How much does it cost to move home?
When it comes to moving home, there are a range of costs that you’ll need to factor in when doing the sums to see what you can afford and how much you need to save.
The main cost associated with buying a house is the deposit. This is typically a minimum of 5% of the cost of your new home. However, the bigger the deposit you put down when buying, the more you’ll save in the long term and the more likely you are to get accepted for a mortgage.
You can read more about how your deposit size and other factors impact your chances of getting a mortgage here.
Stamp Duty Land Tax (SDLT) is paid when you buy a home over the price of £125,000 in the UK.
If you’re a first-time buyer, you are exempt from paying stamp duty on any home up to the value of £300,000. If you’re buying a first home worth up to £500,000, you’ll only need to pay SDLT on the last £200,000.
Stamp duty is calculated in bands as follows:
|Price of the home||Stamp duty rate||Cost|
|Up to £125,000||0%||£0|
|£125,000 - £250,000||2%||£0-£2,500|
|£250,000 - £925,000||5%||£2,500-£36,250|
|£925,000 - £1,500,000||10%||£36,250-£93,750|
You only pay each rate for the segment of the price that falls in that band. For example, on a house that costs £275,000, you would pay:
0% on the first £125,000= £0
2% on the next £125,000= £2,500
5% on the final £25,000= £1,250
So, the total stamp duty you would pay is £3,750.
When you buy a home, you’re required to enlist a property surveyor to check the property. Depending on the depth of survey you choose, this could cost between £250 and £600.
The four main home survey types are:
* Condition Report – £250. This is a top-level report that just gives you a basic indication of the property condition using a traffic light system. A valuation is also included.
* HomeBuyer Report – £400. The surveyor will take a more in-depth look at your new home, but will not check behind walls, under floorboards or behind furniture. A valuation is not usually included.
* Home Condition Survey – £400-£500. Using a 1-3 rating system, issues in the property are rated based on seriousness. The surveyor may also offer advice on the issues highlighted and how they can be dealt with as part of the report. A valuation is not usually included.
* Building Survey – £600+. The surveyor will move furniture and check behind walls/under flooring for hidden defects. They will also offer their advice on how the defects can be dealt with as well as a valuation of the property.
The survey you choose may depend on the age of the property. Older homes may require a more in-depth survey to make sure all hidden issues are addressed before you buy, whereas a new build home would suit a more basic report and valuation.
|Price of the home||Valuation Fee|
When you’re buying a home with a mortgage, another requirement is to get a valuation to ensure the property is worth what you’re asking the bank to lend you for it.
If one doesn’t come as part of your mortgage deal or home survey, you’ll need to pay for one. This cost is usually calculated based on the value of the home:
Solicitor and conveyancing fees
The average solicitor fees when buying a home are £950. The conveyancing fees are typically based on the value of the property, so the cost may vary. On top of these, you’ll pay fees for searches and land registry updates. If your new home is leasehold, you will pay extra because of the additional paperwork involved.
|Price of the home||Average conveyancing costs (Freehold)||Average conveyancing costs (Leasehold)|
|Up to £125,000||£415||£750|
Additional solicitor costs:
Search Fees – £250. Various searches will be conducted through local authorities and others to identify anything that may affect your property, for example planning bids in the area.
Land Registry Fees – £40-£910. This price varies depending on the value of your property. The solicitor will update the official documents help by the land registry.
Take a look at our guides to budgeting to buy a new home and how to save for buying a new home.