As a general rule, the steps for buying or selling your home in the United Kingdom will take up to twelve weeks to complete.
This guide explains when you need an Energy Performance Certificate, how to use an estate agent, and the rules for conveyancing and paying tax.
There are several key steps to follow when buying or selling your home:
Note: The rules for joint property ownership (e.g. buying a house with someone else) allow for a maximum of three (3) other people.
Energy Performance Certificates give energy efficiency ratings to properties. They rank it from A (being the most efficient) to G (being the least efficient) and they will be valid for a period of ten (10) years.
An Energy Performance Certificate becomes a legal requirement any time a property is:
Sellers and renters need to order an EPC for potential buyers or tenants before they start marketing the property (e.g. putting it up for sale or for rent).
The rules for EPCs differ somewhat in Scotland. Here, the seller would actually need to display the EPC certificate inside the property (e.g. next to the boiler).
Note: The Energy saving Trust website contains further advice and information about home efficiency measures that help to keep homes warm and reduce carbon footprints.
The main responsibility for showing an EPC would fall on the person who is selling the property. Thus, the seller, landlord, or letting agent must show it to the buyer or renter.
Accredited assessors can assess properties for the purpose of producing Energy Performance Certificates. Sellers or renters can book a property assessment via:
Important: The Shelter Scotland website contains a simplified overview about the home buying process outside England and Wales.
Some of the typical buildings that do not need an Energy Performance Certificate (EPC) include:
Failing to get an Energy Performance Certificate (EPC) when needed can result in a fine.
You can find an energy certificate, along with recommendation reports, for properties in England, Wales, and in Northern Ireland via the GOV.UK website.
The service is free of charge and a useful way of comparing the energy performance of your home with similar ones. You can conduct a search using the EPC report reference number or the address of the property.
Even so, if you prefer not to have people see your EPC details, you can use the same link to opt out of the EPC register.
Note: Another section explains more about Energy Performance Certificates for business premises and how to appeal a penalty charge.
In most cases, buyers and sellers use estate agents to help them buy or sell a home. In this case, a seller would need to sign a legally binding contract with the agent.
Some of the legal obligations for businesses that engage in residential estate agency work, include:
Important: Sellers can be taken to court if they fail to follow the terms stated in the contractual agreement.
What if you have an issue with the estate agent? If so, you should make a direct complaint to them in the first instance. Doing so gives them a reasonable opportunity to solve the complaint.
If the estate agent fails to find an acceptable solution, you can make an official complaint to one of the following redress schemes (whichever the agent belongs to):
Property Redress Scheme
Tel: 0333 321 9418
Email: [email protected]
The Property Ombudsman
Tel: 01722 333306
Email: [email protected]
Potential buyers need to submit their offers through the estate agent if the seller is using one. But, buyers can make offers directly to sellers where it is a private sale, such as:
According to the law in England and Wales, offers submitted do not become legally binding until the buyer and the seller exchange the contract.
In some cases, a buyer may place an offer 'subject to contract'. If so, they can continue negotiating the price. An example could be when a survey reveals a structural problem with the property.
Note: Some of the rules for buying or selling your home differ when making purchase offers for properties in Scotland.
The seller will be responsible for drawing up a legal contract (to complete the transfer of ownership) once they accept the buyer's offer.
Any contract drawn up between a home buyer and seller should contain the sale price, along with any relevant details regarding:
It is not uncommon for a seller to hire the services of a solicitor (or conveyancer). If so, they will draft the initial contract, and:
At some point, the buyer and seller will usually be ready to exchange the contract. This is when both sides need to sign the final copies and send them to each other.
This type of agreement to sell and buy a property becomes legally binding after the exchange takes place. As a rule, neither the buyer or seller can withdraw from this contractual agreement without having to pay an amount of compensation to the other party.
The final steps for buying or selling your home begin after exchanging the contracts and handling any remaining checks or requests from the buyer. They include:
Note: Another section explains how to contact Citizens Advice if you need additional information about buying or selling your property.
In most cases, home buyers and sellers in the United Kingdom will have some tax to pay, such as:
If you bought a home in England between the 8th of July 2020 and the 31st of March 2021 you would pay Stamp Duty Land Tax if you paid over £500,000 for the property.
If you bought a home in England before the 8th of July 2020 (or after 31st of March 2021) you pay Stamp Duty Land Tax if you paid over £125,000 for the property.
Furthermore, if you are buying your first home, there is no need to pay tax provided the property purchase price is not over £300,000.
Note: Swapping something with economic value for a property, such as another property or shares, means you would need to pay the tax.
You would not have Capital Gains Tax liabilities when selling (or 'disposing of') your home if (all):
Meeting these criteria means you get a kind of tax relief called 'Private Residence Relief' through an automatic process. Hence, there would be no specific action needed in relation to Capital Gains Tax.
How to Buy or Sell Your Home in the United Kingdom