last updated October 3rd, 2025
Purchasing a home in the UK is seen as a major milestone and a worthwhile long term investment. The upfront costs of a deposit and mortgage repayments are well understood but there are many other forgotten or hidden expenses that often catch buyers off guard. These costs can significantly affect your budget making it essential to plan ahead and account for them. Not all will apply to every situation but most buyers will have some additional costs.
The costs can be separated into the up front costs directly involved in buying a home and costs after buying such as repairs and maintenance. Some costs happen immediately after buying such as council tax while others such as maintenance may be managed over the short term if there are no urgent problems.
Stamp Duty is a tax imposed on property purchases above a certain threshold. The rates vary based on the property's value and whether you're a first-time buyer or purchasing an additional property. The thresholds and rates frequently change, so it is crucial to check the latest regulations. First-time buyers benefit from certain exemptions and discounts which can help reduce overall costs. Second homes usually are charged at a higher rate than your primary home.
Engaging a solicitor or licensed conveyancer is essential to handle the legal aspects of your purchase. Legal fees typically depend on the complexity of the transaction (as they take extra time to manage) and property value. These costs often include local searches to uncover potential issues such as nearby planning permissions, restrictions or environmental concerns. Without these searches buyers risk facing unexpected problems post-purchase, which could result in costly legal disputes so never cut costs on 'legal' searches. They may also charge for registering your mortgage at the Land Registry and some will charge extra if you ask them to Exchange (initial entering into contract to buy house) and Complete (completion of contract) within 2 weeks. If there any ongoing property disputes investigate at an early stage to assess potential costs - read about this in detail at Buying a home - are you buying a property dispute?
You will carry out your survey as described in the Free PDF Printable House Viewing Checklist Survey and based upon your results, you may then proceed with further investigations. A professional property survey such as the ones listed at What are the different types of house buyers survey? assesses the condition of the home you intend to purchase. Options range from basic valuations to comprehensive building surveys. A thorough survey can save you money in the long run by highlighting costly repairs before you commit. For older properties or those with visible issues investing in a detailed structural survey can be invaluable providing peace of mind and negotiating power.
If you are buying a leasehold property and it has a short lease, you can ask the seller to extend the lease. (Some leaseholders like Charitable Housing Trusts do not have to extend). Outside Scotland which has alterantive procedures, the seller must have owned the property for at least 2 years and using a Section 42 Notice, makes a request for a lease extension and a financial offer ('Premium') to the leaseholder for allowing it. The Premium is set using a Valuer usually and a Solicitor is involved. The leaseholder cannot refuse the extension but can ask for more money so sometimes there is negotiation. As an unforseen cost, it takes up time and money and you should always check this out at an early stage in house viewing as the seller may want you to pay the fees. You must also clarify who is responsible for paying buildings insurance.
If you are buying into a Shared-Ownership property, you must consider not just the legal fees to buy the share but future charges when you buy more shares. The legal rules are different throughout the UK so always get expert legal advise before committing. Always get a detailed list of fees and responsibilities from the seller and third party (Housing association for example) and beware that even if you are buying 25% of a property, you may have to pay 100% of all legal fees.
Mortgage providers may charge arrangement fees to find a mortgage for you and/or they earn fees from the lender that offers the mortgage. Some lenders allow you to add this fee to your mortgage but this increases the overall interest paid over time. It's essential to weigh the upfront savings against the long-term costs of 'rolling' fees into a mortgage.
Mortgage lenders often require a valuation to ensure the property's worth is in or around the buyers offer price. While some lenders offer free valuations others charge fees. This valuation mainly serves the lender's interests as they want to ensure that the property is worth more than the mortgage.
Lenders typically require you to have buildings insurance in place before completing your purchase. Additionally you may consider contents insurance and life insurance which add to the ongoing costs of home ownership. We have more details at Insurance - protecting your home. These insurances protect your investment and provide financial security in case of unforeseen events such as property damage or loss of income.
Moving costs vary significantly based on distance and the volume of belongings. Professional removal services can be expensive but they take care of everything. An alternative is to rent a van which is a cheaper but labour-intensive option. When hiring professional movers consider additional costs for packing services or storage during the move and any charges if you cancel at short notice as property 'completion' when you finally get the keys is often delayed.
If there's a gap between selling your old property and moving into the new one you may need to store your belongings and extend your stay in your existing home. Storage units are usually available on a short-term basis depending on size and location required. Planning ahead to minimise storage time can help reduce these expenses. If you intend to renovate your new home it can be easier to keep most belongings in storage initially.
Even newer homes often require some level of renovation or repair. Whether it's painting walls, replacing carpets or addressing basic structural issues these costs can quickly add up. Setting aside a contingency fund of 1-3% of the property's value is advisable. Unexpected repairs such as plumbing or electrical issues can arise after the purchase so it's important to budget for these scenarios. (see House Viewing Repairs Checklist - What to look out for)
Buying furniture and appliances can be a significant expense especially if you're moving from a rented property that came furnished. Basic furnishing costs are relatively cheap. Consider prioritising essential items and gradually building up your collection to spread out the costs.
Setting up or transferring utilities like gas, electricity and internet may involve connection fees or deposits particularly if you're moving into a newly built property. Researching and choosing the best utility providers can save money and ensure reliable service.
If the previous owners had pet cats or dogs you may well have fleas throughout the house - get pest control in as soon as possible as they will settle in new furniture and carpets.
Council Tax varies by property value (as the tax bands were set years ago, they vary a lot) and location and differs widely across the country. Discounts may apply for single occupants or certain circumstances but it's an unavoidable ongoing cost. Ensuring accurate council tax banding can help avoid overpayments - this information is available from the seller pre-purchase.
If the home is on an estate, you may have to pay service charges for cleaning the roads and maintaining the area.
Regular maintenance is essential to keep your home in good condition. This includes everything from gutter cleaning to boiler servicing. Neglecting routine maintenance can lead to more significant expensive repairs over time.
If you purchase a leasehold property you may be responsible for ground rent. Understanding the terms of the lease and potential increases in fees is vital to avoid financial strain.
This optional insurance can cover your mortgage payments if you lose your income due to illness or redundancy. Premiums depend on coverage and personal circumstances. While not mandatory it offers valuable peace of mind.
Create a detailed budget that includes all potential expenses. Reviewing and updating your budget regularly ensures you remain financially prepared.
Where possible negotiate fees with solicitors, surveyors and removal companies. It's also worth negotiating the property price to offset some of the hidden costs. Sellers may be willing to lower the price if surveys reveal significant issues.
First-time buyers and low-income households may benefit from government schemes or shared ownership. These can reduce upfront costs and make home ownership more accessible. Researching eligibility and understanding the terms of these schemes is essential for maximizing their benefits. Shared ownership can also be expensive when selling the property as you may be responsible for the costs incurred by the housing association also.
The hidden costs of buying a house can be substantial but with careful planning and research they are manageable. By understanding these expenses and building them into your budget, you will be better prepared for the financial responsibilities of home ownership. This planning not only helps prevent financial strain and worry but also ensures a smoother move into your new home.
