You’ve found the property, agreed a price, and sorted your mortgage in principle. It feels like the hard part is done. But the full cost of buying a house is almost always more than the price on the listing.
This guide covers everything you’re likely to spend beyond the purchase price, so you can plan properly and avoid any unwelcome surprises along the way.
Related: The process of buying a house explained
Upfront government charges
Stamp Duty Land Tax (SDLT)
Stamp Duty is typically the largest additional cost in a purchase. It’s a tax on properties above a certain value, calculated in bands on the purchase price. The rate you pay depends on whether you’re a first-time buyer, a home mover, or purchasing an additional property, each has different thresholds and rates.
First-time buyers benefit from relief up to a certain threshold, while buyers of additional properties pay a surcharge on top of standard rates. It’s worth calculating your Stamp Duty liability early, as it needs to be paid on or before completion day.
Use the Martin & Co Stamp Duty calculator to estimate what you’ll owe.
Land Registry fees
Once your purchase completes, your solicitor registers the change of ownership at HM Land Registry. The registration fee is based on the purchase price and is paid as a disbursement through your solicitor.
Related: Understanding solicitors fees: A complete guide for first time buyers
Legal and administrative costs
Conveyancing solicitor fees
You’ll need a solicitor or licensed conveyancer to handle the legal side of your purchase. Fees vary between firms and are usually quoted as a fixed fee for standard transactions. Always ask for a full breakdown upfront, covering both the solicitor’s fee and all disbursements, the third-party costs they pay on your behalf, such as search fees and bank transfer charges.
Searches
As part of the conveyancing process, your solicitor applies for a series of searches including local authority, drainage, environmental, and others depending on the property’s location. These reveal information that won’t show up in a physical inspection and are a standard part of every purchase.
Mortgage arrangement fees
Many mortgage products carry an arrangement or product fee, which can either be paid upfront or added to the loan. Adding it to the mortgage means you’ll pay interest on it over the term, so it’s worth weighing up which option works out cheaper for your situation.
Mortgage valuation fee
Your lender will carry out their own valuation of the property before confirming your mortgage offer. This is to protect their interests, not yours, it doesn’t replace a proper survey. Some lenders include this in the mortgage package; others charge separately.
Related: How to make an offer on a property: a guide for buyers
Property inspection costs
Surveyor’s fees
A mortgage valuation tells the lender the property is worth what you’re paying. A survey tells you what condition it’s actually in. These are two very different things, and skipping a survey is one of the more common and costly oversights buyers make.
There are different levels of survey available:
- A Condition Report is the most basic, suitable for newer properties in good condition.
- A HomeBuyer Report is more detailed and flags visible defects.
- A Full Structural Survey is the most thorough option and is advisable for older properties, those that have been extensively altered, or anything you have concerns about.
The cost varies depending on the type of survey and the property’s size and value, but it’s money well spent. Uncovering a significant issue before exchange gives you the option to renegotiate, ask the seller to rectify it or back out.
Related: How long does a house survey take
Moving and setup expenses
Removal costs
Whether you hire a professional removal firm or rent a van and do it yourself, moving has a cost. For larger moves, a full-service removal company – packing, loading, transporting, and unloading will cost more than a basic van hire but considerably reduces the stress. Get quotes from several firms and book early, particularly if you’re targeting a popular completion date.
Redirecting post and updating records
Updating your address with banks, insurers, HMRC, the DVLA, your GP, and other organisations takes time and, in some cases, a small fee. Royal Mail’s redirect service is worth setting up for a period after you move to catch anything you’ve missed.
Immediate repairs and redecoration
Most buyers have a list of things they want to change or update as soon as they move in. Even a modest redecoration project – fresh paint, new flooring, updated fixtures add up quickly. It’s worth separating the essentials from the nice-to-haves and budgeting for them separately.
Insurance and protection
Buildings insurance
From the day you exchange contracts, you’re legally responsible for the property. Buildings insurance needs to be in place from exchange. Your mortgage lender will require it as a condition of the loan, but it’s also simply sensible protection for an asset you’ve worked hard to buy.
Contents insurance
Buildings insurance covers the structure; contents insurance covers what’s inside it. The two are often sold together and combined, give you comprehensive cover from day one.
Life insurance and income protection
If you’re buying with a mortgage, it’s worth reviewing your life insurance at the same time. Many buyers also consider income protection – a cover that pays out if illness or injury prevents you from working and meeting your mortgage payments.
Neither is compulsory, but both are worth considering as part of the broader financial planning around a purchase.
Related: Home insurance: Everything you need to know
Ongoing recurring costs
The costs of buying a house don’t end at completion. As an owner rather than a tenant, several ongoing expenses now fall to you.
Council tax is payable from the day you move in. The amount depends on the property’s council tax band and your local authority’s rate.
Service charges and ground rent apply if you’re buying a leasehold property, typically a flat. Service charges cover the maintenance of communal areas and the building; ground rent is a charge to the freeholder. Both should be confirmed before exchange, as they can vary significantly.
Utilities and broadband may need to be set up or transferred. It’s worth shopping around at this point rather than simply inheriting the previous owner’s tariffs.
Maintenance and repairs are now your responsibility. A useful rule of thumb is to set aside a small percentage of the property’s value each year for ongoing maintenance, more if the property is older or has systems due for renewal.
Extras and unexpected charges
A few additional costs catch buyers off guard more often than they should.
Mortgage broker fees – if you use a broker to source your mortgage, they may charge a fee for their service. Many brokers are fee-free and earn commission from lenders instead, so it’s important to clarify this upfront.
Gifted deposit documentation – if any part of your deposit is a gift from family, your solicitor will need a signed gifted deposit letter confirming it’s not a loan.
Leasehold-related costs – if you’re buying a leasehold property with a short lease, you may need to factor in the cost of a lease extension sooner than expected. A lease below 80 years can affect both the property’s value and your ability to mortgage it.
Failed transactions – if a purchase falls through after searches and legal work have been carried out, you’ll still owe your solicitor for the work done to that point. This is one of the less visible risks of buying, and it’s essential to understand the potential exposure before you commit.
Budget checklist: planning your total costs
Before you make an offer, it helps to map out all the potential costs in one place. Your total home buying expenses are likely to include:
- Deposit
- Stamp Duty Land Tax
- Solicitor’s fees and disbursements (including searches and Land Registry)
- Mortgage arrangement and valuation fees
- Surveyor’s fees
- Removal costs
- Buildings and contents insurance
- Immediate repairs, redecoration, and furniture
- Council tax and utilities setup
- Service charges and ground rent (if leasehold)
Adding these up before you commit gives you a realistic picture of what buying will cost, and how much you need to have available beyond your deposit on completion day.
Tips for managing the costs of buying a home
Get quotes early
Solicitors, surveyors, and removal firms all vary in price. Shopping around before you’re under time pressure gives you better options.
Don’t skip the survey
The cost of a survey is small relative to the cost of discovering a serious defect after you’ve moved in.
Read the leasehold details carefully
Service charges, ground rent, and lease length all affect the true cost of ownership and should be reviewed before exchange.
Keep a contingency
Even with careful planning, unexpected costs arise. Having a buffer, ideally a few thousand pounds set aside beyond your planned expenditure means a surprise doesn’t derail the purchase.
Talk to your estate agent
A good agent knows the local market and can advise on what’s reasonable, what’s negotiable, and where buyers commonly overspend or get caught out.
If you’d like guidance on buying in your area, speak to your local Martin & Co branch. Our teams know the local market well and are happy to talk through what to expect at every stage of the process.
