The Hidden Costs of Buying Your First Property

Buying a home for most people is the next logical step in adulthood, and they’ve been working towards it. It’s a big milestone up there with getting married and starting a family, even if that family involves four-legged family members, not pregnancy.

And it’s a huge deal: looking for properties, assessing your finances, saving for the deposit, and wondering if you need to call Phil and Kirsty in to help out.

But did you know about all the hidden and unexpected costs you’re going to need to pay for? Because, while it might seem obvious, MPA Magazine found that 62% of homebuyers faced unexpected costs. And these aren’t insignificant amounts. They’re sizable sums that can eat into your budget and deposit, and create a financial black hole before you’ve even put an offer in.

Let’s take a look.

Conveyancing

Conveyancing is one of those things people don’t talk about. It’s not the fun or exciting side. It’s the part that checks and double-checks everything is correct for the transferring of property ownership. They’re the people who prepare contracts, conduct the property and council searches, and manage the exchange and completion of contracts.  

Typically, you can expect to have to pay anywhere from £600 to £1,500 plus disbursements (costs paid to third parties by a solicitor on your behalf – stamp duty, search fees, land registry fees, etc.) Stamp Duty alone can ramp up property costs – it’s currently 5% on properties over £250,000. Most first time buyers forget about this being included in conveyancing fees until the invoice lands in their inbox.

Surveys and Inspections and Other Sneaky Costs

It might be tempting to skip that £400 survey now, after all, there’s a lot of money you’re paying out already on other things, and your mortgage company is going to do a “valuation” anyway. But the thing with surveys is – even if you think you know what you’re looking for – the experts see things you don’t.

In fact, one 2024 survey found that more than half of UK buyers skipped or delayed inspections because they didn’t seem necessary. Many of these you won’t be surprised to learn regretted this decision. It’s not the most glamorous expense during the property purchase, but it’s arguably one of the most important.

Moving Costs and Everything After

Anyone who has ever moved home will attest to how fast moving fees can climb: spending doesn’t just stop once you’ve paid the deposit and have the keys.

There’s the removal van, storage fees, home insurance, new locks, paint, wallpaper, new flooring, repairs, renovations, cutlery, bins, and oh, something to sit on and sleep in if you don’t already have these bits.

It’s never easy or cheap, especially if you’re starting from nothing and aren’t moving your belongings with you. This is before you address the costs of setting up utilities and paying bills. The truth is, you’ll easily burn through a grand (more if you’re in an affluent area or down south) before you’ve even unpacked a single box.

The cost of buying property doesn’t just start and end with your deposit; that’s just the beginning.