When you’re purchasing a home, it’s easy to get up to date with what you'll pay for a mortgage, but that’s not every you have to budget for. New data has revealed that the extra costs of buying a house now add up to a third from the average UK salary.
Research by comparison site Really Moving has found that between 2022 and 2022, the cost of purchasing a home increased by 6% to lb9,812. That's a third from the median UK salary, which currently stands at lb29,588.
Cuts to stamp duty for first-time buyers, however, have meant that those buying their first home are actually paying under before.
Here, we take a look at the expense you need to be prepared for when it comes to purchasing a home.
Cost of purchasing a house spikes for home movers
After the mortgage, stamp duty – a tiered tax you have to pay when purchasing a property over lb125,000 in England or Northern Ireland – may be the highest cost home movers will face. Buyers in Scotland pay land and buildings transaction tax (LBTT) and in Wales it’s land transaction tax (LTT).
According to Really Moving, stamp duty now accounts for nearly half (46%) from the total price of moving home. Existing homeowners now pay typically lb4,500 in stamp duty when moving to their next property – an annual increase of 11%.
The average fee paid for conveyancing, the legal work involved with buying and selling property, has also risen. In 2022, the average conveying cost for home movers was lb1,497 – a 6% increase from lb1,149 in 2022.
The table below shows how the average cost of moving house has changed for non-first-time buyers.
| Costs for home movers | 2022 | 2022 | Change |
| Stamp duty | lb4,500 | lb4,050 | +11% |
| Estate agent fees | lb2,880 | lb2,880 | 0% |
| Conveyancing | lb1,497 | lb1,417 | +6% |
| Survey | lb400 | lb397 | +1% |
| Removals | lb480 | lb480 | 0% |
| EPC | lb55 | lb55 | 0% |
| Total | lb9,812 | lb9,279 | +6% |
First-time buyers pay less when buying a home
The picture is brighter for first-time buyers, who're now being economical on costs and fees than previously. In 2022, the average cost fell 29%, from lb2,559 to lb1,809.
This is basically due to the fact that aspiring homeowners received some help in the 2022 Autumn Budget, when stamp duty was scrapped for first-time buyers purchasing properties worth as much as lb300,000.
In 2022, the typical first-time buyer paid lb800 in stamp duty, however this bill has fallen to zero for many – significantly bringing down the all inclusive costs of buying the first home.
| Costs for first-time buyers | 2022 | 2022 | Change |
| Stamp duty | lb0 | lb800 | -100% |
| Estate agent fees | lb0 | lb0 | 0% |
| Conveyancing | lb929 | lb882 | +5% |
| Survey | lb400 | lb397 | +1% |
| Removals | lb480 | lb480 | 0% |
| EPC | lb0 | lb0 | 0% |
| Total | lb1,809 | lb2,559 | -29% |
What goes into the cost of buying a home?
When you’re purchasing a home, there are several things you’ll need to budget for beyond the mortgage deposit. We’ve rounded up four key costs you’ll need to factor into the price of buying a home within the gallery below.
Get expert assist with your home-buying finances
Whether you’re looking to bring your initial step on to the property ladder or moving to a different place, talking with a completely independent mortgage broker can help you work out the best financial choices for you.
*Updated 18/2/2022 *
