Quick answer
A cash buyer pays the same stamp duty as anyone else: £5,000 on a £300,000 home for a home mover, or £0 for a first-time buyer.1 Add the conveyancing fee (the average 2026 quote at that price is £1,270) plus disbursements of up to £700, which include the searches and the Land Registry fee (£150 online at that price),2 and an optional survey of about £500 to £900. There are no arrangement or valuation fees. Your conveyancer must check where the money came from, so have bank statements ready.3
Key takeaways
- Stamp duty is charged on the price, however you pay for it.1
- No arrangement, booking or lender valuation fees.
- Legal fees and searches still apply; searches are optional for cash buyers but worth doing.
- Conveyancers must check your source of funds under the Money Laundering Regulations.34
- A Lifetime ISA can only be used towards a first home bought with a mortgage.5
Cash buyers are popular with sellers because there is no mortgage offer to wait for and no lender valuation to fall short. The costs are lower too, but only by the lender's fees: the tax and most of the legal work are the same.
Stamp duty figures are for England and Northern Ireland at the rates from 1 April 2025. Legal, search and survey figures are typical ranges, not quotes.
What does buying a house with cash cost?
For a £300,000 home bought by a home mover in England:
| Cost | Cash buyer | Mortgage buyer |
|---|---|---|
| Stamp duty (home mover) | £5,000 | £5,000 |
| Conveyancing fee (average 2026 quote at this price) plus disbursements | £1,270 plus up to £700 | £1,270 plus up to £700 |
| Land Registry fee (included above) | £150 online | £150 online |
| Survey (optional but recommended) | £500 to £900 | £500 to £900 |
| Mortgage arrangement, booking and valuation fees | £0 | Up to about £2,050 |
| Total on top of the price | £6,270 to £7,870 | £6,270 to £9,920 |
Conveyancing: Compare My Move average 2026 freehold quote for £200,001 to £300,000; disbursements: HomeOwners Alliance (up to £700 or more); survey: HomeOwners Alliance Level 1 to Level 3 at £250,000 to £349,999; mortgage fees: HomeOwners Alliance upper figures. Land Registry Scale 1 fee for £200,001–£500,000 is £150 online or £330 by post.2
A first-time buyer pays no stamp duty at £300,000, so the cash cost drops to about £1,270 to £2,870.1 Removal costs are extra in both cases.
Worked example: downsizing with cash before your sale completes
A couple sell their family home for £450,000 and buy a £300,000 bungalow with cash. If both sales complete on the same day, stamp duty on the bungalow is £5,000.1
If they buy the bungalow first, while still owning the old house at the end of the day, the 5% higher rate applies to the whole price: £20,000 instead of £5,000.1 They can reclaim the extra £15,000 from HMRC if they sell the old home, which was their main residence, within 3 years.7 Cash buyers are often in a position to buy first, so check the timing with your conveyancer before you exchange.
What checks will a cash buyer face?
Your conveyancer must carry out customer due diligence, including scrutiny of the source of funds where necessary.4 The SRA says solicitors must check the source of any funds involved in legal transactions.3 For a cash buyer that usually means bank statements showing how the money built up: a house sale, savings, an inheritance or investments. Money that arrives from someone else, such as a gift from a parent, means checks on that person too.
Estate agents often ask for proof of funds before putting your offer forward. Have a recent statement ready, and expect the conveyancer to ask for more detail later.
Should a cash buyer still get a survey and searches?
Without a mortgage, nobody else insists on a valuation or searches, which makes them easy to skip. That is the main risk of buying with cash: the lender's checks protect the lender, but they also catch problems you would want to know about. A survey checks the condition of the building, and local authority, drainage and environmental searches check the records for the exact address.
Before you pay for those, the free checks will tell you whether they are worth it: what the house last sold for, its flood risk, the EPC and whether it is listed.
Do cash buyers need buildings insurance?
There is no legal requirement to have buildings insurance on a house you own outright; mortgage borrowers have to have it under their mortgage contract.6 If you are buying a leasehold flat, leaseholders are usually required to have buildings insurance, so check what the lease says.6 In practice, arrange cover from exchange or completion, as your conveyancer advises, because an uninsured loss falls on you.
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Frequently asked questions
Do cash buyers pay stamp duty?+
Yes. Stamp duty is charged on the price, whether or not you have a mortgage. A home mover pays £5,000 at £300,000; a first-time buyer pays nothing up to £300,000.
How much cheaper is it to buy with cash?+
You save the lender's fees, up to about £2,050 including the arrangement, booking and valuation fees (HomeOwners Alliance). Stamp duty, legal fees and searches stay the same.
What proof of funds does a cash buyer need?+
A recent bank or investment statement for the agent, and for the conveyancer, evidence of where the money came from, such as a sale completion statement, savings history or a gift letter with the giver's records.
Can I use a Lifetime ISA if I buy with cash?+
No. A Lifetime ISA can only be used towards a first home bought with a mortgage, through a conveyancer.
Is buildings insurance compulsory for cash buyers?+
No, it is not a legal requirement, but you carry the full risk of damage without it.
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OfficialThe figures and rules on this page are drawn from the official UK government sources below. Rates are the confirmed 2026/27 amounts. Each link opens the relevant official page in a new tab.
- GOV.UK: Stamp Duty Land Tax residential property rates www.gov.uk/stamp-duty-land-tax/residential-property-rates 0% to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m, 12% above, from 1 April 2025; first-time buyer relief to £500,000.
- GOV.UK: HM Land Registry registration services fees www.gov.uk/guidance/hm-land-registry-registration-services-fees Scale 1 fees from 9 December 2024: £150 online for £200,001–£500,000.
- Solicitors Regulation Authority: Anti-money laundering checks www.sra.org.uk/consumers/choosing/aml/ Solicitors must check the source of funds, including money gifted by a parent.
- legislation.gov.uk: Money Laundering Regulations 2017, regulation 28 www.legislation.gov.uk/uksi/2017/692/regulation/28 Customer due diligence, including the source of funds where necessary.
- GOV.UK: Lifetime ISA www.gov.uk/lifetime-isa First home must be bought with a mortgage, through a conveyancer.
- MoneyHelper: What insurance do I need when buying a house? www.moneyhelper.org.uk/en/blog/insurance/what-insurance-do-I-need-when-buying-a-house Buildings insurance is not a legal requirement; mortgage lenders require it.
- GOV.UK: SDLT when buying an additional residential property www.gov.uk/guidance/stamp-duty-land-tax-buying-an-additional-residential-property Higher rates refund if the previous main residence is sold within 3 years.
Verified against published UK government guidance. See also Methodology and Editorial standards.