Buying a home isn’t just about saving for a deposit and securing a mortgage — additional costs can quickly add up. These expenses are essential to factor into your budget, from legal fees and surveys to stamp duty and moving costs. Failing to prepare for them could lead to unexpected financial strain just as you’re ready to move.
Here’s a comprehensive breakdown of the costs you must budget for when buying a home.
Stamp duty
From April 1, 2025, updated Stamp Duty Land Tax (SDLT) rates will increase costs for some buyers, particularly first-time buyers, as the 0% exemption threshold drops from £425,000 to £300,000. This means many buyers will now need to budget for an additional upfront cost when purchasing a home.
How will this impact your home-buying budget?
- First-time buyers purchasing above £300,000 will pay stamp duty, whereas previously, they were exempt up to £425,000.
- For example, a £400,000 home for a first-time buyer will incur £5,000 in SDLT, compared to £0 under the current rules.
- Buyers of second homes or buy-to-let properties will continue to pay a higher surcharge on top of standard SDLT rates.
Since stamp duty must be paid upon completion, it’s essential to budget for this cost upfront to avoid unexpected financial strain. If you’re buying in 2025, factoring in these new rates early will help ensure a smoother home-buying process.
Property taxes
Council Tax is one of the first expenses you’ll face when buying a home. This local tax, paid to your council, funds essential services like waste collection, road maintenance, and emergency services.
How much will it cost?
- Your Council Tax bill depends on your property’s valuation band, which ranges from A (cheapest) to H (most expensive).
- In England, these bands are based on property values from April 1991.
- The average Band D bill is £2,171 per year (around £180 per month).
Can you get a discount?
- If you live alone, you may qualify for a 25% discount, reducing your bill significantly.
- Other reductions may also be available, such as Council Tax Reduction (CTR) for low-income households.
Checking your Council Tax band and available discounts with your local council ensures you’re not paying more than necessary.
Valuation costs
When applying for a mortgage, your lender will conduct a property valuation to ensure the home is worth the amount you’re borrowing. This helps them determine whether the property is a suitable security for the loan.
How much does a valuation cost?
- Some lenders include the valuation for free as part of their mortgage deal.
- If a fee is required, costs typically range from £150 to £800, depending on the property’s value.
- For example, a valuation on a £300,000 home may cost around £200.
- In some cases, a RICS-registered surveyor may be required, such as for Help to Buy properties, which could increase the cost.
Since a mortgage valuation is not a complete structural survey, it won’t highlight potential issues. If you want a more detailed assessment, consider a homebuyer’s report or a full structural survey before committing to a purchase.
Survey costs
Before committing to a property, arranging a survey is always a good idea. A professional survey can help uncover potential structural issues and save you thousands of unexpected repair costs. Sometimes, it might even prevent you from making a costly mistake.
How much does a survey cost?
Survey costs typically range from £400 to £1,500, depending on the level of detail required. There are three main types of surveys:
Level 1 Survey: Condition Report (£400 – £950)
- A basic survey that provides a general overview of the property’s condition.
- Highlights major issues but doesn’t go into much detail.
- Ideal for newer homes in good condition.
Level 2 Survey: HomeBuyer Report (£400 – £1,000)
- Suitable for modern properties under 50 years old that appear to be in reasonable condition.
- Includes a detailed assessment of any defects and potential repair costs.
Level 3 Survey: Building Survey (£600 – £1,500)
- The most comprehensive survey offers a detailed inspection of the home.
- Recommended for older properties, period homes, or properties in poor condition.
- More expensive, but it could save you money in the long run by identifying hidden problems.
Why get a survey?
Even if a home looks fine on the surface, a survey can reveal hidden defects, such as damp, subsidence, or outdated wiring, that may require costly repairs. Having this information upfront allows you to:
- Negotiate a lower price based on the findings.
- Request repairs from the seller before exchange.
- Make an informed decision before committing to the purchase.
Mortgage fees
When securing a mortgage, there are various upfront fees that lenders charge to process your application and finalise your loan. These costs can vary significantly depending on the lender, mortgage type, and loan amount, so it’s important to compare offers carefully before committing.
What fees should you expect?
- Mortgage arrangement fee – A one-time charge for setting up the mortgage, typically £1,000 to £2,000+. Some lenders allow you to add this to your loan, which means paying interest on it over time.
- Mortgage booking fee – A smaller reservation fee, usually £100 to £200, which secures your mortgage deal.
- Valuation fee – Covers the lender’s property valuation to ensure the home is worth the loan amount. Costs range from £150 to £800, depending on the property’s value and type.
These fees can quickly add up, so it’s worth checking if any lenders offer reduced or no-fee mortgage deals to help lower your upfront costs. Some lenders waive certain fees for first-time buyers or specific mortgage products, so shopping around could save you a significant amount.
Speak with a mortgage advisor to learn more
Legal
Buying a home is a legal process, and having the right legal support ensures everything is handled correctly. A solicitor or conveyancer handles the paperwork, ensuring the property transfer is legally sound and free from disputes.
What do legal fees cover?
- Conveyancing fees – Around £2,000, covering legal work, handling contracts, and liaising with the seller’s solicitor.
- Title search fees vary depending on the property but are essential to confirm no outstanding legal claims or ownership issues.
- Title insurance – Protects against future ownership disputes, offering peace of mind that your home is legally yours.
While legal fees add to your upfront costs, they help prevent costly issues later, ensuring a smooth and secure home-buying experience.
Insurance
Home insurance is more than just a safety net — it’s often a requirement from mortgage lenders to protect your home. It provides financial security in case of unexpected damage or loss, helping you recover from costly incidents.
What are the types of home insurance?
- Buildings insurance – Covers the structure of your home, including walls, roofs, windows, and permanent fixtures, against risks like fire, flooding, storm damage, and subsidence.
- Contents insurance – Protects your belongings, including furniture, electronics, jewellery, and appliances, in case of theft, fire, or accidental damage.
How much does home insurance cost?
- The average home insurance cost is around £35 per month
- Costs vary based on:
- Property type – Detached homes typically cost more to insure than flats.
- Location – Areas prone to flooding or burglary may have higher premiums.
- Security measures – Homes with security alarms, smart locks, or CCTV may qualify for lower rates.
Some providers offer discounts if you bundle buildings and contents insurance into a single policy, so comparing quotes can help you find the best deal.
Removal costs
Moving home comes with its own set of costs, and how much you spend depends on how much you’re moving and whether you do it yourself or hire professionals. While a DIY move can save money, it can also be time-consuming and physically demanding. Hiring a removal company makes the process smoother but comes at a higher cost.
How much does moving cost?
- DIY move – Hiring a van starts from £10 an hour, but moving a full household may require a full day of rental. Don’t forget to budget for packing materials like boxes and tape.
- Standard removal services – If you pack yourself and hire a removal company to transport everything, expect to pay around £1,200 for a three-bedroom house.
- Full-service removals – Some companies offer packing, transporting, and unpacking services, but this premium package can cost several thousand pounds.
How to save on removal costs?
- Declutter before you move – Many removal companies charge based on volume, so reducing unnecessary items can lower your quote.
- Compare quotes – Get estimates from multiple removal companies to find the best price and service for your needs.
- Book in advance – Last-minute bookings can be expensive, so try to schedule your move early to secure a better deal.
Whether you move everything yourself or hire professionals, planning ahead and factoring in these costs ensures a smooth, stress-free move.
Buying a home is one of the biggest financial commitments you’ll ever make. While the deposit and mortgage repayments are often the main focus, being aware of the additional costs ensures you’re financially prepared for the journey ahead.
For expert advice on buying your next home, contact your nearest Whitegates branch today.
