purchasing a flat or a house, the costs you need to account for can add up quickly. Let’s break down what to expect when it comes to the financial side of buying a home.
The Deposit
While not an additional cost per se, the deposit is a significant upfront expense when purchasing a home. Typically, you’ll need at least a 5% deposit. For instance, on a £300,000 property, this equates to £15,000. However, the larger your deposit, the more mortgage options you’ll have access to, often at more favourable rates. This can result in lower monthly repayments and potentially reduce the overall cost of your mortgage over time.
It’s essential to consider not just the deposit but also the long-term affordability of your mortgage. Lenders typically assess how much you can borrow based on your income and outgoings. Using a mortgage calculator can provide an estimate of what you might afford.
Remember, while a larger deposit can open doors to better mortgage deals, it’s crucial to ensure that you can comfortably manage the monthly repayments. It’s advisable to speak with a mortgage broker to explore your options and find the best deal tailored to your circumstances.
If you’re buying and selling a house at the same time you won’t usually need to save a deposit because you can use the equity from the house you’re selling in order to get a mortgage on the house you’re buying.
Stamp Duty
Stamp Duty Land Tax (SDLT) is a tax you pay when purchasing a property or land in England and Northern Ireland. The amount you owe depends on the property’s price and whether you’re a first-time buyer, moving home, or purchasing an additional property, and often the largest additional cost of buying a home.
Standard Rates (Effective from 1st April 2025)
For most buyers, the SDLT rates are as follows:
- Up to £125,000: 0%
- £125,001 to £250,000: 2%
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Over £1.5 million: 12%
For example, if you purchase a property for £295,000, your Stamp Duty Land Tax (SDLT) would be calculated as follows: 0% on the first £125,000, which equals £0; 2% on the next £125,000, amounting to £2,500; and 5% on the remaining £45,000, which totals £2,250. This brings the total SDLT to £4,750.
First-Time Buyers Relief
First-time buyers can take advantage of Stamp Duty Land Tax (SDLT) relief when purchasing a property. If the property is priced up to £300,000, no SDLT is due. For properties between £300,001 and £500,000, you’ll pay 5% on the portion above £300,000. However, if the property is priced over £500,000, no relief applies, and the standard rates will be charged. This relief is available only if both you and anyone else you’re buying with are first-time buyers, and the property price is £500,000 or less.
Additional Property Surcharge
If you’re buying an additional property (e.g., a second home or buy-to-let), you’ll pay an extra 5% SDLT on top of the standard rates.
Scotland has a land and buildings transaction tax rather than SDLT and the rules are slightly different.
In Wales, SDLT has been replaced by Land Transaction Tax. It’s payable on property that costs more than £225,000.
Legal and Conveyancing Fees
When buying a home, legal and conveyancing fees are among the most significant additional costs you will incur. These fees cover the legal work required to transfer ownership of the property from the seller to you.
Key Components:
Conveyancing: Drawing up contracts, transferring funds, and managing the legal aspects.
Searches: Local authority searches for issues like flooding, contamination, or planned developments.
Land Registry: Registering the property in your name and confirming boundaries.
Stamp Duty: Calculating and arranging payment of stamp duty.
Completion: Transferring remaining funds and making the property officially yours.
Conveyancing fees typically range from £400 to £1,500 (excluding Stamp Duty) according to Reallymoving, with additional disbursements like local searches (£250-£450) and Land Registry registration (£200-£300) adding up to £700 or more.
It’s advisable to get a detailed quote upfront, including all potential costs, to avoid surprises later.
Property Survey
While surveys are not a legal requirement, it is always worth getting a property survey done to ensure the property is in good condition. A house survey is basically a health check on a property.
The cost of a survey depends on the type you choose, the location, property size and its value.
Here’s an overview:
Survey Shack (£29.99)
Guided property inspection helping you to uncover valuable, surveyor-inspired insights about the property’s condition and the local market. The app guides you through your free guided property inspection with easy-to-follow instructions, teaching you along the way. It helps you to assess visible property risks early in the process before you get emotionally or financially committed.
It’s only £29.99 and you will gain actionable knowledge from the start, without committing to a full survey cost up front.
It’s not a replacement for a full RICS building survey, but it arms you with the awareness and confidence to ask better questions, flag concerns early, and avoid being caught off guard.
From a roof nearing the end of its life to potential damp, it’s a great first step to get an early read on the property’s condition so you know exactly where to focus your time, energy, and budget.
In short, it helps you turn a gut feeling into an informed decision. And when it comes to buying a home, one of the biggest investments you will ever make, that’s exactly what you need.
Level 1 Survey: A Condition Report (approx £300 – £700)
A Condition Report is a basic survey that gives an overview of the property’s overall condition. It reports on any big visual defects, but doesn’t go into detail and gives no advice on how to carry out repairs.
Frankly? Survey Shack’s guided inspection gives you more insights for less money.
Level 2 Survey: A HomeBuyer Report (£400 – £1,000)
The Level 2 survey, also known as the home buyers report, is the most common choice for conventional homes in reasonable condition. This type includes a more thorough visual inspection of all reasonably accessible areas and highlights any serious or urgent issues that could affect the property’s value.The homebuyers report survey follows a standard template and identifies visible defects that may require attention, though it does not offer detailed advice on repairs or costs.
Level 3 survey: A Building Survey (£600 – £1,500 plus)
Often considered the most detailed analysis a general surveyor can provide. Necessary repairs and future maintenance will be discussed along with the issues found. A Level 3 Building Survey is typically recommended for older properties, listed buildings, homes in visibly poor condition, or those that have undergone significant alterations or extensions.
Specialist Surveys
In addition to general surveys, you may need a Specialist Survey for specific concerns. These focus on particular issues and provide in-depth assessments. Examples of specialist surveys include asbestos surveys, CCTV drainage surveys, damp surveys, and structural surveys, to name a few. The cost for these surveys varies depending on the type and size of the property.
Note: If a general building survey report highlights issues such as concerns with the roof, structure, damp, drainage, services, or hazardous materials like asbestos, it will often recommend further evaluations by specialists or third parties, further adding to the mounting costs of your home purchase.
So why not start with Survey Shack? It will help you identify early red flags and decide what level and type of survey, if any, the property actually needs.
For more detailed information, you can read our Buyer and Seller’s Guide on which survey is right for you.
Mortgage fees
When buying a house, you’ll also face mortgage arrangement fees, which typically range from £500 to £1,500. You can usually pay this fee upfront or add it to your mortgage balance. If you pay upfront, check whether you can get the fee refunded if you don’t go ahead with the mortgage. Sometimes, a higher arrangement fee could get you a lower interest rate, but this isn’t always the case. Speaking with a fee-free mortgage broker can help you find the best deal.
If you’re porting a mortgage (transferring your existing mortgage to a new property), you may avoid paying arrangement fees and early repayment charges. However, switching to a new deal with a better rate could save you more in the long run. A mortgage broker can help explain all your options.
Your mortgage lender will require a mortgage valuation survey, which is for their benefit to ensure the property is worth at least the amount they are lending you. This is an additional cost to consider when buying a home. While some lenders may waive the valuation fee, others will charge based on the property’s value, with typical fees around £300.
It’s important to understand that a valuation survey is different from a condition survey, which assesses the property’s overall state. For more details, read our guide on ‘Why Your Mortgage Survey Isn’t the Safety Net You Think It Is; The Homebuyers Guide’.
Aside from the major costs, there are other factors to consider when buying a home. Removal costs for your move, as well as home insurance, should be factored in to ensure your property and belongings are covered. If you live in a leasehold property, you’ll also need to budget for annual ground rent and service charges paid to the freeholder. These costs can add up, so it’s important to consider them as part of your overall homeownership budget.
Spend a little, save a lot
It is clear as day – buying a house is an expensive endeavour. According to the latest figures from the Countrywide Surveying Services (CSS) Home Survey Trends Index for Q1 2025, only 15% of homebuyers instructed a home condition survey as part of their purchase. At Survey Shack, we understand why many buyers skip the survey. As it’s not a legal requirement, many buyers choose to skip this step in an effort to save money. After all, when you’re already juggling the other costs of buying a home, a survey can seem like an added expense you don’t want to bear. But skipping this step can cost you more in the long run.
At Survey Shack, we get how important every penny is. If your bank balance is feeling the strain and you’re hesitant about committing to a full professional survey, we’ve got your back. Before you dive into buying a property with no insight into its condition, download Survey Shack and try our Guided Property Inspection. It’s a cost-effective way to uncover potential issues and decide whether a more detailed survey is needed.
Don’t risk buying blind. Get started today.
