My guide to buying a new-build property covers everything from the schemes available to assist with the purchase to the benefits of brand-new products and 10-year warranties.

Key Takeaways:

• Many developers and builders offer off-plan properties so you can select your ideal home before it is built.
• Buyers influence certain aspects of the design, such as the plug socket placement, kitchen worktop colour, and garden landscaping.
• Once you’ve found a new-build home that you adore, you’ll need to secure it with a reservation fee, typically in the region of £1,000, depending on the developer.
• After that, you’ll have to lock in your mortgage and choose a solicitor. Verify that the completion date you choose falls within the three-month mortgage offer period.
• Before an off-plan home is ready to move into, it may take several months to a year or longer.
• There are various buying schemes, such as Shared Ownership and Deposit Unlock, to assist you in purchasing a new home.

In the UK, buyers are opting for new build properties. There are numerous advantages accompany them, including reduced deposits, 10-year warranties, and increased energy efficiency.

Investing in a home is likely one of the largest financial decisions you will ever make. So, would buying a brand-new house be the best choice for you?

Let’s examine the advantages, the purchasing procedure, and everything else you should know about new-build homes.

What are the benefits of buying a new build?

You can buy a home before it’s built.

Many new home developers and builders sell properties off-plan. This means that you can select the house of your dreams even before construction has started. Investing in an area you love or where there is a high demand is a great way to do so.

To find out if you can borrow the money you need, you should speak with a mortgage broker. After that, you must pay a reservation fee (typically around £1,000) to hold the perfect new-build home that you have found.

You can even trade contracts, pay your deposit off-plan, and then simply wait for the developer to notify you when the project will be finished.

You can choose the design and finishes.

Certain home builders and developers provide purchasers with the option to select important features and details of their new residence.

This could include things like your kitchen’s worktop colour, tiling, garden landscaping, doors, cabinets, and plug sockets.

The more options you have for the specifications, the sooner you reserve your new residence. Pay close attention to the fine print to ensure that you are not charged more for custom changes.

New-builds are low-maintenance.

The extremely low maintenance of new construction is one of its main advantages.

When you move into a new house, there won’t be any maintenance, repairs, or redecorating to do. This type of work is rarely required during the first few years.

All new builds are sold as freehold.

In 2019, the government eliminated developers’ ability to offer newly constructed homes as leaseholds. The action was taken to address unjust leasehold practices.

If you possess the freehold, you are the ultimate and outright owner of the property as well as the land it is built upon.

It also means that you won’t have to pay service fees and ground rent for properties that are leasehold.

Buying a new build is chain-free and more flexible.

You are not a part of an onward chain if this is your first time buying or if you are not selling another property. It implies that you can purchase a new house at your speed.

Without waiting on other buyers in an upward chain, move in as soon as the house is ready or schedule a time that works for you.

Bills are cheaper in a new build.

New research from the House Builders Federation shows that new build buyers could save more than £3,100 a year when the Energy Price Guarantee ends in June 2023.

The reason for this is that only 4% of older properties have an EPC rating of A or B, compared to 85% of newly constructed homes.

Double or triple glazing and excellent insulation are common features of newer buildings, which reduce heating costs and keep drafts out.

Also, they typically have the newest, most energy-efficient appliances, which require less maintenance than many of the older models.

Safety comes as standard in a new home.

New-build properties now must meet high building standards, there will also be top-notch safety and security measures in place.

In new housing developments, these typically include entry phones, gated entrances, security lighting, locks on windows and doors, and fire safety.

Developers offer incentives to buy their newly built homes.

Additionally, some developers and home builders provide incentives of their own to draw in buyers. Although they differ, these incentives could consist of:

• Settling your stamp duty.
• Making a deposit contribution.
• Free white goods, landscaping, interior design guidance, and fixtures and fittings.
• Cashback.
• Part-exchange agreements, in which your current house is purchased and sold on.
• They assist in selling your current property.

Developers and home builders can meet goals with the aid of such incentives. Throughout the year, keep an eye out for these offers to see what you can get.

What are the stages of buying a new build?

Find your property.

New homes are frequently sold off-plan. This indicates that they are not yet constructed. You may be shown detailed plans or given a tour of a show home.

One benefit of going off-plan is that it enables you to get involved in building your new home from the ground up. Naturally, though, you may need to exercise patience while your house is being built.

Reserve your property.

You will have to pay a reservation fee to secure a home once you’ve decided which development you want to purchase.

Although the price varies, it typically comes to about £1,000.

Organise the paperwork.

The next step is to choose a conveyancer to handle the legal paperwork. This is a solicitor who specialises in property law.

Locking in your mortgage at this point is also crucial. However, this is a little more difficult than with an already-built home.This is because mortgage offers normally expire after three and six months.

Verify that the completion date you have chosen fits within the terms of the mortgage offer. If not, you may discover that the offer is no longer valid.

In the event of a delay, some mortgage lenders might extend the offer. There are mortgages designed specifically for newly constructed homes that come with extra flexibility.

Wait for your new build property to be ready.

The time it takes to move into an off-plan home can range from several months to a year or longer.

The short stop is the date the developer expects to complete, and the long stop is the date the developer must complete by.

Decide on a completion date with the developer or builder of your home. This implies that you will be eligible for payment if the property is not completed on schedule.

Get ready to move in!

Your solicitor will need to complete the paperwork in the weeks leading up to your completion date. After that, you can swap contracts and make your deposit payment.

It’s a good idea to have a snagging survey done right before you move in to make sure there are no defects (see my checklist, below).

You can then move into your brand-new home, safe in the knowledge that if there are stains on the carpet it was you that made them.

New build buying schemes.

There are several financial support schemes available to help you to buy a new-build home.

Deposit Unlock

The home building industry recently introduced Deposit Unlock, their newest programme that allows first-time buyers and second steppers to purchase a new home with just a 5% down payment.

Participating house builders range from Barratt to Vistry, and the scheme can assist you in purchasing any type of home or flat with two or more bedrooms.

Shared Ownership

Through a government programme called Shared Ownership, you can purchase a portion of a property from a housing association.

You can purchase the property with a lower down payment and mortgage because you are only partially the owner. Rent and other costs on the portions you don’t own will still need to be paid.

First Homes

To assist local first-time buyers and key workers in getting onto the property ladder, the First Homes programme was introduced in 2021. It provides new construction homes with a 30% to 50% price reduction.

Low-income buyers will continue to profit from the lower rates each time the property is sold because they will be applied to the homes indefinitely.

An additional 10,000 properties will be added to the First Homes programme annually, according to a government pledge.

To qualify for the First Homes discount, buyers need to meet certain criteria:

1. You must be a brand-new customer. That implies that those who have ever received a home as a gift or inheritance are not qualified.
2. Whether you’re purchasing alone or with a partner, your income must be less than £80,000 (or £90,000 in London).
3. The maximum price of the property you’re purchasing must be £250,000, or £420,000 in London.
4. You must already have a connection to, work in, or reside in the area you wish to purchase a property in. For example, let’s say you have family, or you grew up there.
5. Key personnel will be prioritised.

New-build warranties.

Purchasers of newly constructed homes can feel secure knowing that extensive safeguards are in place to guarantee the highest calibre of construction.

Your new house will have a 10-year warranty and protection plan if it is registered with the National House Building Council.

New home builders are required to abide by the New Homes Quality Code or the Consumer Code for Home Builders.

Typically, they demand that home builders register with Checkmate, NHBC, Premier Guarantee, LABC Warranty, and other major new home warranty organisations in the UK. These groups account for more than 95% of all newly constructed homes in the UK.

This kind of coverage can give you peace of mind, lower your chances of being turned down for a mortgage, and possibly even save you money on future repairs.

A ten-year new home guarantee, for instance, might consist of:

Pre-completion insolvency insurance: Protects you in the event that, after you have exchanged contracts to purchase one of their new homes, your home builder or developer becomes insolvent.

Coverage for the first two years of ownership: The developer or builder of your home oversees fixing specific damage.

Insurance for certain areas of your new house: New construction homes typically include coverage for the building’s structure and other specific areas of the property. Beyond normal homeowner wear and tear, ten-year warranties can also cover any damage to floors, stairways, drains, and windows.

Consumer code benefits for new builds.

The Consumer Code for Home Builders was created to help consumers make the process of purchasing a new home equitable and clear.

All building companies registered with the main new home warranty providers in the UK are subject to the code.

The purpose of the code is to assist you in making an informed choice when purchasing a new home. There are legal requirements for your contractors or home builders to provide you with specific information.

They must also provide you with a clear and simple-to-read contract.

You should be informed about the dates of construction and completion by your home builder or developer.

If you experience unjustified delays, you are eligible for a reimbursement of your reservation fee. The code also applies to an after-sale service.

Additionally, it offers a low-cost, independent dispute resolution programme. This will settle your builder’s obligations without requiring you to go through the expensive process of suing them.

How do I make sure my new build is up to scratch?

Make sure your contract includes a “snagging provision” when you secure your home. This is to cover any small problems, fixes, or flaws found after completion.

Once construction is complete, inspect your home and let the builder or developer know what needs to be fixed.

Important things to watch out for are:

• Plumbing and electrics
• Brickwork
• Tiling
• Walls, floors, and ceilings
• Glass
• Paintwork
• Plaster
• Carpentry
• Fitted furniture
• Gutters

When you are ready to move into your immaculate new home, you can notify your builder of anything that needs to be sorted or cleaned up.

Author: Jag Chaggar