First-Time Buyers: Unpacking the Costs with Confidence

Buying your first home is one of the most exciting milestones in life! It can also feel overwhelming, especially when it comes to understanding the true cost of buying a house in the UK.

As a first-time buyer, you want to budget realistically and avoid any nasty surprises along the way. In this article, our team break down the first-time buyer costs, highlight the house buying fees you may encounter, and shine a light on the sneaky hidden costs that buying a house often brings. By the end, you’ll feel more confident and prepared for your home buying journey.

Stamp Duty: What First-Time Buyers Need to Know

Stamp duty is one of the biggest costs you’ll face, but the good news is there are special rules for first-time buyers. Known officially as Stamp Duty Land Tax (SDLT), this is a government tax on property purchases.

As of 2025, first-time buyers in England and Northern Ireland don’t pay stamp duty on properties up to £300,000 if buying a residential property worth £500,000 or less. This means you’ll only pay stamp duty on the portion above that amount, I.e. between £300,001 – £500,000.

It’s essential to factor stamp duty first time buyer rules into your budget early on. If you’re buying in Scotland or Wales, be aware that different systems (Land and Buildings Transaction Tax in Scotland and Land Transaction Tax in Wales) apply, with their own thresholds and rules.

Solicitor Fees: The Legal Essentials

When purchasing property, you’ll need a solicitor or conveyancer to handle the legal side of your house purchase. This includes everything from checking contracts to dealing with the Land Registry and transferring funds. The amount you’ll pay in solicitor fees vary depending on the complexity of your purchase.

These fees often include searches (local authority, environmental, water/drainage) to ensure there are no nasty surprises attached to your new property. Always check what’s included in your quote so you can compare like-for-like and avoid unexpected add-ons.

Surveys: Protecting Your Investment

A survey isn’t a legal requirement, but it’s highly recommended. There are different levels of surveys, from a basic valuation (often required by your mortgage lender) to a full structural survey.

Surveys are worthwhile because they can uncover issues like damp, structural problems, or roof repairs, helping you avoid costly surprises after you move in. Remember, investing in a good survey can save you money and stress in the long run!

Insurance: Safeguarding Your New Home

Before you complete on your purchase, you’ll need to arrange buildings insurance. Most mortgage lenders require this as a condition of your loan, as it protects the structure of your home against damage from events like fire or flooding. Costs vary depending on the property, location, and level of cover.

You may also want to consider contents insurance to protect your belongings, as well as life insurance or income protection to cover your mortgage if your circumstances change.

Ongoing Costs: Budgeting for Life After Moving In

The cost of buying a house in England doesn’t end when you get the keys. Ongoing costs like maintenance, council tax, and utilities are all part of homeownership. Here are some costs to be aware of long-term:

• Maintenance: From boiler servicing to roof repairs, it’s wise to set aside a small fund for unexpected repairs. Budget at least 1% of your property’s value per year for maintenance.
• Council Tax: This varies by local authority and property band. Speak to the local council or check online for accurate council tax payments, and remember that some reliefs apply. For example, a percentage reduction for single occupancy.
• Utilities: Gas, electricity, water, and broadband are ongoing monthly expenses that may increase year on year. Shop around for the best deals.
• Ground Rent/Service Charges: If you’re buying a leasehold property, you may have to pay annual ground rent or service charges for communal areas.

Hidden Costs: Don’t Get Caught Out!

There are a few extra house buying fees that can catch first-time buyers off guard:

• Removal costs: Hiring a professional removal company is an additional cost that varies depending on distance and volume.
• Mortgage arrangement fees: Some lenders charge an arrangement fee, but this can be added on to your overall loan amount.
• Redecoration/furnishing: Budget for new furniture, paint, or appliances.

Tips for Managing Cash Flow

To make your home buying journey smoother, here are some practical tips for managing your finances:

• Create a detailed budget: List all expected costs, including fees, surveys, and moving expenses.
• Build an emergency fund: Aim for at least 3–6 months’ living expenses set aside for unexpected costs.
• Shop around: Compare quotes for solicitors, surveys, insurance, and utilities to get the best value.
• Plan for ongoing expenses: Factor in council tax, maintenance, and utilities into your monthly budget.
• Negotiate where possible: Some fees, like solicitor costs or mortgage arrangement fees, may be negotiable.

The Expertise Of A Mortgage Broker

Buying your first home is a huge achievement, but being prepared for all the first time buyer costs UK will help you feel more confident and in control. Take the time to understand each expense, plan for the future, and seek advice if you’re unsure. With the right preparation, you’ll be able to enjoy your new home, and your financial peace of mind, for years to come.

Thinking about your first move? What’s your biggest worry about home buying costs?