The Costs of Selling a House

At Towerstone, we provide specialist property accountancy services for homeowners, landlords, and property investors. We have written this article to explain typical selling costs and fees, helping you make informed decisions.

Selling a house is often talked about in terms of the sale price, but far less attention is paid to the costs involved in getting from “for sale” to “sale completed”. Many sellers are surprised at how much is deducted from the final proceeds once fees, charges, and obligations are taken into account.

The reality is that selling a house in the UK is not free, but the costs are usually predictable if you understand what they are upfront. Some costs are unavoidable, some are optional, and others depend heavily on how you choose to sell and your personal circumstances.

In this guide I will explain in detail how much it typically costs to sell a house in the UK, what the main expenses are, which ones you can control, and how to budget properly so there are no nasty surprises on completion.

The Big Picture First

As a rough guide, most sellers spend between 1.5 percent and 3 percent of the sale price on selling costs, although this can be lower or higher depending on choices made.

For example:

On a £200,000 sale, total costs might be £3,000 to £5,000

On a £300,000 sale, costs might be £4,500 to £7,500

On a £500,000 sale, costs might be £7,500 to £15,000

These figures include professional fees but do not include mortgage repayment or capital gains tax.

Estate Agent Fees

For most sellers, estate agent fees are the largest single cost.

Typical Estate Agent Fees

Estate agents usually charge a percentage of the final sale price plus VAT.

In the UK, typical fees are:

Around 1 percent to 1.5 percent plus VAT for sole agency

Around 2 percent or more plus VAT for multi agency

Some online or hybrid agents charge fixed fees instead, often payable upfront.

Example Estate Agent Cost

If you sell a house for £300,000 and the agent charges 1.25 percent plus VAT:

Fee before VAT: £3,750

VAT at 20 percent: £750

Total agent fee: £4,500

This fee is usually deducted from the sale proceeds on completion.

Can You Negotiate Estate Agent Fees?

Yes, in many cases you can.

Fees are not fixed by law, and agents often have flexibility, especially if:

The property is easy to sell

The market is strong

You are selling a higher value home

You are also buying through the same agent

Always confirm whether the fee is inclusive or exclusive of VAT.

Solicitor or Conveyancer Fees

You will need a solicitor or licensed conveyancer to handle the legal side of the sale.

Typical Legal Fees

Legal fees for selling a house usually range from:

£500 to £1,500 plus VAT

The exact cost depends on:

Whether the property is freehold or leasehold

The complexity of the title

Whether there are complications such as shared ownership or help to buy

Leasehold sales are usually more expensive due to additional paperwork.

What Legal Fees Cover

Your legal fees usually include:

Drafting the contract

Dealing with enquiries

Liaising with your mortgage lender

Transferring ownership at completion

Disbursements such as bank transfer fees may be charged separately.

Mortgage Redemption Costs

If you have a mortgage, it will be repaid when you sell.

This is not a “selling cost” in the usual sense, but there may be charges associated with redeeming the mortgage.

Early Repayment Charges

If you are within a fixed or discounted mortgage period, your lender may charge an early repayment charge.

These can be:

A few hundred pounds

Several thousand pounds

A percentage of the outstanding balance

This is one of the most commonly overlooked costs.

Administration Fees

Even if there is no early repayment charge, lenders often charge:

A mortgage exit fee

A deeds release or admin fee

These are usually £50 to £300.

Energy Performance Certificate (EPC)

By law, you must have a valid Energy Performance Certificate before marketing your property.

EPC Costs

If you do not already have a valid EPC, the cost is usually:

£60 to £120

EPCs are valid for 10 years, so you may already have one.

Leasehold Specific Costs

If you are selling a leasehold property, there are often additional costs.

These commonly include:

Management information pack fees

Freeholder or managing agent fees

Notice of transfer fees

These costs can range from a few hundred pounds to over £1,000 depending on the managing agent.

This is one of the reasons leasehold sales are often more expensive.

Removal and Moving Costs

Strictly speaking, removal costs are not part of selling the house, but they are part of the overall transaction and should be budgeted for.

Typical removal costs range from:

£300 to £1,000 for a local move

More for long distance or complex moves

Some people save money by using vans or moving themselves, but this depends on circumstances.

Repairs and Presentation Costs

Many sellers spend money before the sale to improve presentation or address issues.

These costs vary widely but may include:

Decorating

Minor repairs

Garden tidy up

Professional cleaning

Staging or photography

While optional, these costs can make a significant difference to sale price and speed.

Capital Gains Tax (If Applicable)

Most people selling their main home do not pay capital gains tax due to Private Residence Relief.

However, CGT may apply if:

The property was rented out

It was not your main home for the entire period

It is an investment or second home

CGT is not deducted automatically on sale and must be planned for separately.

This can be one of the largest costs for landlords or second home owners.

Help to Buy or Equity Loan Repayment

If your property was purchased using Help to Buy or a similar scheme, you may need to repay a loan or equity share on sale.

This repayment is usually:

A percentage of the current market value

Plus valuation and administration costs

This can significantly reduce net proceeds and should be checked early.

Online and Fixed Fee Agents

Some sellers use online or hybrid agents to reduce costs.

These may charge:

Fixed fees of £500 to £2,000

Often payable upfront

Sometimes with limited service

While cheaper, you should understand what is included and what is not. Lower cost does not always mean better value.

Can You Sell Without an Estate Agent?

Yes, but it is not common.

Selling privately can save estate agent fees, but it requires:

Marketing the property yourself

Handling viewings

Negotiating directly with buyers

Managing progression

Most sellers decide the saving is not worth the extra work and risk.

Timing and Market Conditions Affect Costs

In a strong market:

Properties sell faster

You may negotiate lower fees

Less money may be needed on repairs

In a weak market:

Properties take longer to sell

You may need to reduce price

Extra marketing or presentation costs may arise

Selling costs are not just about fees, they are also about opportunity and time.

What Sellers Often Forget to Budget For

Commonly forgotten costs include:

VAT on estate agent fees

Mortgage early repayment charges

Leasehold information pack fees

Bank transfer fees

Removal costs

These can add up quickly if not planned for.

How Much Will I Actually Receive After Selling?

To estimate your net proceeds, you should:

Start with the agreed sale price

Deduct estate agent fees

Deduct legal fees and disbursements

Deduct mortgage balance and charges

Deduct any scheme repayments

The remaining amount is what you will receive.

Your solicitor usually provides a completion statement showing this clearly.

My Professional View

In my professional experience, the biggest problem sellers face is not the cost of selling, but underestimating it.

Most costs are reasonable and justified, but they need to be understood upfront. When sellers budget properly, there are far fewer shocks at completion and better decisions can be made about pricing, timing, and next steps.

Trying to cut every cost often leads to false economies, while spending sensibly on the right areas can increase the final sale price enough to more than cover the expense.

Final Thoughts

So, how much does it cost to sell a house in the UK?

For most people, the total cost sits somewhere between 1.5 percent and 3 percent of the sale price, plus any mortgage or tax related obligations. Estate agent fees and legal costs make up the bulk of this, with other charges depending on your situation.

The key is not just knowing the headline costs, but understanding how they affect what you actually walk away with. Planning ahead, asking the right questions, and checking fees early makes the entire selling process smoother and far less stressful.

If you would like to explore related property guidance, you may find how much is bedroom tax and how much do estate agents charge to sell a house useful. For broader property guidance, visit our property hub.