Published: 24/01/2025 By Cavender Estate Agent
Selling a house in the UK can be a complicated process, especially for first time sellers looking to turn a profit in the current economy. However, getting a basic understanding of the costs from a professional will always be the best way to move forward. This can be overwhelming for many, so it is crucial to manage your expectations by budgeting based on realistic projections. This guide is here to provide you with a comprehensive breakdown of all the potential expenses involved, helping homeowners make better decisions when seeking to make a profit, when weighed against the losses.Key Costs of Selling a House in the UK
Energy Performance Certificate (EPC)
An Energy Performance Certificate (EPC) is a legal requirement when selling a property in the UK. It provides a rating of the property’s energy efficiency, from A (most efficient) to G (least efficient), and offers recommendations for improving energy performance.- Cost Range: £35–£150+VAT.
- Validity: 10 years.
- How to Obtain: Can be sourced directly from accredited domestic energy assessors or arranged through estate agents.
- Potential Penalties: Sellers without a valid EPC face fines of up to £5,000.
Estate Agent Fees
Estate agent fees are typically the largest expense when selling a house. Fees depend on whether you opt for a traditional high street agent or an online/hybrid service.Type of Agent | Fee Structure | Typical Cost |
High Street (Sole Agency) | Percentage-based (0.75%–2.5%+VAT) | ~1%–1.5%+VAT (~1.42% incl. VAT) |
High Street (Multi-Agency) | Higher percentage (2%–3%+VAT) | ~3%+VAT |
Online/Hybrid Agents | Fixed fees | £600–£1,500 incl. VAT |
Key Considerations:
- High street agents often secure better sale prices but charge higher fees.
- Online agents may appear cheaper but often require upfront payments regardless of sale success.
- Multi-agency agreements cost more but can lead to faster sales by broadening reach.
Conveyancing Fees
Conveyancing involves the legal transfer of property ownership. Costs depend on the complexity of the sale and the property type (freehold or leasehold).Property Type | Typical Cost |
Freehold, no mortgage | £575 incl. VAT |
Freehold, with mortgage | £612 incl. VAT |
Leasehold, no mortgage | £768 incl. VAT |
Leasehold, with mortgage | £805 incl. VAT |
Key Tips:
- Fixed-fee conveyancers provide predictability in costs.
- Leasehold properties require additional legal work, leading to higher fees.
- Avoid basing decisions solely on the lowest quote; quality of service matters.
Removal Costs
Moving belongings to a new property incurs removal costs, which vary depending on factors such as the volume of possessions, distance, and whether professional packing services are used.Service Type | Cost Range |
Professional Removals | £420–£1,800+VAT |
DIY (Van Hire + Fuel) | £200–£500+VAT |
Storage (if required) | Additional £100+£200+VAT |
Important Considerations:
- Check if removal companies provide insurance for goods in transit.
- DIY moving can reduce costs but requires significant effort and planning.
Additional Costs to Consider
Preparing the Property for Sale
Investing in minor repairs and redecorating can make your property more appealing to buyers and potentially increase the sale price.Preparation Type | Typical Cost |
Cleaning | £0–£150 |
Minor Repairs | £50–£2,000 |
Redecoration | £50–£5,000 |
Tips for Sellers:
- Prioritise fixing visible defects such as damp patches or broken fixtures.
- Fresh paint in neutral colours often provides good returns.
- Full-scale renovations (e.g., kitchens or bathrooms) are generally not cost-effective unless essential.
Mortgage Exit Fees and Early Repayment Charges (ERCs)
Sellers with an outstanding mortgage may face additional fees:Mortgage Exit Administration Fee (MEAF): £50–£300.
Early Repayment Charge (ERC): 1%–5% of the outstanding mortgage balance.
Advice:
- Review your mortgage agreement for these terms.
- If charges seem excessive, consult the Financial Ombudsman Service.
Capital Gains Tax (CGT)
CGT applies to the sale of properties that are not your primary residence (e.g., second homes or rental properties).Private Residence Relief: Exempts primary residences.
Liability Calculation: Based on property value increase during ownership, minus allowable deductions (e.g., renovation costs, estate agent fees).
Action Point: Consult a tax advisor for precise calculations and strategies to minimise liability.
Home Report (Scotland Only)
Sellers in Scotland must provide a Home Report, which includes:- A property valuation.
- An energy efficiency report.
- A property questionnaire.
Other Potential Costs
Staging Your Home
Home staging can significantly enhance the property’s appeal to potential buyers, especially in competitive markets. This involves professionally styling and furnishing the property to make it more attractive.Service Type | Typical Cost |
Full-Service Staging | £300–£2,000 |
DIY Staging (Furniture Hire) | £100–£500 |
Photography for Listings | £50–£200 |
Insurance Costs During Sale
During the sale process, it’s essential to ensure the property remains insured until ownership is legally transferred.- Typical Cost: £10–£50 per month.
- Includes coverage for damage, liability, and vacant property risks.
- Check with your current insurer if additional cover is needed during the sale period.
Sample Cost Breakdown for Selling a £250,000 Property
Expense | Cost |
EPC | £75+VAT |
Estate Agent Fees (1.42% incl. VAT) | £3,550 |
Conveyancing Fees | £650 incl. VAT |
Removal Costs | £700+VAT |
Staging Costs | £500 |
Insurance Costs | £100 |
Total Estimated Cost | £5,575+VAT |