Buying a house is a major decision.
It requires carefully managing your finances.
Understanding the costs of buying a house helps you to do that.
Let’s take a look at what those are.
1. Solicitor
You almost always need a solicitor when you buy or sell a house.
The only exception is if you have the legal expertise and experience to do what they do, i.e., if you are a solicitor…
And what do they do? Their main tasks include:
- Carry out searches
- Transfer funds
- Draft legal documents
- Enable the exchange of contracts.
There’s also the invaluable advice they can give during the process. And they communicate on your behalf with the seller’s solicitors throughout the process.
Average solicitor costs
A solicitor costs around £1,500 on average when buying a house.
2. Mortgage fees
Getting a mortgage brings several charges.
Your mortgage provider will charge an arrangement fee. And if you use a mortgage broker, there will be a booking fee.
Average mortgage fees costs
The arrangement fee is roughly £1,250. And the mortgage broker’s typical price is around £700.
On average, a booking fee costs around £150.
3. Survey costs
A survey is slightly different to searches. So, this isn’t covered in your solicitor’s costs.
There are also several different types of survey.
Surveyors inspect the house you’re buying and create a report on everything that’s wrong with it.
You can use this to negotiate a better value for the house. So, even if it costs you money, you may recoup some of this elsewhere.
Average survey costs
There are three different levels of survey. This correlates to cost.
- A level 1 survey focuses only on conditions. This costs around £400.
- A level 2 survey gives more detail. This costs around £525 on average.
- A level 3 survey provides the most information about the house you’re buying. £650 is a common price for this.
4. Removal company
Some homeowners hire rental vans and organise their moves themselves. Others rely on removal companies.
These companies provide transport and manpower. Their workers will pack up and unload your furniture and other belongings.
This helps you avoid missing your deadline for vacating your property and injuring your back…
Average removal company costs
House removal costs vary based on the number of items and the distance you travel.
A relatively small move may only cost around around £500. (For example, moving between one-bedroom flats in the same town.)
For larger moves, the price will go up to £1,500 on average. (For example, transporting items from a 4-bedroom house for 100 miles.)
5. Stamp duty
From April 1st 2025, when you buy a house valued at over £125,000, you typically pay stamp duty on it.
The main exception is for first-time buyers, who don’t pay any up to a £300,000 value house.
You can calculate the stamp duty you’ll need to pay using the government’s stamp duty calculator.
Average stamp duty costs
Keep in mind that the UK government will occasionally change these thresholds.
It’s worth checking that the goalposts haven’t moved, just to be sure.
Up until March 31st 2025, the rates are as follows :
- (Properties with a value) up to £250,000: 0
- £250,001 to £925,000: 5%
- £925,001 to £1.5 million: 10%
- Above £1.5 million: 12%.
6. Purchase price (including deposit)
The largest cost when buying a house is the purchase price.
Your primary cost is the deposit you put down and the mortgage fees involved (listed above).
Average deposit costs
Most lenders expect a 10% deposit on a house, at least.
7. Insurance on your new house
You may already have insurance on your previous house. But you’ll need to take out a new policy on the property you’re buying.
The price depends on the type of insurance you take out.
Home insurance usually involves contents insurance and building insurance.
Average home insurance costs
If you get both, the average price is around £260 per year.
8. Council tax and other bills
You’ll need to contact the local council area you’re moving into to determine how much this cost will be. They will tell you your property’s council tax band and rates.
Other fees impacted by your location include water, electricity and gas bills.
Average council tax costs
The average is above £2,000 per year.
