When you're planning to buy a house in the UK, it's easy to focus on the big numbers: the deposit, the mortgage repayments, and maybe stamp duty. But the truth is, there are plenty of extra costs involved — and if you're not prepared for them, they can quickly add up.
To help you avoid any unexpected surprises, here’s a breakdown of the true hidden costs of buying a home in the UK, and how to budget for them realistically.
1. Deposit
Typical cost: 5–20% of the purchase price
This isn’t a hidden cost, but it’s the largest upfront expense. Most lenders require at least a 5% deposit, though putting down 10–20% often unlocks better mortgage rates.
Tip: Aim for a 10% or higher deposit if you can, as it will reduce your monthly repayments and give you access to better mortgage deals.
2. Mortgage Arrangement Fees
Typical cost: £0–£2,000
Some mortgage products come with arrangement or product fees. You can either pay them upfront or add them to your mortgage balance, though adding them means paying interest on them over time.
Tip: Always compare deals with and without fees, as sometimes a mortgage with a fee offers a lower rate that works out cheaper overall.
3. Valuation and Survey Fees
Typical cost:
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Basic valuation: £250–£500
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Homebuyer’s report: £400–£700
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Full structural survey: £600–£1,500+
Your lender will typically require a basic valuation, but this only confirms the property's value for mortgage purposes. It won’t highlight structural problems or maintenance issues. For peace of mind, most buyers opt for a Homebuyer’s Report or a full structural survey.
Tip: Older properties or homes with visible issues are worth the extra survey cost. It could save you thousands in unexpected repairs later.
4. Conveyancing (Legal Fees)
Typical cost: £800–£1,800 (including disbursements)
You’ll need a solicitor or licensed conveyancer to handle the legal side of your purchase. This includes property searches, contracts, and liaising with the seller’s legal team.
Tip: Request a fixed-fee quote upfront, making sure it includes VAT and disbursements like Land Registry fees and local authority searches.
5. Stamp Duty Land Tax (SDLT)
Typical cost: 0–5%+ of the property price
Stamp Duty applies to most home purchases over £250,000 (as of 2025 rates). First-time buyers may benefit from a relief scheme on homes costing up to £425,000.
Tip: Use an online Stamp Duty calculator before you make an offer, so you know exactly what to budget for.
6. Removal Costs
Typical cost: £300–£1,500+
Whether you rent a van or hire a professional removal service, moving home comes with costs. Prices vary based on distance, how much you’re moving, and whether you need packing services.
Tip: Moving mid-week or outside school holidays often costs less.
7. Buildings Insurance
Typical cost: £150–£400 per year
You’ll need buildings insurance in place from the day you exchange contracts, not just when you move in. It’s a condition of most mortgage offers.
8. Life and Income Protection Insurance
Typical cost: £10–£50+ per month
Many lenders recommend or require life insurance or mortgage protection cover. This ensures your mortgage would be repaid if something happened to you.
Tip: Get quotes early and factor the monthly cost into your mortgage affordability calculations.
9. Service Charges and Ground Rent (for Leasehold Properties)
Typical cost: £100–£2,000+ per year
If you’re buying a flat or a leasehold house, you may have to pay annual service charges for maintenance and communal areas, as well as ground rent.
Tip: Always check the lease carefully for these costs and whether they’re likely to increase.
10. Renovation and Immediate Repairs
Typical cost: £500–£5,000+
Even homes listed as "move-in ready" often come with unexpected costs — from replacing locks and painting to sorting minor plumbing or electrical issues.
Tip: Set aside a contingency fund for the first six months of ownership.
How to Budget for These Extra Costs
A good rule of thumb is to budget around 5–7% of your property price for additional costs on top of your deposit.
For example, on a £300,000 house:
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Deposit: £30,000 (10%)
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Additional costs: £15,000–£21,000
It’s wise to keep this fund in a separate savings account to avoid dipping into your deposit pot.
Summary of Hidden Costs
| Cost Type | Typical Range |
|---|---|
| Deposit | 5–20% of property price |
| Mortgage Fees | £0–£2,000 |
| Surveys | £250–£1,500+ |
| Legal Fees | £800–£1,800 |
| Stamp Duty | 0–5%+ |
| Removal Costs | £300–£1,500+ |
| Insurance (Buildings + Life) | £150–£450 per year / £10–£50 per month |
| Service Charges / Ground Rent | £100–£2,000+ per year |
| Immediate Repairs / Renovations | £500–£5,000+ |
Final Thought
While buying a home is one of life’s biggest milestones, it’s also one of the most expensive processes you’ll go through. Being aware of these hidden costs means you can budget properly, avoid nasty surprises, and move into your new home with confidence.