The real cost of buying a home in 2026

When you’re looking to buy a home, your budget is one of the most important factors when it comes to making a decision on which property is right for you. However, there’s more to consider than just the asking price, and by the time you pick up the keys for your new home, you could have easily spent five to ten per cent more than the asking price. 

Every week we talk buyers through the same surprise costs that come up again and again. Here’s a clear breakdown of the true cost of buying a home, so you can budget with confidence from day one. 

Deposit  

Most lenders will accept between a five and ten per cent deposit, but that might not be enough to secure the home you want, or get the best available mortgage rates. 

The bigger deposit you can put down, the less you have to borrow and the less interest you’ll have to pay over the life of your mortgage, so it can be worth stretching for a higher percentage if you can. 

Stamp Duty Land Tax (SDLT) 

This is the cost that takes most buyers by surprise since the rules changed in 2025. 

Standard rates (England & Northern Ireland):

• 0% on the first £125,000
• 2% on £125,001-£250,000
• 5% on £250,001-£925,000
• 10% on £925,001-£1.5 million
• 12% above £1.5 million

First-time buyer relief:

• 0% on the first £300,000
• 5% on £300,001-£500,000
• No relief at all above £500,000 — standard rates apply to the whole price

Mortgage costs 

Aside from the interest rates, there are costs associated with arranging your mortgage which you need to consider: 

Arrangement/product fees can often be anywhere from £0-£2,000. These are sometimes added to the loan itself, which means you also pay interest on the fee

When your lender checks that the property is worth what you’re paying you can sometimes encounter a fee which is a few hundred pounds.

If you use a mortgage broker, expect anywhere from free (paid via lender commission) to £500+. We always recommend using a broker that doesn’t charge you any fees. 

Smaller admin charges that add up, like transfer fees. 

Legal and conveyancing fees 

You’ll need a licensed conveyancer or solicitor to handle the legal transfer of the property. If you’re buying and selling, you’ll need a solicitor in place to handle both the purchase and the sale which has two separate fees. 

Conveyancing and legal fees typically include: 

• Solicitor/conveyancer fees which are usually £800-£1,500 plus VAT
• Local authority searches including checks on planning, flooding, and local issues. These are typically £250-£450
• Land Registry fees which are charged on a sliding scale based on property value 
• Leasehold-specific costs. If you’re buying a flat or leasehold property, expect additional charges for reviewing the lease and liaising with the freeholder 

Surveys 

You might be tempted to skip the surveys when you are buying, however this can cost you more money in the long run if you miss crucial faults on the property like a leaking roof or subsidence. Any survey that flags an issue will likely save you significantly more than it cost, and you can often use them for grounds to renegotiate the property price or let you know when you should walk away from a purchase. 

There are three types of surveys you can order: 

• Condition report. This is the most basic option, from around £250-£400
• HomeBuyer report. A mid-level survey covering structural issues, from around £400-£1,000
• Full structural (Building) survey.This kind of survey is recommended for older or unusual properties, from around £600-£1,500+

Moving day costs 

Unfortunatley the fees don’t stop as soon as you’ve completed on your purchase. You still need to think about the practicalities of moving into your new home and some of the key things to arrange ahead of turning your key in the door. 

Firstly, removals can cost anywhere from a few hundred pounds for a small flat to £1,500+ for a large family home. If you don’t have any way of moving your belongings into your new home, you’ll likely need a removals service. It’s important to remember that it’s not only things like clothes, plates and picture frames that will need to move, but all of your large furniture and white goods. 

Another important thing to consider is that your buildings insurance needs to be in place from the point of exchange, not completion. This is because when you have exchanged you are legally and financially responsible for the property and so most mortgage lenders insist on the building insurance being in place from the exchange date. 

Utility bills and council tax are another set of costs that become your responsibility from completion. Although they are rarely huge individually, they are costs that add up quickly in the first month after your move.  

Ongoing charges 

Some of the biggest budgeting mistakes happen after moving in, not before: 

• Ground rent and service charges: if you’re buying leasehold, these are ongoing costs that can run into hundreds or thousands of pounds a year
• Buildings insurance: an ongoing annual cost, not a one-off
• Maintenance reserve: a good rule of thumb is to set aside around 1% of the property’s value each year for repairs and upkeep

A Realistic Total: What It Actually Adds Up To

Take a fairly typical purchase, a £350,000 home bought by a first-time buyer:

For a home mover on the same purchase price, swap in the standard SDLT rate (£7,500 instead of £2,500), and the total jumps to roughly £11,850.

These are indicative figures rather than guarantees, but they show why it pays to budget for the full picture, not just the deposit. 

How Robert Watts Can Help

Buying a home involves a lot of moving parts, and the costs above are exactly the kind of thing we help buyers plan for every day. Whether it’s connecting you with trusted local solicitors and surveyors, talking through realistic budgets for a property you’re considering, or simply making sure there are no surprises later in the process, we’re here to help you buy with confidence.

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