HomeBuyingCosts Guide
New-Build Buying Costs in the UK
Written and reviewed by James Whitfield · Updated 2026-02-17 · 6 min read
Checked against 2026/27 HMRC, Revenue Scotland & HM Land Registry rates · Editorial standards · Methodology
Model new-build cashflow with realistic timing assumptions and avoid underestimating completion-stage expenses.
Key takeaways
- New builds are taxed like any home — £2,500 SDLT for a first-time buyer at £350,000, £7,500 for a mover.1
- A reservation fee of £500–£2,000 holds the plot; it's usually credited back at completion.
- Developers impose short exchange deadlines (often 28 days) — line up your solicitor and mortgage first.
- Budget £300–£600 for a snagging inspection and treat optional upgrades as real spend, not decoration.
Buying a new build costs the same in stamp duty as any other home of the same price — a first-time buyer pays £2,500 on a £350,000 new build, a home mover £7,500.1 What's different is everything around the tax: a reservation fee to take the plot off the market, a tight developer exchange deadline, a snagging inspection, and the temptation of pricey upgrades that quietly inflate the bill.
This guide covers the extra costs and quirks specific to buying from a developer, with a full worked example of the cash you need to complete on a £350,000 new build. It's written for buyers going direct to a developer rather than buying a resale home.
Worked examples — home mover typical fees
| Price | England/NI tax | Scotland tax | Wales tax |
|---|---|---|---|
| £300,000 | £5,000 | £4,600 | £4,500 |
| £500,000 | £15,000 | £23,350 | £18,000 |
| £750,000 | £27,500 | £48,350 | £36,750 |
What's genuinely different about buying new
The tax is the same, but the process isn't. You're buying from a developer's legal team working to their timetable, not a chain of ordinary sellers. That brings three things resale buyers rarely meet: a reservation fee, a fixed and often aggressive exchange deadline, and a build that may not be finished when you reserve.
You reserve a specific plot, pay a fee to take it off the market, and then the clock starts. Most developers want you to exchange contracts within about 28 days of reservation. If your mortgage or solicitor isn't ready, you risk losing the reservation fee and the plot. Get a mortgage agreement in principle and instruct a solicitor before you reserve, not after.
Help to Buy has closed to new applicants across all UK nations, so most new-build buyers now fund the purchase with a standard deposit and mortgage. Some developers offer their own incentives — a deposit contribution, stamp duty paid, or upgrades thrown in. Treat these as a discount on the effective price, and check with your lender, because a large developer incentive can affect the valuation and the loan.
Reservation fees, snagging and warranties
The reservation fee is usually £500 to £2,000. It's normally deducted from the purchase price at completion, so you get it back in effect — but read the reservation agreement, because it can be non-refundable if you pull out.
A snagging inspection is the one cost people skip and later regret. An independent snagging surveyor inspects the finished home for defects and unfinished work before you complete, typically for £300 to £600, and commonly finds dozens of items the developer should put right. On a brand-new home this is far more useful than a standard condition survey.
Structural cover comes from a warranty such as NHBC Buildmark, which protects against major structural defects for ten years.3 That's not the same as buildings insurance — you (or your lender) still need a buildings policy in force from completion. The warranty and the snagging list cover different things: one is long-term structural protection, the other is the finish-quality checklist for day one.
What a £350,000 new build actually costs to complete
Here's the cash a first-time buyer needs to complete a £350,000 new build in England, on top of the deposit. The reservation fee is credited back at completion, so it's shown separately rather than added to the total.
| Cost (first-time buyer, £350,000) | Typical amount | Notes |
|---|---|---|
| Stamp duty (SDLT) | £2,500 | First-time buyer; a home mover pays £7,5001 |
| Conveyancing (new-build) | £1,600 | Higher than resale — more developer enquiries |
| Searches & disbursements | £400 | Local authority, drainage, environmental |
| Land Registry fee | £150 | Electronic lodgement, £350,000 band4 |
| Snagging inspection | £450 | Independent pre-completion inspection |
| Mortgage product / booking fee | £1,000 | £0 on fee-free deals, up to £2,000 |
| Buildings insurance (year 1) | £250 | Required from completion |
| Removals | £700 | Local move |
| Total cash to complete (excl. deposit) | £7,050 |
Excludes your deposit and any credited reservation fee. A home mover at the same price pays £5,000 more in SDLT (£7,500 vs £2,500).1 Optional upgrades are extra.
Swap in your own figures as real quotes arrive — the site calculator lets you edit the tax, legal, survey and mortgage fees and see the all-in total update.
Common mistakes new-build buyers make
Reserving before the finances are ready. The 28-day exchange deadline is real, and a delayed mortgage offer can cost you the reservation fee and the plot. Sort the agreement in principle and instruct a solicitor first.
Letting upgrades run away. Flooring, kitchen worktops, wardrobes and landscaping are sold as small monthly-feeling extras but add up to thousands. Decide your upgrade budget before you sit down with the sales team, and treat it as cash spend.
Skipping the snagging inspection. Once you complete, getting the developer back to fix defects is slower and harder. A £450 inspection before completion is leverage you lose the day you get the keys.
Assuming the reservation fee is always refundable. It often isn't if you're the one who withdraws. Read the agreement.
Scotland and Wales
The new-build process is broadly the same across the UK, but the purchase tax differs. In Scotland you pay LBTT rather than SDLT; a £350,000 home attracts £8,350 of LBTT for a standard buyer.5 In Wales you pay LTT — £7,500 on £350,000.6 First-time buyer relief also works differently in each nation, so use the calculator's region setting for an accurate figure.
Wherever you buy, the reservation fee, snagging inspection, warranty and mortgage-fee dynamics are the same. Only the tax line changes.
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Frequently asked questions
Do you pay stamp duty on a new build?+
Yes. New builds are taxed at the same SDLT (or LBTT/LTT) rates as any other home of the same price. On a £350,000 new build a first-time buyer pays £2,500 and a home mover pays £7,500. There is no special new-build rate.1
Is the reservation fee refundable?+
It's usually credited against the purchase price at completion, so in effect you get it back. But if you withdraw from the purchase, the reservation fee is often non-refundable. Always read the reservation agreement before you pay it.
What is a snagging inspection and do I need one?+
It's an independent inspection of the finished home for defects and unfinished work before you complete, typically £300–£600. It's strongly recommended on a new build — it commonly finds dozens of items for the developer to fix, and it's far easier to get them resolved before completion than after.
Does the NHBC warranty replace buildings insurance?+
No. An NHBC Buildmark (or similar) warranty covers major structural defects for ten years. You still need a separate buildings insurance policy in force from completion, which your mortgage lender will require.
Are new-build conveyancing fees higher?+
Usually by £200–£400 versus a resale property, because the solicitor has to review the developer's title, raise and resolve a large volume of enquiries, check the warranty and work to the developer's exchange deadline. You can use your own solicitor rather than the developer's recommended panel firm, and it's usually sensible to do so.
Can I still use Help to Buy on a new build?+
No. The Help to Buy equity loan scheme has closed to new applicants across the UK. Most new-build buyers now use a standard deposit and mortgage, sometimes alongside a developer incentive such as a deposit contribution or paid stamp duty.
Sources & references
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 Current band-by-band residential SDLT rates.
- GOV.UK — SDLT: first-time buyers' relief www.gov.uk/stamp-duty-land-tax/residential-property-rates#first-time-buyers Relief: nil-rate to £300,000, 5% to £500,000, none above £500,000.
- GOV.UK — Buying or selling your home www.gov.uk/buy-sell-your-home Overview of the conveyancing, survey and completion process.
- GOV.UK — HM Land Registry registration services fees www.gov.uk/guidance/hm-land-registry-registration-services-fees Scale 1 registration fees by price band (postal and electronic).
- Revenue Scotland — LBTT residential property revenue.scot/taxes/land-buildings-transaction-tax/residential-property Scottish LBTT rates and first-time buyer relief.
- Welsh Revenue Authority — Land Transaction Tax rates and bands www.gov.wales/land-transaction-tax-rates-and-bands Welsh LTT main and higher residential rates.
Verified against published UK government guidance. See also Methodology and Editorial standards.
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Written and reviewed by James Whitfield and the HomeBuyingCosts editorial team.
Stamp duty, LBTT and LTT figures are checked against GOV.UK, Revenue Scotland and GOV.WALES. We explain every cost of buying a home in plain English, with worked examples. Editorial standards · About us