What are the average fees for buying a house?

Key takeaways

• Average fees for buying a house. These typically range from £1,500 to £8,000+, excluding the deposit
• Different levels of property surveys impact cost and assessment type. Property surveys can cost between £300 and £1,500+, depending on the survey type
• Stamp Duty costs and first time buyer relief. Stamp Duty costs can vary depending on the property's value, location and buyer status
• Conveyancing, property searches and Land Registry registration. These are all mandatory parts of the legal process
• Removal costs are optional. If you decide to use a removals service, make sure to include these costs within your overall budget

Average costs of buying a house

When preparing your finances for buying a house, your budget plays an important role. That’s why it can be helpful to understand the costs you might be expected to pay. In the table below we run through the average fees when buying a home.

What costs do you need to pay before completing a house purchase?

From submitting your mortgage offer to completion day, different home buying costs occur at different stages. Before completing your house purchase, you will usually need to pay the following:

• Mortgage application and broker fees
• Property valuation fees
• House survey costs
• Property search fees
• Conveyancing fees
• Stamp Duty, which varies depending on property price and whether you are a first time buyer or purchasing an additional home
• Land Registry fees
• Removal expenses if you decide to hire help
• Exchange deposit, which is usually a percentage of the purchase price. This is paid upon exchanging contracts

There are also several essential house purchase documents that you will need ahead of completion. Make sure to have documents such as ID and proof of address, proof of deposit funds and mortgage documentation to hand.

Mortgage fees

Mortgage costs are among the first expenses buyers encounter. The amount you pay will depend on the lender, mortgage product and whether you choose to use a broker. Understanding the mortgage process can help you compare offers more effectively in order to get the right mortgage.

Mortgage arrangement fee

A mortgage arrangement fee is charged by some lenders. It often ranges from £0 to £2,000+. Lenders may allow the fee to be added onto your mortgage balance, but this can increase the total amount of interest you pay.

Mortgage booking fee

A mortgage booking fee, also known as a reservation fee or application fee, helps secure a specific mortgage product. They usually range from £0 to £300, but not all lenders charge this fee. It may be non-refundable if the mortgage application does not proceed – check with your lender for specific terms.

Mortgage broker fees

Many buyers use mortgage brokers to help compare lenders and products. A broker can help buyers understand complex products, assess affordability requirements and identify mortgage options that suit their circumstances.

What is the average broker fee for buying a house?

Fees will often range between £0 and £500+, although some providers may charge more. Some brokers are fee-free because they receive commission from mortgage lenders when a mortgage completes. Others charge clients directly in addition to any lender commission.

Survey and property assessment costs

Property valuations and surveys are sometimes confused, but each serve different purposes.

• A valuation is primarily for the lender's benefit and confirms whether the property provides suitable security for your mortgage.
• A survey provides a detailed assessment of the property's condition. This can flag any potential issues before you commit to the purchase.

Property valuation fee

A mortgage valuation is usually arranged by the lender as part of the mortgage application process. Costs can range from £0 to £500, with some lenders offering free valuations with certain mortgage products.

The valuation focuses on the property's market value rather than identifying maintenance issues. A valuation is not a substitute for a property survey.

Survey costs and survey types

There are a few types of property surveys you can opt for, each offering a different level of assessment. You will first want to make sure that your surveyor is a member of the two main accrediting bodies:

• RICS - Royal Institute of Chartered Surveyors
• RPSA - Residential Property Surveyors Association

This table outlines the types of survey you can opt for:

Legal fees and administration costs

The legal steps involved in buying a new home are an essential part of any property purchase. Solicitors and conveyancers manage the transfer of ownership, conduct searches and ensure the legal aspects of the transaction are completed correctly.

Conveyancing fees

Home buying solicitor fees are often one of the largest non-mortgage costs buyers encounter. The average solicitors fee for buying a house usually range from £700 to over £1,500, although costs may be higher for leasehold properties or more complex transactions.

These fees typically cover:

• Legal advice
• Reviewing contracts
• Liaising with mortgage lenders
• Managing funds
• Completing ownership transfer
• Registering the purchase

For more information, take a look at our guide on questions to ask a property solicitor.

Property searches

Property searches can help to identify issues that may affect the property or surrounding area. You can expect fees for property searches to range from around £250 to £500.

Property searches include:

• Local authority searches to identify planning, road and local development information
• Environmental searches to highlight flood risks, contamination concerns and other environmental factors
• Water and drainage searches to confirm connections to public services

Additional specialist searches may be required depending on the property type and location.

Land Registry fees

Once the purchase is complete, the new ownership details must be registered with HM Land Registry. Fees vary according to the property's value and whether applications are submitted digitally or by post. The registration process creates an official legal record of ownership and is a required part of the conveyancing process.

Stamp Duty and property taxes

Stamp Duty Land Tax (SDLT) applies to residential property purchases in England and Northern Ireland where relevant thresholds are exceeded. The amount payable depends on the property's value and the buyer's circumstances.

First time buyer Stamp Duty relief

First time buyers can benefit from lower Stamp Duty than those buying a property for the second time, or an additional home. Reliefs or reduced tax liabilities depend on current government thresholds and eligibility criteria. Rates and thresholds can change, so buyers should always refer to the latest guidance on GOV.UK.

Land Tax in Scotland and Wales

Different systems operate in Wales and Scotland but work in a similar way to Stamp Duty in England and Northern Ireland. Welsh buyers pay Land Transaction Tax (LTT), while Scottish buyers pay Land and Buildings Transaction Tax (LBTT).

Moving costs and other expenses

It's easy to overlook the additional expenses when budgeting for a house move. These can include:

• Removal company fees, typically £300 to £2,000+
• Van hire for self-managed moves
• Temporary storage costs
• Professional cleaning services
• Mail redirection services through Royal Mail
• Utility costs, including cancellation, setup and transfer
• New furniture and household items
• Broadband installation charges

Example house buying budget

You may be wondering what you can expect your budget to look like when buying a new home. To help, we have illustrated a few examples* below.

*Assumes eligibility for applicable first time buyer relief at the time of purchase. Excludes deposit payments.

How to budget for house buying costs

Saving for a house includes more than just the deposit. Careful planning can help buyers prepare for both expected and unexpected expenses. Many buyers find it useful to keep a separate savings fund specifically for house buying costs rather than focusing solely on the deposit. This can provide greater flexibility if additional expenses arise during the process.

We can recommend a few simple tips on budgeting for your next home:

1. Calculate your deposit alongside all associated buying costs
2. Research mortgage fees before applying for a loan
3. Obtain quotes from several conveyancers and surveyors to compare costs
4. Set aside a contingency fund for unexpected expenses
5. Factor in moving and utility setup costs
6. Consider Stamp Duty costs early in the planning process
7. Review all lender charges before accepting a mortgage offer

Explore our range of new developments to see what’s available with Barratt Homes.

Disclaimer:

This article is for general informational purposes only and does not constitute mortgage advice. We would always recommend that advice is taken from a regulated mortgage adviser regarding your specific circumstances.