Buying costs
New-build reservation fees and buying costs explained
The advertised price and deposit do not describe the complete cash requirement. Build a separate cost list before reservation so fees and moving costs do not quietly reduce the deposit or buffer.
01 · What to check
The reservation fee
A reservation fee is paid under written terms to hold a particular home for a stated period. Ask when it is refundable, whether any part is deducted from the purchase price and what deadline applies for exchange.
02 · What to check
Professional and finance costs
Obtain written quotes where possible and check whether VAT and third-party costs are included.
- Solicitor or licensed conveyancer, searches and registration.
- Mortgage arrangement, valuation or broker fees where applicable.
- Independent survey or snagging inspection.
- Bank transfer, currency or identity-verification costs where relevant.
03 · What to check
Stamp duty
Stamp Duty Land Tax applies in England and Northern Ireland under progressive residential bands. First-time buyer relief, additional-property rates and a non-UK resident surcharge may change the estimate. Confirm the final position with HMRC, your solicitor or a tax adviser.
04 · What to check
Costs tied to the exact home
Ask whether parking, storage, flooring, appliances or upgrades are included. For leasehold homes, request the current service-charge budget and ground-rent terms. Houses can also have an estate charge for shared areas.
05 · What to check
Moving and the first month
Allow for removals, storage, temporary accommodation, insurance, council tax, utilities, broadband, window coverings, furniture and an emergency buffer. Completion timing can change, so avoid making irreversible moving arrangements too early.
Check the official guidance
Property, tax and legal rules can change. Check the latest official information and speak with a qualified professional before making a financial commitment.
