Buying a property in the UK
The rate, the process, the taxes, the checks. Four minutes, no padding.
Bank Rate · How a purchase works · Tax · Things to check
Bank of England base rate
3.75%
since 18 December 2025
- Mortgage rates follow it. Lenders price fixed and tracker deals off this number.
- Lower rate, cheaper deals. Higher rate, dearer deals, and less you can afford to borrow.
Every change, as a table
| Changed | New rate |
|---|---|
| 18 Dec 2025 | 3.75% |
| 7 Aug 2025 | 4.00% |
| 8 May 2025 | 4.25% |
| 6 Feb 2025 | 4.50% |
| 7 Nov 2024 | 4.75% |
| 1 Aug 2024 | 5.00% |
| 3 Aug 2023 | 5.25% |
| 22 Jun 2023 | 5.00% |
| 11 May 2023 | 4.50% |
| 23 Mar 2023 | 4.25% |
| 2 Feb 2023 | 4.00% |
| 15 Dec 2022 | 3.50% |
| 3 Nov 2022 | 3.00% |
| 22 Sep 2022 | 2.25% |
| 4 Aug 2022 | 1.75% |
| 16 Jun 2022 | 1.25% |
| 5 May 2022 | 1.00% |
| 17 Mar 2022 | 0.75% |
| 3 Feb 2022 | 0.50% |
| 16 Dec 2021 | 0.25% |
| 19 Mar 2020 | 0.10% |
| 11 Mar 2020 | 0.25% |
| 2 Aug 2018 | 0.75% |
| 2 Nov 2017 | 0.50% |
| 19 Oct 2016 | 0.25% |
Source: Bank of England Interactive Statistical Database (series IUDBEDR).
How a UK property purchase works
- Get an Agreement in Principle first. Agents won't take an offer seriously without one. Budget for Stamp Duty, solicitor, survey, lender fees and removals on top of the price.
- Make an offer. Not binding until exchange (step 5) in England, Wales and NI, so either side can walk away until then. Scotland binds much earlier, once missives conclude.
- Instruct a solicitor. Book a survey. The lender's valuation is not a survey and won't flag defects. Which survey level is below.
- Apply for the formal mortgage offer. Only possible once there's a specific property and an agreed price.
- Searches, then exchange. Local authority, drainage and environmental searches (a report on this site covers much of this for free, first). Exchange is the point of no return: deposit paid, completion date fixed.
- Completion. Balance paid, keys handed over. Days to weeks after exchange, by agreement.
- After completion. Your solicitor files the Stamp Duty return and registers you with Land Registry. Check it's in their fee.
Tax on buying and owning property
Stamp Duty (or equivalent)
- One-off, paid on completion. SDLT in England and NI, LTT in Wales, LBTT in Scotland.
- Banded, not flat. Each rate applies only to the slice of the price inside its band. First-time buyers and additional properties have their own bands.
- Bands change at budgets. The free stamp duty calculator does the maths on any price in England and Northern Ireland, Scotland or Wales, and every property report here carries the same calculator, free, for that home. Both work from the published bands, so confirm the exact figure with your solicitor before you exchange.
Capital Gains Tax
- Only when you sell, only on the gain. Second homes and buy-to-lets. Your main home is normally exempt.
- Rates and allowance move. Current figures: gov.uk.
Council Tax
- Annual, set by band. A to H in England and Scotland, Wales has its own. Based on a 1991 valuation (2003 in Wales), not today's price.
- Look up any address free at gov.uk/council-tax-bands. It isn't open data, so reports here don't show it.
Things to check before you commit
- Lease under 80 years is a problem. Expensive to extend, hard to mortgage. Check years left, ground rent and service charge before offering.
- Pick the survey level. Level 1 for newer and sound. Level 2 is the usual choice. Level 3 for older, larger or altered homes.
- Run the free report first. 30 checks free on any address, among them flood, surface water, radon, noise, planning constraints, sold prices, the EPC, crime and schools, before you pay anyone.
- Chain-free is safer. New build, probate, or a seller who has already moved. Chains are why purchases collapse.
- Book solicitor and surveyor before the offer. Prices vary a lot. Being ready shortens everything after.