5 min read
Considering purchasing a new build property? Here we talk through the pros and cons of purchasing a new build home, along with the key differences between new builds and other types of houses.
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New build homes offer first-time buyers and home movers alike the exciting opportunity to move into a property that nobody else has ever lived in. If you’re considering buying a new build house, it’s important to weigh the pros and cons carefully before making your decision. Here, we explore the key buying a new build house pros and cons to help you decide if a new build is right for you.
In this article:
Although new build homes and new build developments have seen a decline over the last couple of years, they’re still a popular choice for those wanting a modern and fresh property to move into. Built with purpose, there’s a wide variety of sizes, styles and price points to choose from. Find other advantages of new build homes below:
A long chain can seriously hold up the progress of your move. Moving into a new build property with no sellers to move out can help you to move quicker, free from the stresses of other people’s buying and selling journeys. If you already have a house to sell, this may also make your property more attractive to buyers.
The fittings and fixtures within a new build home will be fresh, clean and ready to go, without the need to do essential repairs or additional building work on the property.
Buying a new build property direct from the developer means that the potential for deals and inclusions are higher, as they can be keen to make a sale. In some instances, the company might even pay some or all of your stamp duty in order to close the sale.
Certain government-backed schemes to aid first-time buyers only apply to new build properties, meaning that buying a new build could save you money over other types of homes.
Find out more about first-time buyer schemes.
New build properties are designed to reflect the taste of today, meaning that rooms will be up to the minute in terms of design, features and layout.
If you’re buying a new build property off-plan, you may be able to have a say in the layout and features of your home before it’s built, allowing you to put your stamp on the place even before you move in.
Find out more about buying a new build off-plan.
New build homes are designed to meet government building regulations for things like energy efficiency, saving you money by lowering your bills whilst also minimising your environmental impact.
Find out more about every ratings and Energy Performance Certificate's when buying a house.
Many new build homes come with guarantees from the company that built them, covering everything from window seals and faulty pipes to structural issues with the roof, ceilings or chimney, giving you peace of mind for the future.
Find more information about new build warranties and aftercare in our top tips when buying a new build guide.
Depending on market movement, your new build property could already be worth more than what you paid by the time you move in.
The new build conveyancing process has quite a few differences than a standard purchase. Find out more about the process and the role of a conveyancer in our guide.
Is buying a new build worth it? We’ve explored the benefits, here we look at the downsides of buying a new build:
Some new build developments aren’t being adopted by local councils, meaning instead that private management companies are being given responsibilities such as maintaining shared spaces. The cost of this will ultimately feed back to residents, meaning you could face additional fees not found in other property types.
It’s in the interest of new build developers to include as many properties as possible on their land, meaning that space for each home could be less than you might get with other types of property.
If there are delays and you can’t complete before your mortgage offer expires, you’ll have to re-apply, possibly ending up with a less favourable mortgage product.
If buying a new-build off-plan, you sign the contract before the property has been built. This means if circumstances change and you can no longer complete the purchase, it’s likely that you would lose your deposit.
New build development companies can sometimes push for buyers to use their recommended conveyancing firms. Choosing your own conveyancing solicitor is likely to put you in a better position, ensuring that your conveyancer is acting in your favour rather than the developer’s.
We work with conveyancing solicitors experienced in new build purchases, get your conveyancing quote today.
Being new and fresh is a huge advantage of new build properties, but it also means they can come with a hefty price tag, new builds are often more expensive than similar sized older properties.
If you find yourself paying a ‘premium’ for a new property, you may find that the resale value could decline steeply in the first few years.
Some new build developments have attracted bad press for the number of issues reported soon after moving in. These can range from small defects to major structural issues, which is why getting a comprehensive snagging survey as soon as possible to give your property a thorough inspection is highly recommended.
Another source of bad press at developer level can be hold-ups in the move-in process. If your new build is running behind schedule on its development, then you might find yourself searching for temporary accommodation or storage for your belongings whilst you wait for the green light, adding both stress and an additional financial burden to your move.
Whilst some can appreciate the blank canvas nature of a new build home, others might find it a challenge to make the space feel like their own.
As soon as you’ve moved into a new build property, it’s no longer a true new build, which may affect resale value. Future buyers seeking a new build may look elsewhere, even if your home is part of or near the same development.
Your likes, dislikes, taste, future plans and more will all come into play whilst deciding what type of property to invest in.
If you’re looking for a fresh, modern space that you’re ready and willing to put your stamp on, a new build home or new build property could be perfect for you. If you’re seeking character and community in a more traditional setting, it could be that a home outside of a new build development is better suited for you. Check out the pros and cons for new build home and properties vs other property types below:
| Feature | Pros and cons | ||
|---|---|---|---|
| Move-in readiness | Ready to move into with new fittings, fixtures, and no immediate repairs needed | ||
| Space and layout | Often smaller rooms and outdoor space due to dense development plans, but they usually maximise the use of available space | ||
| Price | Generally priced at a premium due to newness and modern features | ||
| Character and style | Modern, clean design but can lack unique character | ||
| Customisation | Can customise layout and finishes if buying off-plan | ||
| Energy efficiency | Built to latest energy efficiency regulations, saving on bills and reducing environmental impact | ||
| Warranty and guarantees | Usually comes with a warranty covering structural issues and defects | ||
| Snagging and defects | Risk of early snagging issues, requiring a detailed snagging survey | ||
| Delays | Possible construction or completion delays | ||
| Management fees | Possible ongoing fees for communal maintenance in private developments | ||
| Resale value | May initially depreciate or face a resale premium “new build tax” | ||
| Mortgage and deposit risks | Mortgage offers may expire if there are completion delays; deposit at risk if buying off-plan | ||
| Chain status | No upward chain, so transactions can be quicker and smoother | ||
| Government schemes | Eligible for specific schemes like First Homes Scheme | ||
| Feature | Pros and cons | ||
|---|---|---|---|
| Move-in readiness | May require renovations or repairs before moving in | ||
| Space and layout | Usually offers larger rooms and more outdoor space, but may have an outdated layout | ||
| Price | Often more affordable and may have room for negotiation, but money may need to be spent on renovations | ||
| Character and style | Rich in historic charm and architectural details | ||
| Customisation | Limited ability to customise without renovation work | ||
| Energy efficiency | Older homes may be less energy efficient, potentially higher running costs | ||
| Warranty and guarantees | No warranty, responsibility falls fully on the buyer | ||
| Snagging and defects | Potential hidden defects due to age, which can lead to costly repairs – recommended to get a home buyers survey | ||
| Delays | No build delays, but could be delays caused by the chain | ||
| Management fees | Generally, no management fees unless buying a leasehold part of a managed estate | ||
| Resale value | Can appreciate steadily, especially in popular or historic areas | ||
| Mortgage and deposit risks | Generally straightforward mortgage process with no deposit risks related to build completion | ||
| Chain status | Older homes may be part of a chain, potentially delaying completion | ||
| Government schemes | May not qualify for new build-specific schemes, however other government-backed schemes such as Lifetime ISA can still be used | ||
Whether you’re a first-time buyer or simply not sure not what type of home you’re interested in next, there’s nothing to lose by taking a visit to a new build development in your local area, allowing you to get a sense of what your life could be like should you decide to take the plunge.
This depends on your preferences and priorities. New build homes offer modern designs with stylish features, high energy efficiency and no upward chain. However, they can come with premium prices, potential snagging issues and can offer less space, both inside and outside.
Many new builds are purchased at a premium price, which can make them more likely to drop in value within the first few years. However, this isn’t always the case, as a property’s resale price ultimately depends on factors like location, local demand, and the wider housing market.
Benefits of new builds typically include no upward chain, high energy efficiency, a modern layout, and, in some cases, incentives from the developer.
Potential drawbacks include management fees, premium pricing, less living space and a lack of character.
Yes, new build homes are generally more energy-efficient because they are built to meet latest government regulations. This means better insulation, modern heating systems, and energy-saving features. Find ways to make your home more energy efficient.
Developers often offer incentives like covering stamp duty costs or providing free upgrades. These offers can make buying a new build more affordable, but they vary by developer and location. Find out how to take advantage of developer incentives in our top tips to buying a new build guide.
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