What money do you actually need to buy a house in Leeds? A property expert breaks down the hidden costs and moving fees that you need to be aware of

To make life a little bit easier for first-time-buyers, Mark Manning, managing director of Leeds-based estate agent Manning Stainton, shares his advice on how to budget correctly and avoid expensive surprises when buying a new home.

Purchasing a new property is an exciting time, but it comes with several expenses that you need to budget for. Making sure you have the funds in place to cover these costs helps reduce the stress of buying and will make the whole process much smoother. 

It comes as the Yorkshire Evening Post, along with National World's other City World division titles, have launched Project Peter Pan - a campaign to give a voice to those in their 20s and 30s who might be frozen out of the housing ladder. 

Here’s what you need to budget for when purchasing your next home:  

Stamp duty 

Stamp duty is a tax that you legally have to pay when buying a new home. The tax kicks in on properties valued at £425,000 for first-time buyers, so many manage to avoid this tax. However, if you are buying a home that costs more than this, you will have to pay stamp duty, with the amount being dependent on the value of the property. The tax will always run into the thousands, so use an online calculator to work out exactly how much you’ll need to pay and set it aside. 

Legal fees

A solicitor will look after all the conveyancing for you when you buy a new home. They’ll do all the necessary checks to ensure the property you’re purchasing is sound, sort out all monetary transactions and work out and pay the stamp duty that you owe.  Budget between £1,000 and £2,000 to cover legal fees.   

Surveys 

You don’t legally have to commission a survey, but I’d always recommend paying for one as it will show up any potential issues with your new home and could save you money on costly repairs in the long run. Surveys range from basic home condition reports that usually cost around £500, to full structural assessments that cost from £1,000 up.  

Mortgage and valuation fees

Most mortgage providers charge valuation and mortgage set-up fees, so speak to a reputable mortgage advisor to find the best deals available. Valuation fees usually range from £150 to £250, and set-up fees to take out a mortgage usually start at around £500.

You do have the option to reduce these set-up fees by agreeing to slightly higher monthly payments over the mortgage term, but it’s usually most cost effective to pay them upfront and avoid higher interest rates. 

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Removal fees 

Removal companies charge different amounts depending on how much stuff you have and the type of service you want. If you have a have a fair amount of furniture and goods to move, then budget at least £1,000 to cover removal costs. If you don’t have loads, a cheaper option is to hire a van for a day and move your things yourself. 

Indemnity insurance

Sometimes your solicitor might suggest taking out indemnity insurance, a policy that protects you from potential problems with the property that could cost you money in the future. If, for example, you are buying an extended property and the seller can’t provide a building regulation certificate, then you could take out the insurance to cover any costs involved if your local authority pursues a future claim because you don’t have the certificate.

Home insurance and improvements 

Make sure you take out home insurance before you move into your new property, to ensure you’re covered from the moment you get your keys. It usually starts from around £200 per year depending on the size and type of your house, but can run up to around £600 a year for larger and older properties.

Set aside a little for home improvements too, as even if your new home looks like it’s ready to move into, you’ll usually need to carry out a few minor home improvements to make it feel like yours. If you can, set aside at least £500 to cover initial home improvement costs.

What is Project Peter Pan?

National World's 17 city world division news titles are collaborating on Project Peter Pan: championing the lost generation.

Project Peter Pan - launched as the UK heads toward a general election in 2024 - aims to use our collective local media power online to give a voice to those in their 20s and 30s who have negotiated a pandemic, work hard and are ambitious, yet are lost.

They told our reporters they are frozen out of the housing ladder and stuck in a rental cycle often in substandard accommodation or they are in debt and facing impossible decisions.