The True Cost of Buying Your First Home in 2026: Stamp Duty, Fees and Extras (Part 3)
Full breakdown of all costs when buying your first home in 2026: stamp duty (post-April 2025 FTB changes), survey, conveyancing, moving, insurance and reserves.
Part 3: The True Cost of Buying — Beyond the Deposit
Most first-time buyers focus entirely on the deposit and mortgage repayments. The costs in between — stamp duty, solicitor fees, surveys, searches, removals — are often treated as an afterthought. That's a mistake that causes genuine financial stress, and sometimes causes purchases to fall through because the buyer runs out of funds before completion.
This guide gives you every cost, with real numbers for two property price points: £275,000 and £450,000. By the end, you'll have a complete budget.
Stamp Duty Calculator
Calculate Stamp Duty Land Tax (SDLT) for your property purchase in England.
Stamp duty calculator — calculate your SDLT in under a minuteStamp Duty Land Tax (SDLT) in 2026: The FTB Rules
Stamp Duty Land Tax (SDLT) applies to property purchases in England and Northern Ireland. Wales has Land Transaction Tax (LTT) and Scotland has Land and Buildings Transaction Tax (LBTT) — covered briefly below.
The April 2025 revert — what changed
From September 2022 to 31 March 2025, an SDLT "holiday" extension raised the first-time buyer nil-rate threshold to £425,000. That ended on 1 April 2025, and the rates reverted to the pre-holiday FTB relief levels:
SDLT for first-time buyers in England (from 1 April 2025):
| Property value band | SDLT rate (FTB) | SDLT rate (non-FTB) |
|---|---|---|
| £0 – £300,000 | 0% | 0% on first £125k, 2% on £125k–£250k, 5% above |
| £300,001 – £500,000 | 5% | 5% |
| Above £500,000 | No FTB relief applies | Standard rates apply |
When a property costs more than £500,000, first-time buyer relief is lost entirely — you pay the same SDLT as any other buyer.
SDLT worked examples for first-time buyers
Example 1: £275,000 property
| Band | Calculation | SDLT |
|---|---|---|
| £0 – £275,000 (within nil-rate band) | £275,000 × 0% | £0 |
| Total SDLT | £0 |
A first-time buyer purchasing at £275,000 pays nothing in stamp duty.
Example 2: £350,000 property
| Band | Calculation | SDLT |
|---|---|---|
| £0 – £300,000 | £300,000 × 0% | £0 |
| £300,001 – £350,000 | £50,000 × 5% | £2,500 |
| Total SDLT | £2,500 |
Example 3: £475,000 property
| Band | Calculation | SDLT |
|---|---|---|
| £0 – £300,000 | £300,000 × 0% | £0 |
| £300,001 – £475,000 | £175,000 × 5% | £8,750 |
| Total SDLT | £8,750 |
Example 4: £525,000 property (no FTB relief)
On a property above £500,000, standard residential SDLT rates apply:
| Band | Calculation | SDLT |
|---|---|---|
| £0 – £250,000 | £250,000 × 0% | £0 |
| £250,001 – £925,000 | £275,000 × 5% | £13,750 |
| Total SDLT | £13,750 |
Note the cliff edge: buying at £501,000 costs £13,800 in SDLT. Buying at £499,000 costs £9,950. That £2,000 price difference creates an £3,850 SDLT saving — which is why many transactions around the £500,000 threshold are negotiated carefully.
SDLT table — first-time buyers at common price points
| Purchase price | FTB SDLT (England) | Non-FTB SDLT | Saving |
|---|---|---|---|
| £200,000 | £0 | £1,500 | £1,500 |
| £250,000 | £0 | £2,500 | £2,500 |
| £275,000 | £0 | £3,750 | £3,750 |
| £300,000 | £0 | £5,000 | £5,000 |
| £350,000 | £2,500 | £7,500 | £5,000 |
| £400,000 | £5,000 | £10,000 | £5,000 |
| £450,000 | £7,500 | £12,500 | £5,000 |
| £500,000 | £10,000 | £15,000 | £5,000 |
Figures correct for England as of 2026. Scotland and Wales have different rates.
Scotland and Wales
Scotland — Land and Buildings Transaction Tax (LBTT): FTBs in Scotland benefit from the First-Time Buyer Relief, which increases the nil-rate threshold to £175,000 (from the standard £145,000). LBTT rates above that differ from SDLT. Check the full rates at revenue.scot/taxes/land-buildings-transaction-tax.
Wales — Land Transaction Tax (LTT): Wales has its own LTT rates, with the main residential nil-rate band at £225,000. There is a separate FTB LTT relief available — check gov.wales/land-transaction-tax for current thresholds, as these are set by the Welsh Government independently.
Stamp Duty Calculator
Calculate Stamp Duty Land Tax (SDLT) for your property purchase in England.
Calculate your exact SDLTSurvey Costs: Don't Skip This
A mortgage lender's valuation is not a survey. The valuation confirms the property is worth approximately what you're paying — it protects the lender's security. It tells you almost nothing about the property's condition. Instructing your own survey is a separate, optional (but strongly recommended) expense.
The three RICS survey levels:
| Survey level | What it covers | Typical cost | Best for |
|---|---|---|---|
| Level 1 (Condition Report) | Basic condition, red/amber/green ratings | £250–£450 | New builds under NHBC warranty only |
| Level 2 (HomeBuyer Report) | Visible defects, damp, structural concerns, valuation | £400–£750 | Most standard post-1960 properties in reasonable condition |
| Level 3 (Building Survey) | Full structural inspection, roof space, beneath floors (where accessible), detailed defect report | £700–£1,500 | Pre-1950 properties, unusual construction, any signs of damp or subsidence |
Real-world return on investment of a survey:
A Level 2 survey costs £500. The surveyor notes damp in the rear bedroom wall and a defective flat roof over the kitchen extension. The buyer renegotiates £8,000 off the purchase price and insists on the seller repairing the roof before exchange. The survey pays for itself 16 times over.
Survey costs vary by region (London and the South East command premium rates) and by the surveyor's firm. Get two to three quotes. Ensure the surveyor is RICS-chartered — verify credentials at ricsrecruitment.com/find-a-surveyor.
Conveyancing Fees: What Your Solicitor Actually Does
Conveyancing is the legal process of transferring ownership of a property from seller to buyer. You appoint a solicitor or licensed conveyancer (CLC) who acts exclusively in your interests — not the seller's, not the lender's.
What your conveyancer does:
- Reviews the contract pack from the seller's solicitor
- Raises enquiries about title, boundaries, planning permissions, building regulations certificates
- Orders and reviews property searches (local authority, drainage, environmental, chancel repair if applicable)
- Reports to you on findings and flags any issues
- Manages mortgage deed execution and communications with your lender
- Handles exchange of contracts (at which point you are legally committed)
- Manages completion — receiving funds from your lender, transferring to the seller
- Pays SDLT to HMRC on your behalf (within 14 days of completion)
- Registers the new ownership with HM Land Registry
Conveyancing costs breakdown:
| Cost element | Typical range | Notes |
|---|---|---|
| Solicitor's legal fee | £800–£1,500 | Varies by property value and complexity |
| Local authority search | £100–£250 | Checks planning, highways, enforcement notices |
| Drainage and water search | £40–£80 | Confirms connection to mains |
| Environmental search | £40–£80 | Flood risk, contamination, landfill proximity |
| Chancel repair search | £20–£30 | Rare medieval liability; relevant in some rural areas |
| Land Registry registration fee | £45–£500 | Sliding scale based on property value |
| Electronic bank transfer fee | £20–£40 | Per transfer (mortgage funds to seller) |
| SDLT filing fee | £0–£50 | Some solicitors include; some charge separately |
| Total (typical £275k purchase) | £1,400–£2,300 | Solicitor fee + disbursements combined |
Land Registry fees for residential purchases in 2026:
| Property value | Land Registry fee |
|---|---|
| Up to £80,000 | £45 |
| £80,001 – £100,000 | £95 |
| £100,001 – £200,000 | £230 |
| £200,001 – £500,000 | £330 |
| £500,001 – £1,000,000 | £500 |
Fees correct for first registration via a solicitor (online registration). Paper applications are higher.
Mortgage Arrangement Fees
Most mortgage products come with either a fee (typically £999 or £1,499) or a higher rate with no fee. First-time buyers often default to adding the fee to the loan without analysing whether that's sensible.
Fee vs no-fee mortgage analysis:
| Scenario | Product A | Product B |
|---|---|---|
| Rate | 4.55% (2-year fix) | 4.75% (2-year fix) |
| Arrangement fee | £999 | £0 |
| Mortgage amount | £200,000 | £200,000 |
| Monthly payment | £1,112 | £1,140 |
| 24-month cost (payments only) | £26,688 | £27,360 |
| Add arrangement fee (Product A) | £27,687 | £27,360 |
| Which is cheaper over 2 years? | Product B by £327 | — |
At £200,000, the no-fee product is slightly cheaper over two years. At £300,000, Product A becomes cheaper (the lower rate saves more in interest than the fee costs). The break-even point is approximately £250,000–£280,000 for this rate spread.
The cost of adding the fee to the loan:
A £999 fee added to a £200,000 mortgage at 4.55% over 25 years accumulates approximately £1,680 in additional interest — you ultimately pay £2,679 for a fee that could have been cleared for £999. Pay upfront if you can.
Removal Costs
Don't underestimate removals. A full-service removal (packing, transport, unpacking) for a two-bedroom flat in a northern city costs £600–£1,000 with a reputable company. In London and the South East, the same service is typically £1,000–£2,000.
| Moving approach | Typical cost |
|---|---|
| Self-move (van hire + friends) | £100–£300 |
| Man-and-van service | £300–£700 |
| Professional removals company (2-bed) | £600–£1,200 |
| Professional removals + packing service (2-bed) | £1,000–£2,000 |
| Storage (if needed between tenancy end and completion) | £100–£300/month |
Book removals as early as possible after exchange — Friday completions (by far the most common) are taken quickly by removal firms. If your completion date slips (it happens), most companies will rearrange with reasonable notice.
Buildings Insurance: Starts at Exchange, Not Completion
This is the single most commonly misunderstood cost timing in the homebuying process.
Buildings insurance must be in force from exchange of contracts, not from completion. At exchange, you become legally responsible for the property if it is damaged (house fire, flood, storm) before completion. Your mortgage lender requires proof of buildings insurance as a condition of releasing funds — they will ask for it before completion.
Typical buildings insurance cost in 2026:
- Standard three-bedroom semi-detached: £150–£350/year
- Standard two-bedroom flat (leasehold): often included in service charge (check lease)
- Larger or high-value properties: £400–£800/year
- Flood risk areas: can be significantly higher; check Flood Re eligibility at floodre.co.uk
Contents insurance is separate and optional (though sensible) — budget an additional £100–£250/year for a furnished home.
Complete Budget Tables
Example A: £275,000 property, first-time buyer in England
| Cost item | Low estimate | High estimate |
|---|---|---|
| Deposit (10%) | £27,500 | £27,500 |
| SDLT | £0 | £0 |
| Mortgage arrangement fee | £0 | £999 |
| Survey (Level 2) | £450 | £650 |
| Conveyancing — legal fee | £850 | £1,300 |
| Conveyancing — disbursements | £350 | £550 |
| Land Registry fee | £330 | £330 |
| Removal costs | £500 | £1,000 |
| Buildings insurance (first year) | £150 | £300 |
| Contingency / minor snagging | £500 | £1,000 |
| Total beyond deposit | £3,130 | £6,129 |
| Total cash required at purchase | £30,630 | £33,629 |
Example B: £450,000 property, first-time buyer in England
| Cost item | Low estimate | High estimate |
|---|---|---|
| Deposit (10%) | £45,000 | £45,000 |
| SDLT (5% on £150k above £300k) | £7,500 | £7,500 |
| Mortgage arrangement fee | £0 | £999 |
| Survey (Level 2–3) | £550 | £1,200 |
| Conveyancing — legal fee | £1,100 | £1,800 |
| Conveyancing — disbursements | £400 | £650 |
| Land Registry fee | £330 | £330 |
| Removal costs | £700 | £1,500 |
| Buildings insurance (first year) | £200 | £400 |
| Contingency / minor snagging | £750 | £1,500 |
| Total beyond deposit | £11,530 | £15,879 |
| Total cash required at purchase | £56,530 | £60,879 |
The SDLT at £450,000 is the dominant non-deposit cost — £7,500 that must be paid to HMRC within 14 days of completion. It cannot be added to the mortgage. Budget for it as cash.
A Note on New Builds
Developers frequently offer to cover stamp duty or pay legal fees as an incentive. These offers are usually genuine — but read the terms. Developers may restrict which solicitor you use (always instruct your own independent conveyancer even if the developer's recommendation is used — or better, use your own entirely). And remember that new builds often come with a period of "snagging" — minor defects and finish issues that should be rectified under the NHBC Buildmark warranty (for properties registered with NHBC). Document everything on your moving day.
What's Next
In Part 4 of this series, we look at mortgage product selection — fixed versus tracker, two-year versus five-year fix, and how to analyse arrangement fees to find the genuinely cheapest deal over your target holding period.
Sources
- HMRC: Stamp Duty Land Tax — first-time buyers relief
- HMRC: SDLT rates and thresholds
- Revenue Scotland: LBTT — residential rates
- Welsh Revenue Authority: Land Transaction Tax
- RICS: Survey levels — consumer guide
- HM Land Registry: Registration fees
- Flood Re: Check flood risk and insurance eligibility
Frequently asked questions
What is the stamp duty threshold for first-time buyers after April 2025?
From 1 April 2025, the temporary SDLT relief that applied since September 2022 reverted to the previous rates. First-time buyers in England and Northern Ireland now pay 0% on the first £300,000 of a property's value (down from £425,000) and 5% on the portion between £300,000 and £500,000. Properties over £500,000 receive no first-time buyer relief and are taxed at standard residential rates. On a £350,000 property, a first-time buyer pays £2,500 in SDLT (5% of £50,000). On a £275,000 property, SDLT is £0.
What survey should a first-time buyer get?
The minimum you should commission is a RICS Level 2 (HomeBuyer Report), which costs £400–£750 depending on property value and location. It covers visible defects, risks and key issues but doesn't include roof spaces or under-floor areas. For properties built before 1950, unusual construction types (timber frame, thatched, concrete panel), or anything showing signs of damp, subsidence or structural movement, upgrade to a RICS Level 3 (Building Survey) at £700–£1,500. Never rely solely on the mortgage lender's valuation — it is for the lender's benefit, not yours, and checks only that the property is worth what you're paying.
How much are conveyancing fees for a first-time buyer?
Conveyancing (the legal transfer of property ownership) typically costs £800–£1,500 in solicitor's fees for a residential purchase in England in 2026. This covers reviewing the contract, carrying out property searches, liaising with the seller's solicitor, handling the mortgage funds, and registering the new ownership with the Land Registry. Disbursements (third-party costs your solicitor pays on your behalf) add a further £300–£600 and include local authority searches, drainage searches, environmental search, and Land Registry registration.
When are the various buying costs actually due?
Costs fall at different stages of the process. Survey fees are due once instructed, before exchange. Conveyancing fees are typically split: an initial payment when you instruct the solicitor (£150–£300), with the balance due just before or on completion. Stamp duty must be paid to HMRC within 14 days of completion — your solicitor handles this automatically from completion funds. Removal costs are due on moving day. Buildings insurance must be in force from exchange of contracts, not just completion.
Is it worth adding the mortgage arrangement fee to the loan?
Generally no, unless cash is genuinely tight. A £999 arrangement fee added to a £200,000 mortgage at 4.6% over 25 years costs you an extra £1,710 in total interest — so you pay £2,709 in total rather than £999 upfront. If you can pay it at completion, do. The exception is if you are close to an LTV boundary (e.g., the fee would push you above 90% LTV into a higher-rate tier) — in that case, paying upfront preserves your rate tier.
Try the calculators
Related reading
Saving Your Deposit: How Long It Really Takes in 2026 (FTB Guide, Part 1)
Realistic timeline for saving a house deposit in 2026: average UK prices, savings rates, LISA bonus, and how to shave years off the process.
FTB Mortgage Affordability in 2026: How Much Can You Borrow? (Part 2)
How lenders calculate what you can borrow in 2026: income multiples, stress tests, credit scoring, self-employed applications and how to maximise your affordability.
Fixed vs Tracker, 2-Year vs 5-Year: How to Pick Your First Mortgage Deal in 2026 (Part 4)
How to choose between fixed and tracker mortgages in 2026, and whether a 2-year or 5-year fix is right for you — with break-even analysis and BoE rate forecasts.