The must-know costs of buying your first UK home

With all this housing crisis going on, the question of ‘What are the costs involved in buying a house?’ is heard more and more often. This article is for expats who plan to purchase property in the UK for the first time. Read on to learn the cost of buying a home, the costs of owning a home and the first-time buyer relief you may get.

First-time buyers

The costs of buying a house in the UK may be lower for so-called ‘first-time buyers’. These are people who have never owned a residential property before and are now buying their first house.

• If you had a property outside of the UK, you’re not eligible.
• Another detail: if you’ve ever inherited a house, you may not be considered a first-time buyer.

The ideal candidate is someone who has never owned property.

About to get your own place? Then let’s break down the key costs of buying a house in the UK. From deposits and mortgage fees to hidden costs like surveys and moving expenses, here’s everything expats need to budget for.

The average cost of buying a house in the UK

Property prices are rising: according to official government data, they have increased by 0.2% since December 2024. Considering this, purchasing a house now rather than later doesn’t sound like a bad idea. We never know what will happen with the housing market, but at least you’ll have a roof over your head.

Let’s get back to the real numbers — how much does it cost to buy a house in the UK? In 2025, the average cost of buying a house in the UK is £269,000. Whether it’s expensive or not, everyone decides for themselves. Most people can’t boast of such an amount. Luckily, there are ways to reduce financial burdens and avoid paying the whole cost of buying a house in the UK in one go.

Deposit

Deposit is one of the biggest upfront costs of buying a house. The typical amount is from 5 to 20% paid in advance. It can take years to save, so start early. Begin by reading this article about boosting your financial planning with AI prompts.

Deposit example: For a £250,000 home, a 10% deposit means saving £25,000 in advance. With the average weekly earnings being £677 (regular pay), saving enough funds is not easy.

A deposit is not an extra charge you pay; it’s subtracted from the final cost of buying a home. The higher the deposit, the less you’ll need to borrow and pay in the future. You'll likely get the most competitive mortgage deals if you pay more than 40% as your deposit.

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Mortgage costs

A mortgage is a house loan divided into monthly payments. Nothing in this world is free, so you’ll be obliged to pay an interest rate (starting from 4%) and some fees.

Production fee

The fee you pay for setting up the mortgage. Basically, you’re paying lenders for their service.

Range: £0 to £2,000, with many around £1,000.

It can be counted as one of the upfront costs of buying a house or included in the mortgage term (then, interest is applied).

Booking fee

Sometimes it’s merged with the production fee, sometimes it’s paid separately. The name is self-explanatory as this is a fee for booking a mortgage and setting up the application.

Range: £100 to £250.

These tiny fees add up to a huge cost of buying a home in the UK, so don’t overlook them.

Home valuation fee

The value of your home will be double-checked by the mortgage provider. They’ll evaluate the condition, location, size, supply, demand and other factors. Based on the assessment, you’ll get an estimated property value to decide how big the loan should be.

Range: £250 to £1,500

It’s one of the must-have upfront costs of buying a house, even if you don’t plan to apply for a mortgage.

Broker fee

Not an obligatory cost of buying a home since you may refuse the broker's services.

Range: around £500

The broker compares mortgages, explains legal pitfalls, assesses your finances, deals with the application and much more. If you’re applying for a mortgage for the first time and have no idea what to expect, paying for broker services will make the process less stressful.

Early repayment charges

Repaying the loan means losing less on mortgage rates. However, some lenders don’t want you to ‘cheat’ (even though it’s not cheating) and charge for early repayments. Always check the fine print.

This is it for the mortgage costs of buying a house in the UK. What are the expenses when buying a house if we sum up all the fees? Check the total:

Total: up to £4,250 of fees + monthly interest payments.

May be interesting: Best UK accounts for kids and teens.

Stamp Duty Land Tax (SDLT)

SDLT is a mandatory cost of buying a home. However, first-buyers can get a relief until a certain threshold.

First-buyer’s SDLT rates:

• Up to £300,000 = 0%
• From £300,001 to £500,000 = 5%

How to calculate the SDLT cost of buying a house in the UK? Assuming the house price is £450,000. Then:

• No tax on the first £300,000 = £0
• 5% on the remaining £150,000 = £7,500 — it’s your total SDLT.

If the property price is over £500,000, you pay the standard SDLT. In this case, the rates are:

Find out more about SLDT and the costs of buying a house in the UK here.

Conveyancer fees

If you thought that we’re done with the fees, no. The upfront costs of buying a house are full of them.

A conveyancer is a person or company who does some paperwork and conducts research for you. Their services include:

• fraud check;
• local authority searches;
• transferring ownerships;
• bankruptcy search and more.

Range: You may expect to pay up to £3,000 for all the services, but it varies.

Surveys and inspections

It’s not about the ‘Rate this product from 1 to 5 stars’ surveys. The ones included in the costs of buying a house in the UK are aimed at preventing any legal disputes about the property. The survey results will show where exactly your land boundaries are and what the topographic condition of the location is.

Range: The price will change based on the survey type and the amount of details included. On average, charges are between £300 and £1,500.

If you want to save money, these surveys are not compulsory. But it may cost you more in the long term if you accidentally start to build a garage on the neighbour’s territory.

Insurance

Insurance is the cost of buying a home, and you'll need it 100% when applying for a mortgage. There are several types of insurance:

Buildings insurance

• Protects the property’s structure against damage (fire, floods, etc.).
• Range: £150–£300 annually.

Contents insurance

• Covers your belongings against theft, fire, or water damage.
• Range: £100–£250 annually.

Life and income protection insurance (optional)

Ensures your mortgage is covered if you pass away or lose your income. Range: Varies based on age, health, and cover.

Include it in your list of bills to consider when buying a house.

As for the upfront costs of owning a home, that’s it. You may face some additional charges, but what we listed is the key expenses you must consider in your budget plan.

So, how much does it cost to buy a house in the UK? If you’re a first-time buyer purchasing £250,000, with all the prior expenses and monthly mortgage payments, the real cost will be around £400,000–£500,000 on average.

Costs of owning a home

The happiest moment of one’s life is getting the keys to their own house. The joy of moving in and finding a place to call ‘home’ is long-lasting, but new expenses are ready to eat a part of your money. Here are the bills to consider when buying a house:

• Utility bills. Read how you can save on them here.
• Council tax.
• Service charges.
• Maintenance fee.
• Mortgage repayments.
• Ground rent.
• Parking charges and more.

These are the costs of owning a home you’ll deal with on a regular basis. And don’t forget about the furniture and renovation expenses — make your place pretty.

Explore: How to set up and pay your household bills in the UK.

FAQ — Costs of buying a house in the UK

How much does it cost to buy a house in the UK?

In 2025, the average price of a house in the UK is £269,000.

What are the costs involved in buying a house?

The answer to the question, ‘What are the expenses when buying a house?’ will vary based on many factors. Usually, deposit, mortgage costs, Stamp Duty Land Tax, surveys and insurance are included.

What are bills to consider when buying a house?

Taxes, utilities, repair, insurance, maintenance and service charges.

Is $10,000 enough for a house deposit in the UK?

The deposit amount is based on the property price. Be ready to pay 5-20%, the more the better.

Can a 47-year-old get a 25-year mortgage?

You can try, but the older a person is, the more strict the ending criteria are.

How can I send money from the UK?

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