New Build FAQs

So, you’re thinking of buying a new build. It’s a very popular choice in the UK, with well over 200,000 new homes built every year. But, what do you need to know about buying a new build? How are they different to older homes, and what are the pros and cons? This article answers some of the most frequently asked questions about buying a new build home.  

What are the benefits of buying a new build? 

There are plenty of benefits that come with buying a new build, such as: 

• You usually get to choose all the fixtures and fittings (such as the kitchen and bathroom), so it’s built exactly to your taste 
• Once built, they’re ready to move into with no renovations required 
• They’re often more energy efficient than older homes (which can mean cheaper bills) 
• New builds often come with warranties or guarantees for the building work, so if any issues do arise, you may not have to pay to get them sorted 
• The conveyancing process may be able to be completed more quickly, as nobody lives in the new build house you are buying, limiting the chain 

What are the downsides of buying a new build? 

However, buying a new build property isn’t for everyone, and there are some potential downsides to look out for, including: 

• New builds can be more expensive to purchase than older homes 
• They may depreciate in price in the short term, meaning you may risk not getting the price you paid back if you decide to sell soon after buying
• If you’re buying the property ‘off-plan’, i.e. before it is built, the developer may encounter delays that push back the date you can move in 
• Warranties and guarantees often don’t cover finishings (such as paint, joinery, kitchen installation, and the like) so it’s important to inspect everything before you confirm you’re happy with it 

Of course, these potential downsides don’t apply to every new build purchase, but they are things you may wish to consider based on your specific area and chosen developer before you make a decision.  

Is it harder to get a mortgage on a new build property 

It can be harder to get a mortgage on a new build property. This is because some mortgage lenders are more reluctant to lend on a new build property, as they may be concerned about it not retaining its full value. There is also the consideration that the mortgage offer may expire before you are able to complete the transaction, if there are delays to the building process. However, the majority of people will still be able to get a mortgage on a new build. You may want to consider working with a mortgage broker who can assist you in finding the right mortgage for your needs.  

What is snagging? 

One of the main appeals of a new build property is that it is ready for you to move straight in, with no renovating required. However, there may still be some minor issues – these are ‘snags’. Snags should be covered under the property’s warranty, so the developer will be obliged to fix them. However, you may need to report them within a certain amount of time – be sure to check the details.  

You can check the property for snags yourself – you may want to do this before you move your furniture in to give you access to every area of the house. There are also dedicated ‘snagging companies’ who will do the checks for you and compile a list, but be aware that these services come at a cost.  

Are new build properties leasehold?  

In 2019, the government announced that all new build houses must be sold as freehold, not leasehold. This means that you will own both the property and the land on which it stands. 

New build flats may still be sold as leasehold, as there are multiple properties sharing the same land. However, the government also set out that ground rents should be zero, to protect those buying a new build from unfair charges that often made new build homes tricky to sell in the past.  

What does off-plan mean?  

If you’re buying a new build ‘off-plan’ this means that the property hasn’t been built yet. You’re buying it based on the developer’s plans, drawings, and CGI renderings of what it will look like. This is an increasingly popular way of buying a new build, as it ensures you get early choice of plot and can usually pick the way you want everything to look inside the property.  

Tips for buying a new build 

If you’re considering buying a new build, here are some top tips: 

• Research the developer. Some have a better reputation than others. It’s important that they have good customer service and communication to keep you updated throughout your journey and to solve any issues that may arise.  
• Visit the location of the development, even if it has not been built yet. This will give you a feel for the area, what’s around it, and whether it’s somewhere you can see yourself living. 
• Consider visiting one of the developer’s other developments if you can. This will show you their quality and style up close, helping you to make the decision that’s right for you.  

A guide to the conveyancing process 

For more information about the conveyancing process as a whole for buyers, download our free guide to conveyancing below: