Learn › Buying a home in United Kingdom

In short: To buy a home in the UK you need a deposit (typically 5–20% of the price), a mortgage for the rest, and cash for one-off costs: a property-transfer tax (SDLT in England and Northern Ireland, LBTT in Scotland, LTT in Wales), conveyancing fees of roughly £1,000–£1,800 plus disbursements, and an optional survey. After moving in you pay ongoing council tax set by your local authority. As of 2026, English first-time buyers pay no SDLT up to £300,000.

Buying a home in the United Kingdom: costs, taxes and the full process

Kontoo editorial team · Updated 06/24/2026

Buying a home in the UK means budgeting for far more than the asking price. On top of your deposit and mortgage, you face a property-transfer tax that differs across the four nations, legal (conveyancing) fees, an optional survey, and ongoing council tax. This lesson walks through each cost as of 2026 so you can build a realistic budget. It is educational information, not financial advice — tax thresholds change, so always confirm figures with the official source before you commit.

Save a deposit and get a mortgage agreement in principle. Most lenders want at least 5% of the price; the UK average first-time-buyer deposit is around 20%. A larger deposit (lower loan-to-value) usually unlocks better interest rates.
Make an offer and instruct a conveyancer. Once your offer is accepted, a solicitor or licensed conveyancer handles the legal transfer, searches and contracts. Budget roughly £1,000–£1,800 in legal fees plus several hundred pounds in disbursements (searches, Land Registry).
Arrange a survey and finalise the mortgage. A condition survey (homebuyer report or building survey) is optional but recommended to catch defects. Your lender will also run its own valuation.
Pay the property-transfer tax and complete. On completion you pay Stamp Duty Land Tax (England and Northern Ireland), or LBTT in Scotland / LTT in Wales, then receive the keys. Register with your local council for council tax.

What matters

Buying a home in the UK is a sequence of stages, each with its own cost. The two big building blocks are your deposit and your mortgage. Lenders express the loan against the price as loan-to-value (LTV): a 10% deposit is a 90% LTV mortgage. As of 2026, deposits start at about 5% with some lenders, but the average first-time-buyer deposit sits near 20%, and the most competitive rates typically appear at 75% LTV or below. The one-off cost that surprises buyers most is the property-transfer tax, and it differs by nation. In England and Northern Ireland it is Stamp Duty Land Tax (SDLT). Standard residential rates as of 2026 are 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% to £1.5 million and 12% above. Eligible first-time buyers instead pay 0% up to £300,000 and 5% from £300,001 to £500,000, with no relief above £500,000. Scotland’s LBTT (Revenue Scotland) starts at 0% up to £145,000, rising through 2%, 5%, 10% and 12%, with first-time-buyer relief lifting the nil band to £175,000. Wales’s LTT (Welsh Revenue Authority) starts at 0% up to £225,000 with no first-time-buyer relief. An additional-property surcharge applies in all three systems if you already own a home. Legal work, called conveyancing, is handled by a solicitor or licensed conveyancer. As of 2026, typical legal fees run roughly £1,000–£1,800, plus disbursements (third-party costs such as local searches and Land Registry fees) often around £700. A survey is optional but wise: a homebuyer report or a fuller building survey flags defects before you are committed. Once you own the home, council tax is the main recurring local charge. Every home in England, Scotland and Wales sits in a valuation band, and the bill depends on the band and your local authority. As of 2026-27, the average Band D bill in England is £2,392, up 4.9% on the previous year — but the actual amount varies widely by area, so check the specific council before buying.

ExampleWorked example (England, first-time buyer, as of 2026). Purchase price £350,000 with a 10% deposit of £35,000, so a £315,000 mortgage at 90% LTV. Stamp Duty: 0% on the first £300,000 = £0, plus 5% on the £50,000 above £300,000 = £2,500. Add conveyancing of about £1,500 in legal fees plus roughly £700 in disbursements, and a homebuyer survey of about £500. Upfront cash needed: £35,000 deposit + £2,500 SDLT + £1,500 + £700 + £500 ≈ £40,200, on top of the mortgage. Ongoing, budget for council tax (England average Band D ≈ £2,392 a year for 2026-27, but check your local band and council). Figures are rounded; confirm current rates before you commit.

Use the Kontoo mortgage calculator (/mortgage-calculator) to test how deposit size and interest rate change your monthly payment, then confirm the tax due on the official GOV.UK Stamp Duty page (or revenue.scot / gov.wales) before you budget.

In depth

Loan-to-value and why it drives your rate

Loan-to-value (LTV) is the mortgage as a percentage of the price. Lower LTV means the lender risks less, so rates fall in steps — notably at 90%, 85% and 75% LTV. A larger deposit therefore does double duty: it shrinks the loan and can move you into a cheaper rate band, compounding the saving over a fixed term. Model the difference with the Kontoo mortgage calculator before deciding how much to put down.

How council tax bands work

In England, council tax bands (A to H) are based on what a property would have sold for on 1 April 1991, not today’s value, so the banding can feel outdated. Band D is the reference point and every other band is a fixed ratio of it. Bills vary sharply by local authority, so two identical homes in different councils can cost very different amounts each year. Always check the specific band and council rate before you buy.

Why the four nations differ

Property-transfer tax is devolved. England and Northern Ireland keep SDLT; Scotland set up LBTT through Revenue Scotland; Wales set up LTT through the Welsh Revenue Authority. The bands, thresholds and first-time-buyer treatment differ, so a home at the same price can attract very different tax depending on where it is. Use the relevant official portal — GOV.UK, revenue.scot or gov.wales — to confirm the exact charge.

Checklist

Have I saved enough for both the deposit and the separate one-off costs (transfer tax, conveyancing, survey)?
Do I know which transfer tax applies where I am buying — SDLT, LBTT or LTT — and the exact amount due?
Have I checked the property’s council tax band and the local authority’s annual rate?
Have I compared mortgage rates at my actual loan-to-value, not just the lowest advertised rate?

Common myths

Myth: First-time buyers never pay Stamp Duty.

Reality: Relief is capped. As of 2026 in England, first-time buyers pay 0% only up to £300,000, then 5% from £300,001 to £500,000, and the relief disappears entirely above £500,000. Scotland’s relief is smaller and Wales has none.

Myth: A 5% deposit is just as good as a bigger one.

Reality: A 5% deposit means a 95% LTV mortgage, which sits in the highest-risk band and usually carries the highest interest rates. Putting down more reduces your LTV and typically lowers both your rate and your monthly payment.

Myth: The lender’s valuation is the same as a survey.

Reality: A mortgage valuation only protects the lender by confirming the property is worth the loan. It does not assess the property’s condition for you. A homebuyer report or building survey is a separate, buyer-facing check for defects.

Sources

Frequently asked questions

How much Stamp Duty does a first-time buyer pay in England?

As of 2026, eligible first-time buyers in England and Northern Ireland pay 0% SDLT on the first £300,000 and 5% on the portion from £300,001 to £500,000. Above a £500,000 purchase price the relief no longer applies and standard rates are used. Standard residential rates start at 0% up to £125,000, then 2%, 5%, 10% and 12% for higher bands. Check GOV.UK for the current figures.

Is the property tax the same across the whole UK?

No. England and Northern Ireland use Stamp Duty Land Tax (SDLT). Scotland uses Land and Buildings Transaction Tax (LBTT), administered by Revenue Scotland, with a 0% band up to £145,000 and first-time-buyer relief to £175,000. Wales uses Land Transaction Tax (LTT), administered by the Welsh Revenue Authority, with a 0% band up to £225,000 and no dedicated first-time-buyer relief.

How much deposit do I need?

Most lenders require a minimum of 5% of the property’s value, so a 95% loan-to-value mortgage is possible. However, the average first-time-buyer deposit in the UK is around 20%. A bigger deposit lowers your loan-to-value ratio, which usually means lower interest rates and smaller monthly payments.

All lessons · Glossary · Editorial · Kontoo does the math and explains – this is general education, not tax, legal or financial advice.

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