When buying a property in the UK, it’s easy to focus only on the purchase price and deposit. But you also need to budget for transactional costs, expenses like Stamp Duty Land Tax (SDLT), legal fees, and surveys, which can amount to several thousand pounds.
At S J Smith Estate Agents, we want our clients to be prepared for every stage of the purchasing journey. Here’s a clear breakdown of the main costs to expect, with up-to-date figures as of August 2025.
Stamp Duty Land Tax (SDLT)
Stamp Duty can be one of your biggest extra costs. You pay SDLT at these rates if, after buying the property, it is the only residential property you own. You usually pay 5% on top of these rates if you own another residential property.
First-time buyers now pay 0% on properties up to £300,000; then 5% on the portion between £300,001 and £500,000. If the price is over £500,000, you cannot claim the relief and follow the rules for standard buyers.
Standard buyers:
| Property or lease premium or transfer value | SDLT rate |
|---|---|
| Up to £125,000 | Zero |
| The next £125,000 (the portion from £125,001 to £250,000) | 2% |
| The next £675,000 (the portion from £250,001 to £925,000) | 5% |
| The next £575,000 (the portion from £925,001 to £1.5 million) | 10% |
| The remaining amount (the portion above £1.5 million) | 12% |
Stamp Duty must be paid within 14 days of completion, typically handled by your solicitor.
Legal Fees and Conveyancing Costs
You’ll need to hire a solicitor or licensed conveyancer to manage the legal aspects of buying your home. Current Property Solvers‘ annual research of 100 firms (in England and Wales) has revealed that:
- Average conveyancing fees (inclusive of VAT):
- Freehold property (buying + selling): around £1,190 – £1,256
- Leasehold property: slightly higher, about £1,505 – £1,587
Survey Costs
While not mandatory, a property survey is highly recommended to uncover any structural issues before you buy. Average costs in 2025 according to the HomeOwners Alliance are:
- RICS Level 1 (Condition Report): from around £300–£900, depending on property and location.
- RICS Level 2 (Homebuyer Report): usually falls between £377–£506.
- RICS Level 3 (Building or Structural Survey): ranges from £500–£1,500, occasionally even higher depending on age, size, and location of the property.
Other Costs to Budget For
Additional expenses to keep in mind include:
- Mortgage fees: Arrangement, valuation, and booking fees can add up to £500–£2,000 according to MoneyWeek, check with your lender.
- Removal costs: Typically £500–£1,500 according to MoneyWeek, depending on property size and distance.
- Buildings insurance: Often required by your lender from exchange.
- Broker fees: Typically around £300–£500.
Why Planning Ahead Matters
At S J Smith Estate Agents, our goal is to ensure your home-buying journey is transparent and worry-free. Understanding these costs helps you budget accurately and avoid surprises on completion day.
Relevant Links for Further Reading
- Helpful breakdowns of buying costs, including conveyancing and removal costs: MoneyWeek “cost to move house” available at MoneyWeek
- Official SDLT guidance: available at GOV.UK
- Detailed survey cost breakdowns: RICS and Compare My Move: available at RICSCompare My Move
- Conveyancing cost averages available at: Property Solvers