"Unknown costs, such as legal and surveyor fees, and particularly the incoming Stamp Duty change, can quickly add up"
- Ben Thompson - Mortgage Advice Bureau
When getting your feet on the housing ladder for the first time, many homebuyers might not be aware of all the additional costs. This includes Stamp Duty, legal and surveyor fees, property searches, and moving costs, all of which are in addition to the price of the property and deposit.
While not all fees are standard and individual costs will depend on a range of factors (such as the type of property and what kind of buyer you are), these can add up.
From 1st April 2025, first-time buyers will need to prepare for these 'unknown costs' to rise, with Stamp Duty changes coming into effect that will mean FTBs need to pay a bit more to move into their first home than they did before the change. According to a new analysis from Mortgage Advice Bureau, these hidden costs could total over £18,000 - on top of the deposit.
For those looking for their first home in London and the South East, where FTB prices can average £506,706, these costs could be even more significant. Stamp Duty alone on this example could cost £15,335 under the updated rules, making it crucial for buyers to plan and budget accordingly.
Estimated unknown costs:
Legal fees: £2,000
Surveyor costs up to[3]: £1,360
Property searches: £300
Stamp Duty: £15,335
Total: £18,995
The key things FTBs need to know
Split the pots
Many first-time buyers will have a savings pot dedicated to their deposit, but you could also consider making use of another high-interest savings account to dedicate to these unknown costs.
Know what you’re dealing with
Speaking with a mortgage adviser early in the process could help you be more informed. Alternatively, tools like a Stamp Duty calculator can also help you estimate costs, giving you a clearer picture of what to expect. By planning for these costs of buying, you can avoid surprises and focus on securing your dream home.
Don’t forget about moving day
Costs don't always stop with the legal and surveyor fees (or potential Stamp Duty). Make sure you also remember to budget for the moving day itself. Hiring a removal company, storage fees, or buying essentials for your new home can quickly add up, so factor them into your overall budget early on.
"Buying your first home is an exciting milestone, but some first-time buyers tend to underestimate the additional expenses involved," says Ben Thompson, "Unknown costs, such as legal and surveyor fees, and particularly the incoming Stamp Duty change, can quickly add up. It’s also important to remember some costs will need to be paid upfront, upon completion, or within 14 days of completion.
"It’s essential to factor these into your budget so as not to get caught out or cause unnecessary delays. It is also important to consider how paying extra for more in-depth surveys, for example, might save you money in the long run,"
He adds, "Speaking to a mortgage adviser can help you to know and understand these costs upfront and alleviate these concerns, giving you reassurance and clarity around your finances during the home buying process.
"Getting yourself into the strongest possible position to buy your dream first home and proceed at pace with everything in order and budgeted for is very much the best place to get to.
