The hidden costs of buying a house in the UK (and how to budget smartly)
Buying a home comes with more than just the purchase price. Here’s a complete breakdown of the hidden costs and how to plan your budget wisely.
5 mins read
20-05-2026
Similar Guides
Buying a home is one of the biggest financial commitments you'll ever make, and the purchase price is just the start. From legal fees and surveys to Stamp Duty and removal costs, the additional expenses can easily add £10,000–£30,000 on top of what you've agreed to pay.
Understanding these costs before you make an offer is the difference between a smooth move and a nasty surprise.
Here's a complete breakdown of every cost to factor into your budget when buying a house in the UK.
How much does it really cost to buy a house in the UK?
As a general rule of thumb, budget for an extra 5–7% of the purchase price on top of your deposit to cover all associated fees. On a £300,000 property, that means setting aside up to £21,000 in additional costs (even before you've bought a single piece of furniture).
The main cost categories are:
- Upfront costs before completion (deposit, mortgage fees, survey)
- Legal and tax costs (conveyancing, Stamp Duty, Land Registry)
- Moving and post-completion costs (removals, insurance, setup)
- Ongoing ownership costs (maintenance, service charges, insurance)
We'll cover each in detail below.
Upfront costs before completion
Deposit
The deposit is your biggest upfront outlay. Most buyers put down 5–10% of the purchase price, though putting down 10–20% typically unlocks better mortgage rates.
- 5% deposit on £250,000 property: £12,500
- 10% deposit on £300,000 property: £30,000
First-time buyers with a Lifetime ISA can use the government bonus (25% on savings up to £4,000 per year) towards their deposit, as long as the property costs £450,000 or less.
Note: the government announced in the Autumn Budget 2025 that the LISA will be replaced by a new first-time buyer savings product from April 2028 — existing holders can continue contributing in the meantime.
Mortgage arrangement fee
Charged by your lender for setting up the mortgage product. Also called a product fee.
- Typical range: £500–£2,000
- Can be paid upfront or added to your mortgage, but adding it means paying interest on it over the full term, which costs more in the long run.
Some mortgage products carry no arrangement fee but compensate with a slightly higher interest rate. Always compare the total cost of the deal, not just the headline rate. The MoneyHelper mortgage calculator can help you compare the true cost of different deals.
Mortgage valuation fee
This is your lender's own check that the property is worth what you're offering to pay. It is not a survey — it's done purely for the lender's benefit, not yours.
- Typical range: £150–£1,500, depending on property value
- Some lenders include this for free on certain deals
Survey fee
A survey is the independent assessment of the property's actual condition. It's separate from the lender's valuation and strongly recommended, especially on older or non-standard properties.
There are three main survey types:
Survey Type | What It Covers | Typical Cost |
|---|---|---|
RICS Condition Report | Basic traffic light rating; surface-level issues only | £300–£500 |
RICS HomeBuyer Report | More detailed; flags defects and risks | £500–£900 |
Full Building Survey | Most thorough; recommended for older or unusual properties | £800–£1,500+ |
A survey can uncover issues that allow you to renegotiate the price or pull out of a purchase before you're legally committed. The cost of a survey is almost always worth paying.
All three are regulated by the Royal Institution of Chartered Surveyors (RICS). A survey can uncover issues that allow you to renegotiate the price or pull out of a purchase before you're legally committed — the cost is almost always worth paying.
💡 Pro tip: Not sure which survey you need? Read our guide to home surveys or compare surveying quotes to see what's available in your area.
Legal and tax costs
Conveyancing fees
Your conveyancer (or solicitor) handles all the legal work involved in transferring ownership like property searches, contract review, liaising with the other side, and registering the title at Land Registry.
Fees are made up of two parts: the solicitor's professional charge, and disbursements such as third-party costs like searches and Land Registry fees that are passed through to you.
- Freehold property: £800–£1,500 (professional fee) + £300–£700 (disbursements)
- Leasehold property: £1,200–£2,000 (professional fee) + disbursements — leasehold is more complex and costs more
Always ask for a fully itemised quote that includes disbursements. A headline fee that excludes searches can look cheap but end up more expensive. Conveyancers in England and Wales must be regulated by either the Solicitors Regulation Authority (SRA) or the Council for Licensed Conveyancers (CLC), always verify before instructing.
💡 Pro tip: Compare conveyancing quotes from vetted solicitors in minutes at movingcompared.co.uk/conveyancing.
Stamp duty land tax (SDLT)
Stamp Duty is a government tax on property purchases in England and Northern Ireland. The amount you pay depends on the purchase price and your buyer status (Scotland uses Land and Buildings Transaction Tax; Wales uses Land Transaction Tax).
• First-time buyers: 0% up to £300,000 (as of 2026).
• Others: 5% for properties £300,001–£500,000.
Additional SDLT surcharges apply if you're buying a second home (+3%) or are a non-UK resident (+2%).
For a full breakdown, see our Stamp Duty guide for 2026.
💡Use HMRC’s calculator for accuracy.
Land Registry fee
Once your purchase completes, the new ownership must be officially registered with HM Land Registry.
- Typical range: £20–£910, based on property value
- For a £300,000 property: £270 (online registration)
- Your conveyancer will handle this and include it in their disbursements
Use the official Land Registry fee calculator for an exact figure based on your purchase price.
Moving and post-completion costs
Removal costs
Professional removal companies typically charge based on the volume of your belongings and the distance involved.
- 1–2 bed property, local move: £400–£800
- 3–4 bed property, longer distance: £900–£1,500+
Booking early and being flexible on moving day can reduce costs. If you're moving on a Friday or at the end of the month, expect higher demand and prices.
Buildings insurance
Mortgage lenders require buildings insurance to be in place from exchange of contracts — not just from completion. That means you're insuring a property you don't yet own (but are legally committed to buying). The Association of British Insurers (ABI) provides guidance on what buildings insurance should cover.
Typical cost: £150–£400 per year, depending on property value and location.
Utilities and council tax setup
When you move into a new property, expect potential admin fees or deposits when setting up energy suppliers, broadband, and water accounts. Redirect costs for post, council tax registration, and GP/dentist registration all add up too (typically £50–£200 in one-off setup costs).
Ofgem's energy supplier guide is useful if you're switching suppliers for the first time.
Furnishing and decorating
Even properties listed as "move-in ready" often need work. First-time buyers in particular tend to underestimate this.
- Basic furniture and white goods: £2,000–£5,000
- Decorating or minor repairs: £500–£3,000
- Unexpected issues in first 6 months: Set aside a contingency of at least £1,000–£2,000
Ongoing ownership costs
These aren't hidden per se, but they're easy to forget when you're focused on the upfront budget:
- Mortgage repayments: Your largest monthly outgoing
- Buildings and contents insurance: £300–£700 per year combined, depending on property and coverage
- Annual maintenance: Budget at least 1% of property value per year for ongoing upkeep (so £2,500 per year on a £250,000 home)
- Service charges (leasehold flats): Typically £1,000–£3,000 per year
- Ground rent (leasehold): Varies widely; can be nominal or significant
- Council tax: Varies by property band and local authority; confirm before you buy
💡Pro tip: Always keep an emergency fund equal to 3–6 months of household expenses for unexpected repairs or income gaps.
How to budget effectively
- Build your total acquisition budget before making an offer — combine deposit, SDLT, legal fees, and survey costs into one number and check you can cover it all from savings.
- Get quotes before you're under pressure — request conveyancing and survey estimates while you're still house-hunting, so you're not scrambling once an offer is accepted.
- Never assume "included" — always ask for fully itemised quotes from solicitors. Disbursements can add hundreds to a headline fee.
- Keep a contingency fund — hold back at least 10% of your known costs for delays, unexpected repairs, or last-minute surprises.
- Don't forget the post-completion gap — there's typically a period between exchange and completion when you're paying rent or a mortgage but haven't moved in yet. Factor this in.
Total cost summary: example budgets
Purchase Price | Deposit (10%) | SDLT (First-Time Buyer) | Conveyancing | Survey | Removals | Approx Additional Costs |
|---|---|---|---|---|---|---|
£200,000 | £20,000 | £0 | £1,200 | £600 | £600 | ~£22,400 |
£300,000 | £30,000 | £2,500 | £1,500 | £700 | £800 | ~£35,500 |
£450,000 | £45,000 | £1,800 | £1,800 | £900 | £1,000 | ~£56,200 |
Figures are illustrative estimates only. Actual costs will vary.
Final thoughts
Buying a house isn’t just about saving for the deposit, it’s about anticipating every fee that comes with ownership. By planning ahead, comparing quotes, and working closely with your conveyancer, you’ll stay in control of your budget and avoid nasty surprises before completion.
