The cost of selling a home in the UK will vary depending on the value of your property, the complexity of the legal work and how far you are planning to move, so there is no simple answer. However, if you are thinking about selling your home and you want a ball-park figure to aim for, you can expect to pay between £4,000 and £10,000 to cover the cost of selling a house in the UK.
Working on the average price of a property in the UK, and the average charges of estate agents and solicitors, the HomeOwners Alliance estimates that the average cost of selling a home is £4,910.
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Breakdown of cost when selling a house in the UK
The cost of selling a house in the UK includes a number of different factors. You may be able to negotiate the price of many of these factors, and you should always shop around to get the best deal.
The main costs of a house sale will be estate agents’ fees, conveyancing costs and obtaining an Energy Performance Certificate. However there are also a number of extra costs of selling a home that need to be factored into your calculations.
Estate Agent’s Costs – approx. £3,500 – by far the largest cost will be the cost of your estate agent. While some agents work on a fixed fee basis, most operate on a percentage commission. This ranges from around 1% to 3% or more, with VAT added on top. For the average UK home, costing £298,000 the estate agents’ fees will be:
1% + VAT (1.2%) = £3,576
1.5% + VAT (1.8%) = £5,364
2% + VAT (2.4%) = £7,152
3% + VAT (3.6%) = £10,728
It’s worth bearing in mind that the cheapest estate agent will not necessarily be your best choice. You get what you pay for with an estate agent, and a good agent may be worth paying extra for if they can achieve a quicker sale at a higher price.
Most agents work on a no sale, no fee basis, but some will still charge you for ID checks, photography and brochures, so always make sure you know what you’re getting for your money and when you will be expected to pay for any extras.
Conveyancing Costs – approx. £600 – £1000 – your next biggest cost of selling a home will be your legal fees. These will vary according to the price of your home and the complexity of the work required, and they usually range from around £600 to £1,000. This is the charge for your solicitor’s time and doesn’t include external services, such as money laundering and identity checks. These are called disbursements.
While your main legal fees will normally be paid from the proceeds of the sale, disbursements incurred along the way will need to be paid separately as work is done, so you need to plan ahead for this.
You may also have to pay additional fees for arranging to clear your mortgage, wire transfer of funds, a copy of the title deeds etc. If your property is leasehold, this will add an extra cost of £200-£300 to your legal fees.
Once again, you will get what you pay for when it comes to legal services. An online conveyancing company may seem cheaper, but they rarely provide the same service, or speed, as your local firm of solicitors.
Energy Performance Certificate – approx. £60 – £120 – It is a legal requirement to have a valid Energy Performance Certificate to sell a property in the UK. There are a number of companies that can provide this service in your area and you should shop around to get the best price. Unlike estate agents or solicitors, all EPC companies provide the same service, so look for the cheapest you can find.
An EPC takes 1-2 hours to complete and will cost between £60 and £120. You should receive your certificate within a couple of days, and this will remain valid for ten years from the date of issue.
Mortgage Costs – variable – if you currently have a mortgage on your home, then you’ll need to factor in the cost of paying off that mortgage into the cost of selling your home.
If you’re currently on a special rate or a fixed term deal, then you may be liable for an early repayment charge. This is often set as a percentage of your outstanding mortgage, on a sliding scale, so if you sell early in your deal, it could work out quite expensive. For example, if the early repayment charge is 4%, this will cost you almost £9,500 on the average home price of £298,000 with an 80% mortgage.
You may also have to pay a mortgage exit fee to cover your lender’s admin costs, and as discussed above, your solicitor may charge an extra fee for dealing with your mortgage company.
Capital Gains Tax – only on second homes – if you’re selling your main residence, you won’t have to pay any stamp duty or Capital Gains Tax (CGT) on the sale. However, if you’re selling a second home, or an investment property such as a buy to let home, then you’ll be liable for CGT on any profit you make.
CGT applies only to the profit portion of the proceeds of the sale, and only to profits above the personal threshold of £3,000. CGT is charged at 18% for standard rate taxpayers and 24% for higher rate taxpayers.
Stamp duty is only paid by buyers and not sellers, but if you are buying another property when you sell, then you need to factor this in.
Home Preparation Costs – variable – in addition to the fees and charges that comprise the cost of selling a home in the UK, you also need to think about the costs involved in preparing your home for sale. These costs will depend on the current condition of your property, but few homes will be able to go straight to market without spending at least some money to present them at their best. From decorating and minor DIY jobs, to major repairs and renovations, the cost of preparing your home for market can be considerable, and you need to plan for these costs as part of your moving budget.
If you have the money available, any investment that you make in your home should pay off in an increased sale price. However, it’s not always worth making large investments, such as a new kitchen or bathroom, as these may cost more than you get back when you sell.
Removal Costs – approx. £350 – £1,800 – finally, with a sale secured and the paperwork completed, the final cost of selling a home is the cost of physically moving. Removal costs will depend on the size of your home, the volume and value of your contents and the distance you are moving.
Price comparison website reallymoving.com estimates the cost of removals to be between £334 for a one-bed home moving under 20 miles, to over £1,800 for a four-bed home moving over 100 miles. If you are moving a longer distance, removals will be even more expensive, as the team will need to stay overnight en-route.
Removals are usually cheaper at the start and middle of the week, and more expensive at weekends. Friday is the most popular day to move and so is the most expensive. Booking early may secure a discount, but you may lose any deposit if your move is delayed or falls through.
The cost of selling a house at auction
One way of avoiding some of the cost of selling a property in the UK is to sell your home at auction. This will usually generate a faster sale, in as little as two months, for around 90% of the market value. You don’t need to spend on preparation as most auction buyers will buy your home as is.
However, the savings may not be as high as you expect, as auction fees and commission can often cost as much as estate agents’ fees. You will also have significant legal fees to pay, including preparation of a formal legal pack for the sale. What’s more, unlike no sale, no fee estate agents, you’ll usually have to pay an auction entry fee, which is non-refundable, even if your property fails to sell.
Check out our expert reviews of the UK’s leading auction houses to find the best firm for you and your property.
What about selling your home for cash?
Selling your home for cash to a fast cash house buying company may seem an expensive option at first. Most of these companies will only pay around 80% of the market value. However, there will be no extra cost to sell your home to a cash buyer, so it could be a better deal than it first appears, especially if you don’t have any cash to spare for moving costs.
- No cost to repair or redecorate your home – cash buyers will buy any house in any condition.
- No estate agents’ fees – there is no need for an estate agent to find a buyer
- No solicitors’ costs – most cash house buyers will either pay your legal fees or make a significant contribution
Together these savings can add up to around £10,000 on a typical UK home, offsetting a large chunk of the price reduction you have to accept. Add in the savings on mortgage repayments and running costs, plus late payment fees if you are in arrears, and a fast cash home sale starts to look like a much better deal.
To see what you could get for your home from a fast cash homebuyer, click below for your free, no obligation estimate:
Expert Insight from Kelvin Elliott
Kelvin Elliott, founder and buying director of myhomebuyers.co.uk explains the advantages of selling to a cash home buyer when it comes to the cost of selling a house:
“The cost of selling a house is significant and runs into thousands of pounds. Unfortunately, not all of these costs can be paid out of the proceeds of the sale, and so you need to have substantial savings before you can even consider moving. This is impossible if you’re already struggling financially, leaving you stuck between a rock and a hard place. You can’t afford to stay, but you can’t afford to move either.
“There are no costs involved in selling a house to a cash buyer, because the reputable companies will never charge for their services and most will cover your legal fees too. You don’t even need to spend out to spruce the place up, so it’s a swift, simple and cost-free solution, giving you an easy way out of your problems.”
For a free estimate of what your home could be worth to a cash home buyer, click below. There’s no obligation, but at least you’ll know where you stand.
What does it cost to sell a house in the UK?
The cost will vary due to a number of factors, but the HomeOwners Alliance estimates the average cost of selling a home in the UK to be £4,910. This does not include mortgage redemption costs or home preparation costs.
Do I need savings to pay the cost of selling my house?
Most of the cost of selling a home can be paid for out of the proceeds of the sale, but you may need to pay for preparation of your home and certain fees such as identity checks, photography and legal disbursements during the sale process.
How to cut the cost of selling a house
To cut the cost of selling a house in the UK, you should shop around for all services. Remember, the best value may not always be the cheapest price, especially when it comes to estate agents and legal services.
Is it cheaper to sell a house at auction?
On average, the cost of selling a house at auction will be around the same as the cost of selling a house through an estate agent. You may, however, make savings on preparation costs, as auction buyers will buy as-is.
What does it cost to sell a house to a cash buyer?
It costs nothing to sell a house to a cash buyer, as there are no estate agents to pay and most reputable companies will cover your legal fees. However, you will get less for your home.
Conclusion
The cost of selling a home in the UK is around £5,000, and this is rising all the. Estate agents’ commission is usually based on a percentage of the selling price, so as the value of your home goes up, so does the cost of selling it. Other fees, such as solicitors, EPC charges and removals are also increasing as a result of inflation.
It’s well worth shopping around to get the best possible deal on the cost of selling a home. Remember that the best performing services are generally not the cheapest, however they could well pay for themselves by helping you to achieve a faster sale at a better price.
You can, of course, avoid all of these costs by selling your home to a cash home buyer free of charge.