The hidden costs of buying a home in Northern Ireland in 2025

24.07.25

Buying a home these days is no easy feat. Whether you’re a first-time buyer or moving up the property ladder, the market has been changing so rapidly that it can be hard to know how much you need to save for your next property purchase.

In this article, Ian Creighton, Partner and Head of Residential Property, shares his insights into the key costs associated with buying a property.

How much do I need for a deposit?

When saving for a house, most people start with the deposit. Traditionally, lenders have requested a minimum of 10% of the property’s purchase price as the deposit for a mortgage, however, increasingly more lenders are now accepting a 5% deposit.

If you’re eligible, there are also support schemes like the Lifetime ISA – which gives you a 25% government bonus on your savings that can be used to enhance a deposit. Alternatively, many first-time buyers opt to buy via Co-Ownership, which offers the opportunity to pay a lower initial deposit to part-own a property, with the option to buy the remaining equity share at a later date.

What is stamp duty and how much should I expect to pay?

From 1 April 2025, the UK Government made changes to Stamp Duty Land Tax (SDLT), impacting different categories of buyers – including all homebuyers in Northern Ireland.

To put it into context: before these changes, first-time buyers could purchase a home worth up to £425,000 without paying any tax. For everyone else already on the ladder, the zero-rate band sat at £250,000.

Under the new rules, these thresholds have been reduced significantly. First-time buyers now only benefit from tax relief on homes up to £300,000, and the zero-rate band for all other residential purchases has been halved to just £125,000.

This means that a much larger proportion of buyers will now face SDLT costs when they previously wouldn’t have. In fact, the percentage of first-time buyers now liable for Stamp Duty has jumped from 8.4% to 32%.

Here’s a quick breakdown of what buyers in Northern Ireland can expect to pay:

●   First-time buyers – no tax on properties up to £300,000

For example, if you purchased a property as a first-time buyer at £200,000, no SDLT would be payable.

●   Other buyers – no tax on properties up to £125,000, then:
• 2% on £125,001–£250,000
• 5% on £250,001–£925,000

For example, if you purchased a property at £200,000, the SDLT payable would be £1,500. For a property purchased at £300,000, the SDLT payable would be £5,000.

●   Additional properties – add a 3% surcharge to each band

If you purchased a second property at £200,000, the SDLT bill for this property would be £11,500, as an additional 3% would be applied to 2% lower band.

How much are legal fees?

Conveyancing fees will vary depending on the price of the property and your particular circumstances of how you are funding the purchase e.g. buying with a mortgage, Help to Buy or Lifetime ISAs, gifts of money, Shared Equity Scheme etc.

Our tips on choosing a solicitor to handle your purchase

Purchasing a property can be a stressful experience but the right solicitor will help make it as easy as possible. Finding a solicitor that works well with you and for you is therefore crucial. Here are some tips for choosing a solicitor:

Try to get personal recommendations from people who have used a conveyancing solicitor recently.

Look online for reviews or comments about the potential solicitors you might use.

Review the website of the solicitor firm to see if they specialise in conveyancing.

Contact the solicitor to make sure they are on all the mortgage lender panels. This is important as your solicitor will also act for your mortgage lender. Not all solicitors are on all mortgage lender panels, so you should find out that your solicitor can act for your lender before you instruct them.

Get a quote early on in your home-buying process so you know exactly what to budget for.

Always make sure to get the quote in writing,

Do I need to pay for surveys and valuations?

If you need a mortgage, you can’t complete the home-buying process without agreeing to at least a basic valuation.

Before you can finalise your purchase, your lender will need to carry out a valuation on the property. Some lenders do not charge for a survey, but others may charge a fee of several hundred pounds.

Depending on the property and your own peace of mind, you might also choose to arrange a Homebuyer’s Report (around £400-£1000) or, for older or structurally complex properties, a full structural survey (up to around £1,500).

What other hidden costs are there?

Let us break down a few more costs that you may or may not have expected:

Mortgage fees

Some lenders may charge an initial set-up or arrangement fee for a mortgage, which can range from £0-2,000. In addition, some (though not all) mortgage brokers may also charge a fee.

Buildings insurance

When getting a mortgage, many people may not be aware that it is mandatory to take out buildings insurance on your property. Costs depend on the property type and condition, however you can expect to pay around £200-300 annually. Many buyers also opt to take out contents insurance, life insurance and income protection insurance; the costs for each type of insurance can vary depending on the level of cover.

Moving costs

It is advisable to keep some money aside for moving costs, such as funds for a removal company or storage units if you are in between properties. Moving costs can amount to anything from a few hundred pounds to over £1000.

Why choose Wilson Nesbitt for your property journey

At Wilson Nesbitt, we pride ourselves on delivering a high-quality service with our clients’ best interests at heart. We understand that buying a home is one of the most stressful moments in your life, so we aim to make the process as smooth as possible.

We are also one of the few law firms in NI to offer a free case-tracking app that allows you to check the progress of your property transaction in real time.

For more information on how we can help, please get in touch.