Cost of Buying a House UK: Full Breakdown

Why the Deposit Is Only Half the Story

When people talk about the cost of buying a house, the conversation usually stops at the deposit. But the deposit is just the largest line item in a longer list: stamp duty, conveyancing fees, surveys, mortgage arrangement fees, and removals all need to be paid in cash, on top of the deposit, before you get the keys.

Underestimate these and you can end up with an uncomfortable shortfall weeks before completion - the worst possible time to discover you are £3,000 short. Overestimate them and you may delay your purchase unnecessarily.

This guide works through a full cash-needed breakdown for a £300,000 purchase, in two scenarios: a first-time buyer and an existing homeowner moving up. The figures are illustrative and based on typical 2026 costs - always confirm current fees and tax thresholds before you commit.

Stamp Duty: £0 or £5,000 on £300,000

Stamp Duty Land Tax (SDLT) is usually the biggest extra cost, and it varies dramatically depending on who you are. The standard residential bands, current to 2026 (check gov.uk for the latest thresholds before relying on them): 0% on the first £125,000, 2% on the portion from £125,001 to £250,000, and 5% on the portion from £250,001 to £925,000.

On a £300,000 purchase, a home mover buying their only residence pays £5,000: £0 on the first £125,000, plus 2% of the next £125,000 (£2,500), plus 5% of the final £50,000 (£2,500). The tax is charged on slices of the price, not the whole amount - a common misunderstanding.

First-time buyers get relief: currently 0% on the first £300,000 (for properties up to a £500,000 cap), so a first-time buyer paying £300,000 pays £0 in stamp duty. Buyers of second homes or buy-to-let properties face a surcharge of 5 percentage points on top of the standard rates - worth knowing if you are keeping your old flat as a rental.

The Other Fees: Conveyancing, Surveys, Mortgages, Removals

Conveyancing - the legal work of transferring ownership - typically costs £1,000 to £2,000 including disbursements (searches, Land Registry fees) for a straightforward purchase. Leasehold properties or complicated chains can push this higher, and it is worth paying for a solicitor who actually answers the phone.

Surveys come in tiers. A basic condition report starts around £400, a HomeBuyer report (the most common choice) runs roughly £500 to £1,000, and a full structural survey can cost £1,000 to £1,500 or more. On an older property, the fuller survey is usually money well spent - finding a £10,000 roof problem before exchange beats finding it after.

Mortgage arrangement fees range from £0 to around £999, and are often added to the loan rather than paid in cash - but adding them to the loan means paying interest on them for decades, so paying upfront is usually cheaper if you can. Removals vary wildly: a DIY van hire might be a few hundred pounds, while a full professional move for a family home can run £1,000 to £2,000.

Finally, budget for the costs that land just after completion rather than before it: buildings insurance (required by your lender from exchange), contents cover, and the first month of higher outgoings. If you are buying leasehold, check the service charge and ground rent figures early - they are ongoing costs that affect affordability, not one-off fees, but they are frequently overlooked until the solicitor's report arrives.

Two Scenarios: First-Time Buyer vs Home Mover

Scenario one: a first-time buyer purchasing at £300,000 with a 10% deposit of £30,000. Stamp duty is £0 thanks to first-time buyer relief. Add conveyancing of around £1,200, a HomeBuyer survey of about £600, a £999 mortgage arrangement fee, and removals of roughly £700. Total cash needed: approximately £33,500 - the deposit plus about £3,500 in costs.

Scenario two: a home mover buying the same £300,000 property with 25% equity (£75,000) from their sale. Stamp duty is £5,000. Conveyancing is slightly higher at around £1,500, the survey about £600, the arrangement fee £999, and removals for a larger household around £1,200. Total cash needed: approximately £84,300.

The mover's headline figure looks far bigger, but remember they are also paying estate agent fees (typically 1 to 1.5% of their sale price) and possibly an early repayment charge on their old mortgage - both worth budgeting for separately. In both scenarios, keeping a few thousand pounds in reserve for the unexpected - a delayed chain, a last-minute repair the survey flags - is simple prudence.

First-Time Buyer Relief Tips

First-time buyer stamp duty relief is generous but has hard edges. The relief only applies to properties costing up to £500,000 - buy at £500,001 and you lose it entirely and pay standard rates on the whole price. If you are buying near that boundary, it can be worth negotiating the price down to stay under the cap.

Relief applies per buyer, not per property: if you are buying jointly and one of you has owned before, neither of you qualifies. And if your purchase completes after a rule change, the rules at completion apply - so keep an eye on Budget announcements if your purchase spans one.

On the deposit side, the single biggest lever on your monthly payment is how much you put down - our guide on how much deposit you need for a UK mortgage in 2026 walks through the minimum 5%, why 10 to 15% unlocks meaningfully better rates, and how deposit size changes what you can borrow.

• How much deposit do you need for a UK mortgage in 2026?

Run Your Own Numbers

Every purchase is different - different price, different deposit, different rate. Our free UK mortgage calculator lets you plug in your own figures and see the monthly payment, total interest, and how the numbers shift as you adjust the deposit or term.

Use it alongside your costs budget to make sure the mortgage payment fits comfortably after all the one-off buying costs are paid.

• Open UK Mortgage Calculator

Sources

The figures and policy details in this article come from the following primary sources, checked at the time of writing.

• GOV.UK: Stamp Duty Land Tax