The price on the listing is the first number to fix in a home purchase budget, but it is not the last. A set of one-off and ongoing costs sits on top, and some of them are legally fixed by where the property is.
Stamp duty depends on where the home is
In England and Northern Ireland, buyers pay Stamp Duty Land Tax (SDLT). Scotland charges Land and Buildings Transaction Tax (LBTT) and Wales charges Land Transaction Tax (LTT); each has its own bands and reliefs. The bands below are the standard SDLT residential rates for transactions from 1 April 2025.
| Portion of the price | Standard rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5 million | 10% |
| Above £1.5 million | 12% |
First-time buyers pay 0% up to £300,000 and 5% on the portion from £300,001 to £500,000. If the price is above £500,000, the relief is not available and the standard rates apply to the whole price. Higher rates apply to additional residential properties.
Worked examples under the standard and first-time-buyer rules:
| Purchase price | Standard SDLT | First-time buyer SDLT |
|---|---|---|
| £250,000 | £2,500 | £0 |
| £300,000 | £5,000 | £0 |
| £400,000 | £10,000 | £5,000 |
| £500,000 | £15,000 | £10,000 |
| £600,000 | £20,000 | £20,000 (relief not available) |
SDLT is normally due within 14 days of completion and is usually handled by the solicitor or conveyancer, who adds it to the funds you need to send.
The costs that come with every purchase
- Legal fees. A solicitor or licensed conveyancer handles the transfer, checks the title and carries out searches. Quotes should show fees, disbursements and VAT separately.
- Searches and Land Registry fees. Local authority, drainage and environmental searches are paid for as part of the process, and the Land Registry charges a fee to register the new owner.
- A survey. RICS offers three levels of home survey: a condition report, the HomeBuyer report and a full building survey. Older, unusual or altered properties generally justify a fuller survey, because the cost of finding a problem after completion is far higher.
- Mortgage costs. A lender’s valuation, product or arrangement fee and any broker fee. Adding a fee to the loan means paying interest on it for the whole term, which the mortgage rate and term examples show can be expensive.
- Moving and set-up costs. Removals, redirecting post, new furniture, and the repairs and decoration that a new home often needs.
- Buildings insurance, which a mortgage lender will usually require from exchange of contracts.
Costs that continue after you move in
If the property is leasehold, check the ground rent, service charge, remaining lease length and any planned major works before offering. Short leases can be expensive to extend, and service charges can rise. For freehold homes, set aside money for maintenance, which tends to be lumpy: a boiler, a roof or damp can arrive without warning. Council tax, utilities and contents insurance also differ from what many renters have been paying.
Help that can change the budget
The Lifetime ISA offers a 25% government bonus on up to £4,000 a year for people aged 18 to 39, and can be used towards a first home costing up to £450,000. Some employers and lenders offer schemes with smaller deposits, but a lower deposit usually means a higher interest rate, so compare the whole cost.
A simple budgeting approach
- Start with the deposit you will put down.
- Add stamp duty from the table, or the LBTT or LTT calculator if buying in Scotland or Wales.
- Add legal, survey and mortgage fees, using written quotes where possible.
- Add moving and set-up costs, and keep a contingency for early repairs.
- Compare the total with your savings, not just the deposit.
Costs like these are a large part of why renting and buying are hard to compare: they are paid once, up front, and they affect how long you need to stay for buying to make sense.
This is general information, not personalised financial or property advice. Tax rates, bands and reliefs change; check current figures with GOV.UK, Revenue Scotland or the Welsh Revenue Authority.
Sources: GOV.UK, Stamp Duty Land Tax residential property rates; Revenue Scotland and Welsh Revenue Authority guidance on LBTT and LTT; RICS guidance on home survey levels; GOV.UK guidance on the Lifetime ISA.
