UK Property Buying Costs 2025: Complete Fees Guide
Everything you need to budget for when buying a property in the UK: stamp duty, legal fees, surveys, mortgage costs, and all the hidden charges that add up at completion.
Contents
- Overview: total costs at a glance
- Stamp duty land tax 2025/26
- First-time buyer stamp duty relief
- Second home and buy-to-let surcharge
- Solicitor and conveyancing fees
- Survey costs
- Mortgage arrangement and valuation fees
- Other costs: removals, insurance, and more
- Worked cost examples by purchase price
- Frequently asked questions
Overview: Total Property Buying Costs at a Glance
Buying a property in the UK involves significantly more than the purchase price and deposit. The typical buyer faces between 2% and 5% of the property price in additional costs on top of the deposit. For a £300,000 property, this means budgeting for an additional £6,000 to £15,000 in fees and charges.
Stamp Duty
Solicitor Fees
Survey
Mortgage Fees
Other Costs
Stamp Duty Land Tax (SDLT) 2025/26
Stamp Duty Land Tax (SDLT) is the biggest single additional cost for most property buyers. It is a tax on the purchase of land and property in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) with different rates.
From 1 April 2025, the nil-rate threshold returned to its pre-pandemic level of £125,000 (having been temporarily £250,000 between September 2022 and March 2025). The current standard rates for 2025/26 are:
| Purchase Price Band | Standard SDLT Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
SDLT is Calculated on a Slice Basis
SDLT is calculated on each portion of the price within each band, not the whole price at the higher rate. For example, on a £400,000 purchase:
SDLT Calculation: £400,000 Standard Purchase
| 0% on first £125,000 | £0 |
| 2% on £125,001 to £250,000 (£125,000) | £2,500 |
| 5% on £250,001 to £400,000 (£150,000) | £7,500 |
| Total SDLT | £10,000 |
First-Time Buyer Stamp Duty Relief
First-time buyers in England benefit from a reduced stamp duty threshold. For purchases completed from 1 April 2025:
| Purchase Price Band | First-Time Buyer Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Over £500,000 | Standard rates apply from £0 — no relief |
SDLT for First-Time Buyer: £350,000 Purchase
| 0% on first £300,000 | £0 |
| 5% on £300,001 to £350,000 (£50,000) | £2,500 |
| Total SDLT (first-time buyer) | £2,500 |
| Standard rate SDLT (for comparison) | £7,500 |
| Saving from first-time buyer relief | £5,000 |
Second Home and Buy-to-Let Surcharge
If you already own a residential property (or jointly own one with another person) and are buying an additional residential property, you pay a 3% SDLT surcharge on top of the standard rates across the entire purchase price. This applies to second homes, buy-to-let investments, and holiday homes.
| Purchase Price Band | Standard Rate | With 3% Surcharge |
|---|---|---|
| Up to £125,000 | 0% | 3% |
| £125,001 to £250,000 | 2% | 5% |
| £250,001 to £925,000 | 5% | 8% |
| £925,001 to £1,500,000 | 10% | 13% |
| Above £1,500,000 | 12% | 15% |
SDLT for Buy-to-Let: £300,000 Purchase
| 3% on first £125,000 | £3,750 |
| 5% on £125,001 to £250,000 (£125,000) | £6,250 |
| 8% on £250,001 to £300,000 (£50,000) | £4,000 |
| Total SDLT (buy-to-let surcharge) | £14,000 |
| Standard rate for comparison | £5,000 |
| Additional cost from surcharge | £9,000 |
Solicitor and Conveyancing Fees
You must instruct a solicitor or licensed conveyancer to handle the legal transfer of property ownership. This process is called conveyancing. The fees charged cover the legal work of transferring title, conducting searches, liaising with the seller's solicitor, dealing with your mortgage lender, and registering the new title at the Land Registry.
| Cost Element | Typical Range | Notes |
|---|---|---|
| Solicitor's legal fee | £850 to £2,000 | Excluding VAT; varies by property value and complexity |
| VAT (20%) | £170 to £400 | On the legal fee element |
| Local authority search | £100 to £400 | Varies by local authority |
| Water and drainage search | £30 to £80 | Checks sewers and water infrastructure |
| Environmental search | £40 to £80 | Checks for flood risk, contamination |
| Land Registry fee | £20 to £910 | Set fee scale based on purchase price |
| Electronic transfer (CHAPS) | £25 to £50 | For transfer of completion monies |
| Typical total | £1,500 to £3,000 | Including VAT and disbursements |
Land Registry Fee Scale
| Purchase Price | Land Registry Fee (electronic) |
|---|---|
| Up to £80,000 | £20 |
| £80,001 to £100,000 | £40 |
| £100,001 to £200,000 | £100 |
| £200,001 to £500,000 | £270 |
| £500,001 to £1,000,000 | £540 |
| Over £1,000,000 | £910 |
Survey Costs
A property survey is separate from the mortgage lender's valuation and is commissioned by you to assess the condition of the property. While a survey is not legally required, it is strongly recommended — particularly for older properties or properties that may need work. Discovering structural problems after exchange of contracts is extremely costly.
| Survey Type | RICS Level | Typical Cost | Best For |
|---|---|---|---|
| Condition Report | Level 1 | £300 to £500 | New builds and recently built conventional properties |
| HomeBuyer Report | Level 2 | £400 to £900 | Standard properties in reasonable condition |
| Building Survey | Level 3 | £700 to £1,500+ | Older properties, unusual construction, properties needing work |
Mortgage Arrangement and Valuation Fees
When you take out a mortgage, the lender may charge various fees. These can add significantly to the upfront cost of buying.
| Fee Type | Typical Range | Notes |
|---|---|---|
| Mortgage arrangement / product fee | £0 to £2,000 | Some fee-free products available; higher fee often means lower rate |
| Mortgage valuation fee | £150 to £1,500 | Many lenders offer free valuations; cost scales with property value |
| Mortgage broker fee | £0 to £500 | Some brokers are fee-free (paid by lender); independent brokers may charge |
| Higher Lending Charge (HLC) | £0 to 1.5% of mortgage | Charged by some lenders for high LTV (e.g., 95%) mortgages. Less common now. |
Other Costs When Buying a Property
Beyond the major fees, a range of smaller costs can add up to several thousand pounds. Do not overlook these when budgeting.
| Cost | Typical Range | Notes |
|---|---|---|
| Removal costs | £500 to £2,500+ | Depends on volume of possessions and distance |
| Buildings insurance | £150 to £400/yr | Required by mortgage lenders from exchange or completion |
| Contents insurance | £50 to £300/yr | Recommended; covers your belongings |
| Mortgage life insurance | £10 to £50+/month | Recommended to cover mortgage if you die; also consider critical illness cover |
| Utility setup fees | £0 to £200 | Meter readings, switching tariffs, broadband setup |
| Immediate repairs/decorating | £500 to £5,000+ | Factor in pre-move-in work needed |
| Homebuyer protection insurance | £30 to £150 | Covers your survey and legal costs if the sale falls through |
Worked Cost Examples by Purchase Price
Example 1: First-Time Buyer, £250,000 Flat
Using a 90% LTV mortgage, standard HomeBuyer survey, instructing a solicitor.
| Stamp duty (first-time buyer, £250k) | £0 |
| Solicitor fees (inc. searches, Land Registry) | £2,000 |
| HomeBuyer survey (Level 2) | £600 |
| Mortgage arrangement fee | £999 |
| Mortgage valuation (free on this product) | £0 |
| Removal costs | £800 |
| Buildings insurance (year 1) | £200 |
| Total buying costs (excl. deposit) | £4,599 |
| As % of purchase price | 1.8% |
Example 2: Home Mover, £500,000 House
Not a first-time buyer, standard rates apply, building survey commissioned.
| Stamp duty (standard rates) | £15,000 |
| Solicitor fees | £2,500 |
| Building survey (Level 3, 1930s semi) | £1,000 |
| Mortgage arrangement fee | £1,499 |
| Mortgage valuation | £500 |
| Removal costs | £1,500 |
| Buildings insurance (year 1) | £300 |
| Total buying costs (excl. deposit) | £22,299 |
| As % of purchase price | 4.5% |
Example 3: Buy-to-Let Investor, £300,000 Property
Existing property owner, second home surcharge applies, no residential mortgage (bridging for illustration).
| Stamp duty (with 3% surcharge) | £14,000 |
| Solicitor fees | £2,200 |
| HomeBuyer survey | £700 |
| Buy-to-let mortgage arrangement fee | £1,500 |
| Mortgage valuation | £400 |
| Landlord buildings insurance (year 1) | £350 |
| Total buying costs (excl. deposit) | £19,150 |
| As % of purchase price | 6.4% |
Frequently Asked Questions
Standard SDLT rates for 2025/26: 0% on first £125,000; 2% on £125,001 to £250,000; 5% on £250,001 to £925,000; 10% on £925,001 to £1.5 million; 12% above £1.5 million. First-time buyers pay 0% up to £300,000, then 5% to £500,000. Second homes attract an additional 3% surcharge on all bands.
Solicitor conveyancing fees typically range from £1,500 to £3,000 including VAT and disbursements. The legal fee itself is usually £850 to £2,000 plus VAT, with additional costs for searches (local authority, water, environmental), Land Registry fees, and bank transfer charges. Shop around for quotes but be wary of unusually cheap quotes that may have hidden extras.
Three levels: Level 1 Condition Report (£300 to £500, best for new builds); Level 2 HomeBuyer Report (£400 to £900, most popular for standard properties); Level 3 Building Survey (£700 to £1,500+, for older or unusual properties). Always use an RICS-registered surveyor. The lender's valuation is not a structural survey — you need your own independent survey.
A mortgage arrangement fee (product fee) is charged by the lender for setting up your mortgage. Fees range from £0 to £2,000. A higher fee is often paired with a lower interest rate. Calculate the true cost over your initial mortgage term to see which product is cheapest in total. You can usually add it to the mortgage balance, but you will then pay interest on it.
First-time buyers pay 0% stamp duty on the first £300,000 and 5% on the portion from £300,001 to £500,000. Properties over £500,000 do not qualify for first-time buyer relief and standard rates apply in full. To qualify, all buyers must be genuine first-time buyers who have never owned a residential property anywhere in the world.
For a first-time buyer purchasing at £250,000, total costs excluding deposit are typically around £4,000 to £5,000 (1.6% to 2%). For a home mover at £500,000, total costs including stamp duty are typically £18,000 to £25,000 (3.6% to 5%). For a buy-to-let investor, the 3% surcharge pushes the percentage significantly higher — often 5% to 7% of the purchase price.
Yes. If you already own a residential property and are buying an additional one, you pay a 3% SDLT surcharge on top of the standard rates on the entire purchase price. On a £300,000 purchase this adds £9,000 in extra stamp duty compared to a standard purchase. The surcharge applies to second homes, buy-to-let, and holiday properties.