UK stamp duty and the home-buying process, step by step
From offer to completion in England: what Stamp Duty Land Tax costs, how the conveyancing timeline works and where purchases tend to stall.
March 2, 2026 · 3 min read
Buying a home in England and Wales is slower than in many countries because the offer you make is not legally binding. Either side can withdraw until contracts are exchanged, which typically happens eight to twelve weeks after the offer is accepted. Understanding each step, and the tax due at the end, takes much of the anxiety out of the process.
This guide covers the standard sequence for a purchase through an estate agent, the rates of Stamp Duty Land Tax (SDLT) that apply in 2026 and the points where we most often see sales delayed. Scotland and Northern Ireland have different systems, and rates change, so always confirm current figures with your conveyancer.
Stamp Duty Land Tax in practice
SDLT is charged in bands, like income tax, so you pay each rate only on the slice of the price that falls within its band. For a standard purchase of a main residence after April 2025, the first £125,000 is taxed at nil, the next £125,000 at 2%, the portion from £250,000 to £925,000 at 5%, from £925,000 to £1.5 million at 10% and anything above that at 12%. A £500,000 home therefore carries £15,000 of tax.
First-time buyers pay nothing on the first £300,000 and 5% on the portion between £300,000 and £500,000, but lose the relief entirely if the price exceeds £500,000. Buyers of additional homes pay a surcharge of five percentage points on every band, and non-UK residents pay a further two percentage points. Your conveyancer files the return and pays HMRC on your behalf within 14 days of completion.
From offer to exchange
Once your offer is accepted, the property is marked as under offer, but nothing is fixed. Instruct a solicitor or licensed conveyancer immediately and send them identity documents and proof of funds, because anti-money-laundering checks take days. Your lender will instruct a valuation, and you should commission a survey. A Level 2 survey suits most modern or well-maintained homes; a Level 3 is worth the extra cost for a period property or one with visible movement or damp.
Your solicitor will review the contract pack, ask enquiries of the seller’s solicitor and run local authority, drainage and environmental searches. For leasehold flats, they will also examine the lease, service charge accounts and any planned major works. Do not rush this stage: it is where long leases, unusual ground rent terms or a management company in difficulty come to light.
- Offer accepted: instruct your solicitor and complete ID checks
- Mortgage application submitted and valuation booked
- Survey carried out and reviewed
- Searches returned and enquiries answered
- Mortgage offer issued, deposit funds ready
- Exchange of contracts, then completion on the agreed date
Exchange and completion
Exchange of contracts is the moment the sale becomes legally binding. You will usually pay a deposit of ten per cent of the price, though a smaller sum is common, and you agree a completion date, often one to four weeks later. From exchange, you are responsible for insuring the property, so arrange buildings insurance in time.
On completion day your solicitor sends the balance of the price to the seller’s solicitor. When they confirm receipt, the agent releases the keys. Moving day is not a good day to be rigid about timing in a chain: one late payment can leave several families waiting in vans.
Where purchases stall
The usual causes of delay are chain problems, slow lender valuations, missing paperwork on extensions and alterations, and lease issues. You can reduce risk by asking for the seller’s Property Information Forms early, checking Building Regulations sign-off for any work done in the last few decades and asking how many properties are in the chain above and below.
If you are buying with a mortgage, keep your finances still. Changing jobs, opening new credit or making large unexplained deposits between offer and completion can trigger fresh underwriting. Charlotte Hayes’s London team keeps a checklist for every client to avoid this.
If you would like a personal estimate of SDLT and total purchase costs for a London home, our sales team can prepare one before you make an offer. Contact us from any property page.
Related questions
How much deposit do I need to buy a home?
It depends on the country and the loan. In the US a conventional loan can start at 3% to 5% down, though 20% avoids mortgage insurance. In England, lenders typically want 5% to 10% for first-time buyers. In Portugal and Spain, non-residents are usually asked for 20% to 30% of the price in cash.
Add the closing costs and taxes on top, which range from about 2% in the US to 10% or more in parts of Spain.
How long does it take to buy a home?
In the US, closing usually takes 30 to 45 days after an accepted offer. In England and Wales the average is 12 to 16 weeks, and in Portugal and Spain 6 to 12 weeks from the signing of a promissory contract. Chains and surveys can add time.
Should I get a survey or home inspection?
Yes. An inspection or survey identifies defects that are not visible on a viewing, such as roof problems, damp, outdated wiring or foundation movement. It gives you leverage to renegotiate the price or ask for repairs, and the cost is small compared with the price of the property.
Can I make an offer below the asking price?
You can, and in many markets it is normal. Your agent can tell you how far offers are landing from asking prices in the area and how long comparable homes have been on the market. A well-supported offer with a flexible completion date often succeeds better than a very low one.
What is a chain, and why does it matter?
A chain is a series of linked sales and purchases in which each buyer depends on the seller above them completing. If one sale falls through, the entire chain can collapse. Buying a vacant property or from a chain-free seller makes the process faster and more predictable.