Total Cost Overview: What Buying a New Build Actually Costs
Here is the full picture of costs beyond the purchase price. The amounts vary by property price, location, and your individual circumstances, but this gives you a realistic planning framework.
Complete Cost Breakdown
| Category | Cost Item | Typical Range | When Paid |
|---|---|---|---|
| Legal and transaction | Conveyancing solicitor fees | £1,000-£2,500 | On completion |
| Stamp Duty Land Tax (SDLT) | £0-£15,000+ (depends on price and buyer status) | Within 14 days of completion | |
| Land Registry fee | £100-£500 | On completion (via solicitor) | |
| Search fees | £250-£400 | During conveyancing | |
| Bank transfer (CHAPS) fee | £25-£50 | On completion | |
| Mortgage | Mortgage arrangement fee | £0-£2,000 | On application or added to loan |
| Mortgage valuation fee | £0-£500 (often free for new builds) | On application | |
| Mortgage broker fee (if used) | £0-£500 | On mortgage offer or completion | |
| Higher lending charge (if applicable) | Rare for new builds | On completion | |
| Insurance | Buildings insurance (from completion) | £150-£400/year | Annual (start from completion date) |
| Contents insurance | £100-£300/year | Annual | |
| Life insurance (if required by lender) | £15-£80/month | Monthly | |
| Income protection (optional) | £20-£100/month | Monthly | |
| Moving | Removal company | £400-£2,000 | Moving day |
| Packing materials | £50-£200 | Before moving day | |
| Storage (if needed) | £80-£250/month | Monthly | |
| Cleaning (previous property) | £100-£400 | Before/on moving day | |
| Mail redirection (Royal Mail) | £36-£69 for 3-12 months | Before moving | |
| Pet/childcare on moving day | £0-£100 | Moving day | |
| Setting up the new home | Utility connections and deposits | £0-£200 | First month |
| Broadband installation | £0-£60 | First month | |
| Council tax (first month) | £100-£350 | Monthly from completion | |
| TV licence | £169.50/year | Annual | |
| Electoral roll registration | Free | Within weeks of moving | |
| New home essentials (curtains, blinds, light fittings) | £500-£5,000 | First weeks | |
| Garden basics (if no landscaping included) | £200-£2,000 | First months |
Total Additional Costs by Property Price
| Purchase Price | First-Time Buyer (estimated total additional) | Home Mover (estimated total additional) |
|---|---|---|
| £200,000 | £3,000-£8,000 | £4,500-£12,000 |
| £300,000 | £4,000-£12,000 | £7,000-£18,000 |
| £400,000 | £8,000-£18,000 | £12,000-£25,000 |
| £500,000 | £12,000-£25,000 | £18,000-£35,000 |
The wide ranges reflect differences in stamp duty status, furnishing needs, removal distance, and personal choices. First-time buyers benefit from stamp duty relief (nil-rate band up to £300,000 from April 2025) and are often moving from rental accommodation with fewer items.
For detailed stamp duty calculations, see our stamp duty guide.
Conveyancing and Legal Costs
Conveyancing is the legal process of transferring property ownership. For new builds, it is typically more complex than a standard purchase because of additional checks.
What Conveyancing Fees Cover
| Item | Typical Cost | What It Is |
|---|---|---|
| Solicitor's basic fee | £800-£1,800 | The legal work itself — reviewing contracts, conducting searches, handling completion |
| New build supplement | £100-£300 | Additional work specific to new builds: checking NHBC/warranty, reviewing developer contracts, dealing with management company |
| Local authority searches | £150-£300 | Checks for planning applications, road schemes, contaminated land, tree preservation orders |
| Environmental search | £40-£80 | Flood risk, contaminated land, subsidence risk |
| Water and drainage search | £30-£60 | Connection to mains water and sewage, adoption status of drains |
| Land Registry search | £3-£6 | Confirms current ownership and charges on the land |
| Bankruptcy search | £2 | Checks you (the buyer) are not bankrupt |
| CHAPS fee | £25-£50 | Bank transfer fee for sending completion funds |
| Land Registry registration fee | £100-£500 | Government fee for registering your ownership (varies by purchase price) |
| Leasehold supplement (if applicable) | £200-£500 | Additional work for leasehold properties — checking lease, service charges, management company |
| Help to Buy administration (if applicable) | £150-£300 | Additional work if using a government scheme |
How to Reduce Conveyancing Costs
| Strategy | Potential Saving | Notes |
|---|---|---|
| Get multiple quotes | £200-£500 | Compare at least 3 solicitors. Ensure quotes include all disbursements, not just the base fee |
| Use a developer-recommended solicitor | £0-£300 | Some developers negotiate reduced rates with panel solicitors. Check they are independent and act in your interest |
| Ask if the developer will pay legal fees | £1,000-£2,000 | Some developers offer to contribute towards or cover legal fees as an incentive. Always check what conditions are attached |
| Choose a fixed-fee solicitor | Predictability | Fixed fees prevent surprises. Confirm what is and is not included before instructing |
| Online/remote conveyancers | £100-£400 | Often cheaper than high-street firms. Check reviews and ensure they have new build experience |
For a detailed guide to the conveyancing process for new builds, see our conveyancing guide.
Stamp Duty Land Tax
SDLT is often the single largest additional cost when buying a new build. The amount depends on the purchase price, whether you are a first-time buyer, and whether you already own another property.
SDLT Rates from April 2025
| Band | Standard Rate | First-Time Buyer Rate | Additional Property Rate (+5%) |
|---|---|---|---|
| Up to £125,000 (£300,000 for FTBs) | 0% | 0% | 5% |
| £125,001-£250,000 | 2% | 5% (for FTB portion above £300,000) | 7% |
| £250,001-£925,000 | 5% | 5% | 10% |
| £925,001-£1,500,000 | 10% | N/A (FTB relief only up to £500,000) | 15% |
| Over £1,500,000 | 12% | N/A | 17% |
SDLT Examples for New Builds
| Purchase Price | First-Time Buyer | Home Mover | Additional Property |
|---|---|---|---|
| £250,000 | £0 | £2,500 | £12,500 |
| £300,000 | £0 | £5,000 | £17,500 |
| £350,000 | £2,500 | £7,500 | £22,500 |
| £450,000 | £7,500 | £12,500 | £27,500 |
Scotland uses Land and Buildings Transaction Tax (LBTT) with different rates and a nil-rate band of £145,000. Wales uses Land Transaction Tax (LTT) with a nil-rate band of £225,000. Both have additional property surcharges (Scotland 8%, Wales 4%).
For full stamp duty calculations and strategies for new build buyers, see our stamp duty guide.
Mortgage-Related Costs
Typical Mortgage Costs
| Cost | Range | Can You Avoid It? |
|---|---|---|
| Arrangement fee | £0-£2,000 | Yes — some products have no arrangement fee (but may have a higher interest rate). Compare total cost of the deal, not just the fee |
| Valuation fee | £0-£500 | Often waived for new builds by many lenders (they accept the purchase price). Check with your lender |
| Broker fee | £0-£500 | Some brokers charge no fee (they earn commission from the lender). Fee-charging brokers may access better deals |
| Telegraphic transfer fee | £25-£50 | No — charged by lender for sending mortgage funds to your solicitor |
Should You Add the Arrangement Fee to the Mortgage?
| Option | Advantage | Disadvantage |
|---|---|---|
| Pay upfront | Lower total cost — you do not pay interest on the fee | Reduces your cash reserves at a time when you need money for moving |
| Add to mortgage | Preserves cash for moving costs | You pay interest on the fee for the life of the mortgage. A £2,000 fee at 5% over 25 years costs an extra £1,500+ in interest |
For comprehensive mortgage guidance including affordability, types, and application strategies, see our new build mortgages guide.
Removal and Moving Costs
Moving costs vary enormously depending on how much you own, how far you are moving, and how much you do yourself.
Professional Removal Company Costs
| Move Type | Typical Cost | Includes |
|---|---|---|
| Studio/1 bed — local (under 50 miles) | £300-£600 | Small van, 2 movers, 3-4 hours |
| 2-3 bed — local | £500-£1,000 | Large van, 2-3 movers, 4-6 hours |
| 4-5 bed — local | £800-£1,500 | Large van or two vans, 3-4 movers, full day |
| 2-3 bed — long distance (100+ miles) | £1,000-£2,000 | Large van, 2-3 movers, full day including travel |
| 4-5 bed — long distance | £1,500-£3,000 | Two vans or large lorry, 3-4 movers, full day |
| Packing service (add-on) | £200-£600 | Professional packing of all items before moving day |
DIY Moving Costs
| Item | Cost | Notes |
|---|---|---|
| Van hire (self-drive) | £50-£200/day | Luton van suitable for most 2-3 bed moves. Check insurance cover |
| Fuel | £30-£100 | Depends on distance. Large vans are not fuel-efficient |
| Packing materials | £50-£150 | Boxes, tape, bubble wrap, paper. Supermarkets often give away boxes for free |
| Help from friends/family | £0 (but buy pizza and drinks) | Risk of damage, injury, and relationship strain. Insure your items |
How to Reduce Moving Costs
| Strategy | Saving | Notes |
|---|---|---|
| Move mid-week | 20-30% | Monday to Thursday is significantly cheaper than Friday/weekend |
| Move mid-month | 10-20% | End of month is peak time for moves (rental contract endings) |
| Avoid peak seasons | 10-20% | Summer and school holidays are busiest. January-March is cheapest |
| Declutter before moving | £100-£500 | Less to move = smaller van = lower cost. Sell items on eBay, Facebook Marketplace, or donate to charity |
| Get 3+ quotes | £100-£400 | Prices vary significantly between companies for the same move |
| Pack yourself | £200-£600 | Do your own packing and use the removal company for loading/transport only |
| Collect free boxes | £30-£100 | Supermarkets, local buy-nothing groups, friends who have recently moved |
Furnishing an Empty New Build
Unlike buying a second-hand home where you inherit curtain poles, light fittings, and sometimes carpets, a new build comes as a blank canvas. This is a significant cost that catches many buyers off guard.
What New Builds Typically Include and Exclude
| Usually Included | Sometimes Included (check specification) | Usually Not Included |
|---|---|---|
| Kitchen (fitted units, worktops, sink) | Oven and hob | Fridge/freezer |
| Bathroom suites | Integrated dishwasher | Washing machine |
| Central heating system | Washing machine plumbing (connection point only) | Tumble dryer |
| Flooring (varies — check specification) | Downstairs flooring (tiles or laminate) | Upstairs carpet (sometimes standard, sometimes upgrade) |
| Internal doors | Turf or seed in garden | Light fittings (often just pendant holders) |
| External doors and windows | Garage door | Curtains, blinds, curtain poles |
| Smoke and CO alarms | TV aerial connection | TV aerial itself (if not pre-wired to communal system) |
New Home Essentials Budget
| Category | Budget Range | Items |
|---|---|---|
| Window coverings | £300-£3,000 | Curtains, blinds, or shutters for all windows. New builds often have many large windows |
| Light fittings | £100-£1,000 | Pendant lights, ceiling fittings, lamps. Most new builds come with bare bulb holders only |
| Flooring (if not included) | £500-£5,000 | Carpet for bedrooms, laminate/vinyl for other areas. Check what the developer includes |
| White goods | £500-£2,000 | Fridge/freezer, washing machine, tumble dryer. Check what is included in specification |
| Garden essentials | £200-£2,000 | Lawnmower, garden tools, outdoor storage, plants, fencing treatment |
| Furniture (if first home) | £2,000-£10,000+ | Bed, sofa, dining table, storage. First-time buyers often need everything |
| Shelving and storage | £100-£500 | New builds often have limited built-in storage beyond kitchen and wardrobes |
How to Reduce Furnishing Costs
| Strategy | Detail |
|---|---|
| Buy in stages | You do not need everything on day one. Prioritise bedroom, kitchen, and bathroom. Living room and decorative items can wait |
| Use developer upgrade offers | If the developer offers flooring, appliances, or blinds as part of the deal, this can save £1,000-£5,000 |
| Buy second-hand furniture | Facebook Marketplace, eBay, charity shops, and house clearance shops offer significant savings |
| IKEA and budget retailers | Functional furniture at a fraction of premium prices. Good enough for the first few years |
| Ask for furniture as gifts | If family ask what you want for a housewarming, suggest practical items |
| Wait for sales | Black Friday, January sales, bank holiday sales — time major purchases around discount periods |
| Measure before buying | New build rooms may be smaller than expected. Measure carefully to avoid expensive returns |
Developer Incentives That Save Money
Developers regularly offer incentives to attract buyers, and these can significantly reduce your overall costs. However, some incentives are genuinely valuable while others are marketing tactics. Understanding the difference saves money.
Common Developer Incentives
| Incentive | Typical Value | Genuinely Helpful? | Watch Out For |
|---|---|---|---|
| Contribution to legal fees | £500-£2,000 | Yes — directly reduces your costs | May be conditional on using the developer's recommended solicitor |
| Stamp duty paid | Varies (£0-£15,000+) | Yes — significant cash saving | Check whether the incentive is genuine or if the property price has been inflated to compensate |
| Flooring package included | £2,000-£8,000 | Yes — saves money and hassle | Check the quality of the flooring offered. Sometimes the "free" option is basic grade. You may prefer to upgrade at extra cost or install your own |
| Appliance package | £500-£3,000 | Yes — saves money on white goods | Check brands and models. Some packages include budget appliances |
| Part exchange | Convenience value | Sometimes — saves the hassle of selling your existing home | Developer typically offers 90-95% of market value. You lose 5-10% compared to selling on the open market. Worth it for speed and certainty, not for best price |
| Deposit contribution | Up to 5% of purchase price | Depends — may affect your mortgage | Lenders treat this as an incentive, not a genuine deposit. If total incentives exceed the lender's threshold (typically 5% of purchase price), they reduce the property valuation accordingly |
| Upgraded kitchen/bathroom | £2,000-£10,000 | Yes — if you wanted the upgrades anyway | Only valuable if you would have chosen those upgrades. Do not pay extra for features you do not want |
| Free window coverings / blinds | £500-£2,000 | Yes — reduces immediate move-in costs | Check quality and whether you get a choice of style/colour |
The 5% Incentive Rule
Most mortgage lenders cap the total value of developer incentives at 5% of the purchase price (some allow up to 10% on higher-value properties). If incentives exceed this cap, the lender reduces the property valuation by the excess amount, which increases your loan-to-value ratio and may affect your mortgage terms.
| Purchase Price | 5% Incentive Cap | Example |
|---|---|---|
| £250,000 | £12,500 | Developer offers £5,000 flooring + £2,000 legal fees + £2,500 stamp duty = £9,500 total. Within cap |
| £350,000 | £17,500 | Developer offers £8,000 flooring + £2,000 legal fees + £7,500 stamp duty + £3,000 appliances = £20,500. Exceeds cap by £3,000 |
| £500,000 | £25,000 | More headroom for higher-value properties |
Negotiating Better Incentives
| Tactic | When It Works Best |
|---|---|
| Ask for a price reduction instead of incentives | A lower price reduces your stamp duty, deposit requirement, and mortgage amount. Often better than incentives |
| Negotiate at end of quarter/financial year | Developers have sales targets. March, June, September, and December are best for negotiating |
| Buy the last few units on a phase | Developers want to complete phases. Last units often have the most flexibility |
| Buy off-plan early | Early-bird pricing is often genuinely lower. The developer wants confirmed sales to secure construction finance |
| Ask for extras rather than discounts | Developers often prefer to include extras (flooring, upgrades) rather than reduce the headline price, because it protects comparable values for other plots |
| Be prepared to walk away | Always. If the deal is not right, there are other developments |
For detailed information on how developer incentives affect your mortgage, see our mortgage affordability guide.
Hidden Costs Most Buyers Miss
These are the expenses that do not appear in any brochure but can add up significantly.
Costs People Forget
| Hidden Cost | Typical Amount | Why People Miss It |
|---|---|---|
| Service charges (leasehold/managed estate) | £100-£400/month | Not always highlighted during the sales process. Can be a significant ongoing cost for apartments and managed estates |
| Estate management fees (freehold estates) | £50-£200/year | Even freehold houses on managed estates often pay for communal area maintenance |
| Ground rent (pre-June 2022 leases only) | £0-£500/year | New leases after June 2022 must be peppercorn (zero). Older leasehold new builds may have ground rent |
| Snagging inspector | £300-£600 | Optional but recommended. Professional inspection finds defects you will miss |
| Council tax band may be higher than expected | Varies | New builds are valued by the VOA and may be placed in a higher band than you anticipated. Check before buying |
| Energy costs during drying-out | Extra £200-£500 in year 1 | You need to keep heating on constantly during the drying-out period, even in mild weather |
| Parking permits | £0-£200/year | Some developments require permits even for your own allocated space |
| Bin charges (some councils) | £0-£100/year | Garden waste collection is a paid service in many council areas |
| Restrictive covenants compliance | Varies | Some developments restrict satellite dishes, external modifications, commercial vehicle parking |
| Key replacement | £50-£200 | Modern multi-point locking systems use specific keys. Replacement costs more than a standard key cut |
Government Schemes That Reduce Costs
Available Schemes
| Scheme | How It Reduces Costs | Eligibility |
|---|---|---|
| Lifetime ISA (LISA) | Government adds 25% bonus on savings up to £4,000/year (maximum £1,000/year bonus) towards first home purchase | Aged 18-39 to open, property up to £450,000, first-time buyers only |
| First Homes scheme | 30-50% discount on new build homes, retained on future sales | First-time buyers (or qualifying military), household income under £80,000 (£90,000 in London), local connection criteria may apply |
| Shared Ownership | Buy 25-75% of the property, pay rent on the remainder. Lower deposit needed | Household income under £80,000 (£90,000 in London), first-time buyers or qualifying groups |
| Deposit Unlock | Allows 5% deposit on new builds (some lenders normally require 10-15%) | Available on participating developments from registered developers |
| Forces Help to Buy | Interest-free loan up to £25,000 for serving military personnel | Regular Armed Forces personnel with at least 6 months service |
| First-time buyer stamp duty relief | No SDLT up to £300,000, 5% on £300,001-£500,000 | First-time buyers purchasing properties up to £500,000 |
Note: Help to Buy (England) closed to new applications in 2022 and the final completions were in March 2023. It is no longer available for new purchases.
For detailed coverage of all government schemes, eligibility requirements, and how they affect your mortgage, see our new build mortgages guide.
Creating Your Moving Budget: Worked Examples
Example 1: First-Time Buyer — £275,000 New Build House
| Cost | Amount |
|---|---|
| Deposit (10%) | £27,500 |
| Stamp Duty (FTB — within £300k nil-rate band) | £0 |
| Solicitor fees + disbursements | £1,800 |
| Mortgage arrangement fee | £999 |
| Buildings and contents insurance (first year) | £350 |
| Removal company (local, 2-bed rental) | £500 |
| Window coverings (blinds) | £600 |
| Light fittings | £150 |
| White goods (fridge/freezer, washing machine) | £700 |
| Essential furniture | £3,000 |
| Garden basics | £200 |
| Mail redirection | £36 |
| First month council tax | £160 |
| Total (excluding deposit) | £8,495 |
| Total including deposit | £35,995 |
Example 2: Home Mover — £400,000 New Build Detached
| Cost | Amount |
|---|---|
| Deposit (15%) | £60,000 |
| Stamp Duty (home mover) | £10,000 |
| Solicitor fees + disbursements | £2,200 |
| Mortgage arrangement fee | £1,499 |
| Buildings and contents insurance (first year) | £450 |
| Removal company (long distance, 4-bed) | £2,000 |
| Storage (1 month overlap) | £200 |
| Window coverings | £1,500 |
| Light fittings | £400 |
| Additional furniture for larger home | £2,000 |
| Garden landscaping (basics) | £800 |
| Snagging inspector | £400 |
| Mail redirection | £69 |
| First month council tax | £250 |
| Total (excluding deposit) | £21,768 |
| Total including deposit | £81,768 |
Monthly Ongoing Costs After Moving In
Do not forget that your monthly expenditure increases once you own a home.
Typical Monthly Costs for a New Build
| Cost | Typical Monthly Range | Notes |
|---|---|---|
| Mortgage payment | £800-£2,500 | Depends on loan amount, rate, and term |
| Council tax | £100-£350 | Varies by band and local authority |
| Gas and electricity | £100-£250 | New builds are energy efficient — typically lower than older homes |
| Water | £30-£60 | Metered or unmetered depending on area |
| Broadband | £25-£55 | Most new builds have fibre connectivity |
| Home insurance (buildings + contents) | £25-£60 | Lower for new builds due to modern construction standards |
| Service charges (if leasehold/managed) | £100-£400 | Apartments and managed estates only |
| Maintenance budget | £20-£50 | Set aside for repairs and maintenance (1% of property value annually) |
| Typical total (excluding service charges) | £1,100-£3,325 |
For detailed guidance on how lenders assess your affordability for these ongoing costs, see our mortgage affordability guide.
Frequently Asked Questions
How much cash do I need beyond my deposit?
As a rule of thumb, budget an additional £5,000-£15,000 beyond your deposit for a typical new build purchase. The exact amount depends on stamp duty, legal fees, moving costs, and how much furnishing you need. First-time buyers moving from furnished rentals into their first home should budget towards the higher end.
Can I negotiate the purchase price of a new build?
Yes, but developers are often more willing to offer incentives (flooring, legal fees, stamp duty contribution) rather than reduce the headline price. A lower price reduces comparable values for neighbouring plots and can create issues with mortgage valuations. Try asking for both and see what the developer offers.
Is it cheaper to buy a new build than a second-hand home?
New builds typically cost 10-20% more per square foot than equivalent second-hand homes. However, you save on immediate repair and renovation costs, energy bills are lower (modern insulation and heating), and you get a warranty. The total cost of ownership over the first 5-10 years can be comparable.
Do I need a survey on a new build?
A traditional survey (homebuyer report or full structural) is generally unnecessary for a brand-new property because it is built to current Building Regulations. However, a professional snagging inspection (£300-£600) is highly recommended and often finds 50-150+ defects. This is different from a survey — it focuses on finish quality rather than structural condition.
When should I start saving for moving costs?
As early as possible. If you are reserving an off-plan property, you may have 6-18 months before completion — use this time to build your moving fund. A Lifetime ISA is valuable for first-time buyers (25% government bonus). For immediate purchases, ensure you have at least your deposit plus £5,000 available.
What is the cheapest day to move?
Tuesday to Thursday are typically the cheapest days for removal companies. Friday is the most popular and therefore most expensive. If your completion date is flexible, choosing a mid-week day can save 20-30% on removal costs. However, your completion date depends on your solicitor, the developer, and the lender — you may not have full control.