The Costs of Buying a House in London

The purchase price is only one part of buying a home. Buyers also need to plan for tax, mortgage costs, legal work, surveys, moving expenses and the ongoing cost of owning the property.

For London buyers, this is especially important because higher prices, leasehold flats and service charges can affect the total budget.

Deposit and mortgage costs

Most buyers need a deposit plus a mortgage offer before they can proceed with confidence. Lenders may also charge arrangement, valuation or product fees, and buyers should check whether these are paid upfront or added to the mortgage.

A mortgage agreement in principle can help set a realistic search range, but it is not a final mortgage offer. The lender will still assess the property, your finances and the valuation.

Stamp Duty Land Tax

As at August 2026, residential Stamp Duty Land Tax in England is charged in bands: 0% up to £125,000, 2% from £125,001 to £250,000, 5% from £250,001 to £925,000, 10% from £925,001 to £1.5 million and 12% above £1.5 million.

First-time buyer relief can reduce SDLT for eligible purchases up to £500,000. Buyers purchasing an additional home usually pay a 5% surcharge on top of the standard rates, and non-UK resident buyers usually pay a further 2% surcharge. Use the official SDLT calculator or take tax advice for your exact position.

Legal fees, searches and surveys

A solicitor or conveyancer will check title, raise enquiries, handle searches, report on the contract and manage completion. Searches commonly include local authority, water and drainage, and environmental searches.

A mortgage valuation is for the lender. A survey is for you. Buyers should consider a survey, especially for older homes, period conversions, properties with visible defects or leasehold flats in buildings with planned works.

Leasehold and building costs

Many London flats are leasehold. Buyers should check lease length, ground rent, service charge, reserve fund, building insurance, planned major works, restrictions on alterations and whether consent is needed for letting or pets.

Service charges can materially affect affordability, so ask for recent accounts, budgets and details of any section 20 major-works notices where relevant.

Moving and ownership costs

Removals, storage and cleaning.
Buildings insurance from exchange if required by your lender.
Contents insurance, utilities, broadband and council tax.
Furniture, repairs, decoration and emergency funds after completion.
Ongoing mortgage payments, service charge or estate charges.

Budget before you offer

A strong offer is easier to make when you understand the full cost of purchase. That includes what you can pay, what the property may need after completion and how quickly you can move through legal checks.

If you are planning to buy in London, contact Allie Home at sales@alliehome.co.uk for tailored property advice.