The UK property market continues its steady recovery in late 2025, with house prices showing modest growth and sales activity increasing. Yet beneath this optimistic surface lies a reality many homeowners overlook. When planning to move, understanding the true cost of selling a house can mean the difference between a successful sale and a financial shock that derails your next purchase.
With speculation mounting about potential stamp duty reforms in the upcoming November Budget and significant changes already scheduled for April 2025, sellers need more clarity than ever about the expenses they’ll face. Industry experts predict continued market stability, but the financial burden of selling remains substantial for most homeowners.
Estate Agent Fees: Your Largest Selling Expense
Estate agent commission represents the most significant selling cost for most vendors, typically ranging from 0.75% to 3% of the sale price plus VAT. On a £350,000 property, this translates to between £3,150 and £12,600 – a considerable sum that varies dramatically based on your choice of agent and location.
High street agents generally charge between 1% and 2%, whilst premium agencies in competitive markets may command higher fees. Online and hybrid agents offer fixed-fee alternatives from £500 to £1,500, though these often require more involvement from sellers. The key lies in understanding what services you’re receiving for your money and negotiating terms that reflect current market conditions.
Comparing Traditional vs Online Agents
Traditional estate agents provide comprehensive services including valuations, viewings, negotiations, and sales progression. Their local expertise and established buyer networks can prove invaluable in challenging markets. Online agents offer cost savings but may require you to conduct viewings yourself and manage more of the sales process independently.
Legal Fees and Conveyancing Costs
Solicitor fees for selling typically range from £500 to £1,500 plus VAT, depending on your property’s value and transaction complexity. These costs cover essential legal work including contract preparation, Land Registry updates, and managing the exchange and completion process.
Additional disbursements can add £200 to £400 to your bill, covering searches, identity checks, and administrative expenses. Properties with leasehold titles, shared ownership arrangements, or complex boundaries often incur higher legal fees due to increased complexity.
Energy Performance Certificates and Home Reports
An Energy Performance Certificate (EPC) is legally required for all property sales, costing between £60 and £120. Your EPC remains valid for ten years, so check whether your existing certificate is still current before ordering a new assessment.
Scotland’s Home Report Requirements
Scottish sellers face additional costs through the mandatory Home Report system, which includes a survey, EPC, and property questionnaire. These comprehensive reports cost between £500 and £800 but provide buyers with detailed property information upfront, potentially speeding up the sales process.
Mortgage Early Repayment Charges
Homeowners with fixed-rate mortgages may face early repayment charges (ERCs) if selling during their initial term. These penalties typically range from 1% to 5% of the outstanding balance, potentially adding thousands to your selling costs. A £200,000 mortgage with a 3% ERC would cost £6,000 to repay early – a significant consideration when timing your sale.
Review your mortgage terms carefully and consider whether waiting until your fixed period ends might prove more economical, particularly if you’re approaching the end of your term.
Capital Gains Tax Considerations
Whilst your main residence usually benefits from Private Residence Relief, second homes and investment properties attract Capital Gains Tax on any profit. Current rates stand at 18% for basic-rate taxpayers and 24% for higher-rate earners on residential property gains.
Calculating Your Net Proceeds
Understanding your true selling costs enables realistic planning for your next purchase. On a typical £350,000 sale, total costs might reach £15,000 to £20,000 when combining agent fees, legal costs, and potential mortgage penalties. Factor these expenses into your calculations early to avoid disappointment when planning your onward move.
With careful planning and professional guidance, you can minimise unnecessary expenses whilst ensuring a smooth, successful sale in today’s evolving market.
