When I was younger, I always thought you needed about £10,000 to be able to buy a house. Back then you could get a flat or small house for around £100k where I lived in Leeds. This was around 2010 and things have changed a lot since then.
I aimed for that 10% figure and I was naive to the real costs of getting a mortgage.
Update 2025: House prices have continued to rise dramatically. The average UK house price is now £292,000 (according to the latest data), and the true cost of buying a house is much more than just the deposit. In fact, the average cost of buying a house in 2025 is £37,486 when you factor in all the additional fees and costs!
Now I live in York, it’s been over a decade since I first started thinking about buying, and house prices are much more expensive. We’re talking £300k for a small terraced house with a tiny garden. It’s insane. But house prices and the deposit you need aren’t my focus for this blog post.
It’s all the other hidden costs of buying a house that catch people out.
Let’s see exactly how much buying a house costs in 2025.
How Much Does Buying a House Cost? Quick Summary
Before we dive into the details, here’s a quick overview of how much buying a house costs in the UK:
For a property costing the UK average of £292,000:
- Deposit (10%): £29,200
- Stamp Duty: £4,600 (or £0 if you’re a first-time buyer!)
- Conveyancing/Solicitor Fees: £500-£1,150 + £250-£700 disbursements
- Survey Costs: £250-£1,500 depending on survey type
- Mortgage Fees: £0-£2,000+ (varies by lender)
- Removal Costs: £300-£1,500
- Other costs: Insurance, mortgage broker fees, etc.
Total upfront costs (excluding deposit): £8,286-£23,885
Total with deposit: £37,486-£53,085
So when people ask “how much does buying a house cost?”, the answer isn’t just the house price or the deposit – it’s significantly more!
The Deposit: How Much Money Do You Need to Buy a House?
On average, you’ll need a 10% deposit of the cost of the house. The average price of a house in the UK is £292,000 according to recent data (January 2025). Let’s use £300,000 to make the maths easier for our examples.
So you need £30,000 for a 10% deposit.
You can get mortgages with a 5% deposit (£15,000 on a £300k property), but they are often trickier to get and the interest rate can be higher. There are even some 100% mortgages available (usually guarantor mortgages), though these are rare.
The more deposit you can save, the better the interest rate you’ll get.
How Much Deposit Do You Really Need?
It depends on the property price and location:
- Low-cost homes: £5,000-£10,000 deposit
- UK average home (£292,000): £14,600-£29,200 deposit (5-10%)
- London/expensive areas: £40,000-£50,000+ deposit
First-time buyer tip: Look into Lifetime ISAs which give you a 25% government bonus on savings up to £4,000 per year. That’s free money towards your deposit!
Stamp Duty Land Tax: One of the Biggest Costs of Buying a House
Stamp duty makes me want to cry. Stamp duty is a lump sum tax you have to pay when you buy a property. You have to pay even more if it’s a second property.
From April 1st, 2025, stamp duty rates changed:
Stamp Duty Rates in England & Northern Ireland (2025)
- £0 – £125,000: 0%
- £125,001 – £250,000: 2%
- £250,001 – £925,000: 5%
- £925,001 – £1,500,000: 10%
- Over £1,500,000: 12%
First-Time Buyer Stamp Duty Relief
Good news for first-time buyers! You pay no stamp duty on properties up to £300,000 (with a maximum purchase price of £625,000).
This is a HUGE saving. For a £300,000 property, a first-time buyer would save £2,500 in stamp duty!
Stamp Duty Examples
£200,000 property:
- First-time buyer: £0
- Other buyers: £1,500
£300,000 property:
- First-time buyer: £0
- Other buyers: £4,600
£500,000 property:
- First-time buyer: £4,823
- Other buyers: £15,000
When we bought our current house, our stamp duty was £7,500. It’s a huge chunk of money that you need to have saved on top of your deposit!
Important: Stamp duty must be paid within 14 days of completion and will usually be handled by your solicitor.
Check the government’s website for updated stamp duty relief information, or use a stamp duty calculator to work out your exact costs.
Mortgage Adviser/Broker Fees
You need a mortgage adviser and broker to advise you on your affordability, find you the best mortgage offers and increase your chances of your mortgage being accepted.
Cost: £0-£500+ depending on the broker
Some brokers do not charge any fee and take a commission from the lender instead. Others charge a fixed fee or hourly rate. But they are worth it as they can save you thousands on mortgage deals.
As a first-time buyer, expect to pay around £500 if you’re using a paid broker. However, many excellent brokers work on a commission-only basis, so it’s worth shopping around.
Mortgage Fees: The Hidden Costs
This is where things get expensive! There are several mortgage-related fees you need to budget for:
Mortgage Booking/Arrangement Fee
Cost: £0-£2,000+ (varies by lender)
This can often be added to your mortgage, but then you have to pay interest on it over the entire mortgage term. It’s better to pay upfront if you can afford it.
Mortgage Account Fee
Cost: £100-£300
This is the cost of setting up and closing your mortgage account.
Mortgage Transfer Fee
Cost: Around £50
This covers the cost of transferring the money to the seller’s solicitor.
Valuation Fee
Cost: £150-£800
When you buy a house, it needs a valuation to check that it is worth the amount you’re paying for it before the mortgage can go ahead.
Important: This is NOT a full structural survey – it won’t identify repairs or maintenance needed. Sometimes lenders pay for this, but often you’ll need to budget for it.
Higher Lending Charge
Cost: Varies (if applicable)
Some banks charge this when the loan is much higher than the deposit. The money is either to protect them from any losses if you can’t pay your mortgage or for them to buy a Mortgage Indemnity Guarantee.
Total mortgage fees can range from £300 to £3,150+
Conveyancing and Solicitor Fees
Conveyancing fees cover the amount you must pay to make sure the legal transfer of a house sale is handled correctly. You will have to pay to use a conveyancing solicitor for this.
Legal Fees (2025)
Cost: £500-£1,150 on average
This is what the conveyancer or solicitor charges for doing the work. The cost depends on:
- The value of your property
- Whether it’s freehold or leasehold (leasehold costs around £300 more)
- Your location
Disbursements
Cost: £250-£700+
These include:
- Local searches: £250-£450 (to flag up any local issues)
- Land Registry fees: £200-£300 (registering change of ownership)
- Other searches: Environmental, drainage, etc.
Total conveyancing costs: £800-£2,000+
Top tip: Get quotes from multiple conveyancers to save money. You could save up to 70% by comparing quotes!
If you’re selling a house in order to buy a new house, you’ll have conveyancing fees to pay for your sale too.
Survey Costs: Essential or Optional?
It’s well worth getting a professional survey of the state of your building’s construction and condition before you buy it. Surveys can prove expensive but can give you reassurance that your future home is in good condition.
If you get a bad survey report, you can use that information to renegotiate on price, potentially saving thousands!
Types of Surveys and Costs (2025)
RICS Level 1 Home Survey (Basic)
- Cost: £300-£950
- Suitable for: Modern, conventional properties in good condition
- Covers visible defects and condition ratings
RICS Home Survey Level 2 (Homebuyer Report)
- Cost: £400-£1,000
- Suitable for: Most properties, especially those under 50 years old
- Covers condition of property with advice on issues and maintenance
RICS Level 3 Building Survey (Full Structural)
- Cost: £600-£1,500+
- Suitable for: Older properties, unusual homes, renovation projects
- Provides in-depth analysis of property condition
My recommendation: Don’t skip the survey! It’s a small price to pay compared to discovering major issues after you’ve moved in.
Insurance Costs
Buildings Insurance
Cost: £100-£250+ per year (varies by property value and location)
You must take out buildings insurance before banks will lend you money. This covers the cost of your home in the event of an accident, fire or any other way it might get destroyed.
Important: You need buildings insurance from the day you exchange contracts, not just from when you move in!
Contents Insurance
Cost: £100-£200+ per year
Contents insurance is optional but highly recommended to protect your belongings. It covers furniture, electronics, clothes, and other possessions.
Many insurers offer combined buildings and contents insurance which can save you money.
Moving Costs: Don’t Underestimate These!
Cost: £10-£1,500+ depending on your choices
This can vary massively depending on:
- How much stuff you have
- How far you’re moving
- Whether you do it yourself or hire professionals
DIY Moving
- Van hire: £10-£100 per hour or day
- Fuel: Variable
- Packing materials: £50-£100
- Food/takeaways: £20-£50 (you won’t have time to cook!)
DIY moving total: £100-£300
Professional Movers
- Full service (packing, moving, unpacking): £800-£1,500+
- Moving only: £300-£800
- Man and van: £250-£500
My tip: Get quotes from multiple removal companies. Prices vary dramatically!
Post-Completion Costs: The Ongoing Expenses
Mail Redirection
Cost: £33.99-£91.99
Royal Mail can redirect your post for 3-12 months while you update your address everywhere. This prevents missing important documents.
Council Tax
You’ll need to start paying council tax as soon as you move in. Costs vary by:
- Location (postcode)
- Property valuation band
- Local authority rates
Average: £1,400-£2,500 per year depending on band and area
Utilities Setup
Budget for:
- Setting up new accounts
- Potential connection fees
- First month’s bills
Parking Permits (if applicable)
Cost: Variable, often £50-£150+ per year
If your property doesn’t have parking, you may need a residential parking permit.
New Furniture and Decorating Costs
Furniture
You may need new furniture if you move into a bigger house or you’ve been renting a furnished property or living with family.
Budget: £500-£5,000+ depending on what you need
Essential items might include:
- Bed and mattress: £300-£1,500
- Sofa: £400-£2,000+
- Dining table and chairs: £200-£1,000
- Wardrobes: £100-£800
- White goods (washing machine, fridge, etc.): £1,000-£2,500
We had to buy a dining table when we moved, as we didn’t have the space for one in the old house. We also bought some sideboards and a new sofa, but these weren’t essential.
Decorating and Home Improvements
Budget: £500-£10,000+ (highly variable!)
It’s natural to want to put your own mark on your house, so decorating, adding home furnishings and upgrading bathrooms and kitchens all come with a cost.
Basic decorating might include:
- Paint and supplies: £200-£500
- Flooring: £500-£3,000+
- Curtains/blinds: £100-£800
- Light fixtures: £50-£300
My advice: Prioritise what needs doing immediately vs. what can wait. You don’t need to do everything at once!
Complete Cost Breakdown: How Much Does Buying a House Really Cost?
Let’s put this all together with a real example for a £300,000 property in 2025:
Upfront Costs BEFORE Moving In
| Cost Item | Amount |
|---|---|
| Deposit (10%) | £30,000 |
| Stamp Duty | £4,600 (£0 for first-time buyers!) |
| Conveyancing Fees | £500-£1,150 |
| Disbursements | £250-£700 |
| Survey | £400-£1,000 |
| Mortgage Broker | £0-£500 |
| Mortgage Fees | £300-£2,000 |
| Buildings Insurance | £100-£250 |
| TOTAL UPFRONT | £36,050-£40,200 |
Moving Day Costs
| Cost Item | Amount |
|---|---|
| Removals | £300-£1,500 |
| Mail Redirection | £34-£92 |
| Takeaways/food | £20-£50 |
| TOTAL MOVING | £354-£1,642 |
Post-Move Costs (First Year)
| Cost Item | Amount |
|---|---|
| Contents Insurance | £100-£200 |
| Decorating/Furniture | £1,000-£5,000+ |
| Council Tax | £1,400-£2,500 |
| Utilities (first year) | £1,800-£2,400 |
| TOTAL FIRST YEAR | £4,300-£10,100+ |
GRAND TOTAL: £40,704-£51,942
And remember, this is on top of your ongoing monthly mortgage payments!
For the average UK house price of £292,000, you’re looking at around £37,486-£49,000 in total costs.
How to Save Money on the Cost of Buying a House
1. Be a First-Time Buyer
First-time buyers save thousands on stamp duty! On a £300k property, that’s a £4,600 saving.
2. Save a Bigger Deposit
The bigger your deposit, the better your mortgage rate. Even increasing from 5% to 10% can save you thousands in interest over the mortgage term.
3. Compare Conveyancing Quotes
Don’t just use the first solicitor you find. Compare quotes from multiple conveyancers to save up to 70%.
4. Use a Fee-Free Mortgage Broker
Many excellent brokers work on commission only, so you don’t pay anything.
5. Consider DIY Moving
Hiring a van and doing it yourself can save £500-£1,000 compared to professional movers.
6. Shop Around for Insurance
Compare buildings and contents insurance quotes. Combined policies are often cheaper.
7. Don’t Over-Survey
If you’re buying a modern property in good condition, you probably don’t need the most expensive survey.
8. Negotiate Mortgage Fees
Some lenders will reduce or waive certain fees, especially if you’re bringing a large deposit.
9. Time Your Purchase
If possible, try to exchange during periods of stamp duty relief (though these are unpredictable!).
10. Use Help to Buy Schemes
Look into schemes like:
- Lifetime ISA (25% government bonus)
- Shared Ownership
- First Homes scheme
- Help to Buy equity loan (if still available)
How Much Does Buying a House Cost? Final Thoughts
So after writing this blog post and updating it for 2025, I can now see how incredibly naive I was for thinking I could buy a house with just £10,000!
The reality of how much buying a house costs is shocking:
- You need a deposit (typically 5-10% of the property price)
- You need stamp duty (unless you’re a first-time buyer under £300k)
- You need thousands for legal fees, surveys, and mortgage costs
- You need money for moving and immediate post-move expenses
- You need a buffer for unexpected costs
For a £300,000 property, you’re realistically looking at needing £40,000-£52,000 total when you factor in everything.
That’s why so many people find buying a house so difficult, especially first-time buyers. It’s not just about saving for the deposit – it’s about saving for all these additional costs too!
My Advice for Aspiring Homeowners
- Start saving early – the more you have, the better rates you’ll get
- Use a Lifetime ISA – free money towards your deposit!
- Budget for 15% of the property value – for all additional costs
- Don’t rush – take time to compare quotes and find the best deals
- Keep an emergency fund – things WILL come up after you move in
- Be realistic – you might need to start smaller than your dream home
The property ladder is harder to get on than ever before, but understanding exactly how much buying a house costs is the first step to making it happen.
Did you know about all the costs associated with getting a mortgage? What surprised you most about how much buying a house costs?
Useful Resources:
Compare My Move – Cost Calculator
Government Stamp Duty Calculator
Related posts:
OMG, yes. Inflation is just crazy. Thanks for sharing this breakdown. This will really be helpful for those scouting.
This is a fantastic and informative post about the true cost of buying a house. It’s refreshing to see someone break down the expenses beyond just the mortgage payment and closing costs. Your thorough analysis of the other expenses involved in the home-buying process will help readers to better prepare for the financial commitment of homeownership. Especially with husband and I being property owners we know how expensive it can be all too well. Thank you for sharing your knowledge and insights!
theblogsocial.com
There are so many hidden costs to buying a house! Paying for our mortgage advisor was so worth it so I’m glad we did that and we were lucky that we moved during the stamp duty holiday!
Amy x
This is so scary, but I still can’t wait to buy a house! But it’s crazy how much home prices have increased in the past years/decade…
Love,
Krissi of the marquise diamond
https://www.themarquisediamond.de/
Thank you for providing the break up. It’s becoming very difficult to buy a home these days. Though gov is providing some relief in stamp duty if the property is owned by a woman but that’s not enough. However, some steps need to be taken to reduce the cost of raw material.
Sounds like buying a house in UK is quite costly. But everyone should have this dream. Thank you for sharing.
That’s interesting, I’ve never bought a house before but this will be very handy in the future. Thank you for sharing!
Hiring a mortgage advisor was the best thing we did. An extra expense, but something I’m so glad we did. We were incredibly lucky when we bought the house were in now, there was one week left of no stamp duty. It’s so stupid. I can’t believe it’s so expensive. It’s insane that the govt just switched it off for a bit – Makes you wonder what it’s actually for.
It blew my mind that I needed house insurance from the day I exchanged contracts rather than the day I actually owned the house, wild. And the other hidden costs I was just not prepared for. Really helpful post!
Thank you for sharing! I remember from when I used to live in York, it can be quite an expensive city. I love that you’ve shared some key info and advice here, I’m very naive about the whole process so this is very helpful 🙂
I think a lot of first-time buyers don’t realise the true costs of moving house, there are so many different costs in this process which don’t include the deposit! x
Lucy | http://www.lucymary.co.uk
You’ve just reminded me we need to renew our House insurance!! x
I know this post is going to help soo many people trying to get on the ladder
Rosie