🏡 The True Cost of Buying a Home in the UK
Buying a property—whether it’s your first home, next home, or an investment—is one of life’s biggest financial decisions.
At M&M Estate and Letting Agents, we work with hundreds of buyers every year across Gravesend and the wider South East, and one thing remains consistent:
👉 Most buyers underestimate the true cost of purchasing a home.
So, to help you plan with confidence, we’ve created a complete guide breaking down the real costs associated with buying a property in the UK, tailored for:
- First-time buyers
- Home movers
- Property investors / landlords
At the end, you’ll find a full Appendix listing the sources used when calculating the figures and tax bands.
🔍 1. The Core Costs Every Buyer Should Expect
Before we get into the differences between buyer types, here are the most common costs that everyone encounters when purchasing a property:
🔸 Deposit
Typically, 5–20% of the purchase price.
A larger deposit = better rates, lower monthly payments.
🔸 Stamp Duty Land Tax (SDLT)
Tax paid on property purchases above certain thresholds.
The amount varies depending on whether you are a first-time buyer, home mover, or investor.
🔸 Mortgage Fees
These may include:
- Mortgage arrangement/product fee: £0–£2,500
- Valuation fee: £100–£300
Some lenders incorporate the fees into the mortgage—others require them upfront.
🔸 Conveyancing (Solicitor) Fees
Legal work, local authority searches, identity checks, and Land Registry fees typically total:
£1000–£1,800+
🔸 Surveys
Depending on the level you choose:
- HomeBuyer Report: £300–£600
- Full Structural Survey: £600–£1,500+
🔸 Moving Costs
Removals, van hire, packing materials:
£300–£2,000+ depending on distance and volume.
👶 2. First-Time Buyers: What to Expect
Buying your first home is incredibly exciting—but also financially overwhelming. Here’s what first-time buyers working with M&M should prepare for:
💷 Stamp Duty Relief
As of 2025, first-time buyers pay no SDLT on homes up to £300,000.
For homes priced £300,001–£500,000, SDLT is charged at 5% on the amount above £300,000.
Example:
Buying at £275,000 → £0 SDLT
Buying at £400,000 → 5% of £100,000 = £5,000 SDLT
Typical First-Time Buyer Costs
Cost
Range
Deposit
£15,000–£60,000+
Conveyancing
£500–£1,800
Mortgage fees
£0–£2,500
Valuation & survey
£300–£1,500
Moving costs
£300–£1,500
Stamp Duty
£0–£5,000
⭐ M&M Tip
Many first-time buyers underestimate legal fees and surveys. We always recommend budgeting £4,000–£10,000 (excluding your deposit) to avoid surprises.
🔄 3. Home Movers: Costs When Moving Up the Ladder
Home movers encounter similar costs to first-time buyers but without the benefit of SDLT relief—and with added costs when selling their current home.
💷 Stamp Duty for Home Movers
SDLT applies on purchases above £125,000.
Because no relief is available for standard home movers, SDLT is often one of the biggest costs.
Approximate examples:
- £300,000 home → around £4,500 SDLT
- £500,000 home → £15,000+ SDLT
Additional Home-Mover-Only Costs
Cost
Typical Range
Estate agent fees
1–2% + VAT of sale price
Storage/bridging costs
Varies
Additional surveys (older homes)
£600–£2,000
⭐ M&M Insight
When we help sellers in Gravesend complete a like-for-like move, we often see their combined buying and selling costs exceed £15,000–£20,000, even before Stamp Duty.
🏢 4. Property Investors: What You Must Budget For
Investors and landlords face higher upfront taxation and longer-term financial planning requirements.
💷 Investor Stamp Duty Surcharge
Buy-to-let and second-home buyers pay a 3% surcharge on top of standard SDLT bands.
Example:
Buying a £300,000 investment property → extra £9,000 due to surcharge.
Other Investor-Specific Costs
Cost
Notes
Letting agent setup fees
Often 8–12% (fully managed)
Landlord insurance
Higher than standard home insurance
Inventory, safety certificates
EPC, gas safety, EICR
Future Capital Gains Tax
Applies when selling
⭐ M&M Investor Advice
The upfront 3% surcharge changes the economics of many deals. We run full ROI forecasts for our investor clients to ensure the purchase still produces long-term gains.
📌 5. Summary Comparison Table
Buyer Type
SDLT Position
Total Estimated Buying Costs (Excluding Deposit)
First-Time Buyer
Relief up to £300k
£4,000–£10,000
Home Mover
SDLT from £125k
£10,000–£20,000+
Investor
+3% surcharge
£12,000–£25,000+
📞 Need Advice or Ready to Begin Your Move?
If you're thinking about buying your first home, moving to your next one, or investing in property, the team at M&M Estate and Letting Agents is here to help every step of the way.
We offer clear, friendly guidance tailored to your situation — whether you need a Stamp Duty calculation, an affordability check, or a full market overview for Gravesend and the surrounding areas.
👉 If you’d like personalised advice or have any questions about the costs of buying a property, please contact our office and one of our experts will be delighted to help.
M&M Estate and Letting Agents – Here to guide you home.
