When you’re buying a property, you have a lot of decisions to make. One you might be weighing up is whether a new-build is the right option for you.
New-build homes often get a bad reputation in the press. Indeed, a report in FT Adviser suggests that 32% of people believe new-build properties are “poor quality” and more than half say older homes are superior.
However, there are benefits to buying a new home too. Read on to discover the pros and cons you might want to weigh up before you start your property search.
5 positive reasons to purchase a new-build property
1. A new-build is a blank canvas
If you want to move straight into your home without having to worry about updating décor that doesn’t suit your style, a new-build could be perfect. New properties offer a blank canvas to turn into your dream home.
2. You might have a chance to design your home
If you buy your home “off plan” before construction is complete, you could have a say in the design of it. You might be able to select fittings, choose a layout, or have smart technology installed. It may be a great opportunity to think about what would work for you and your family, and then design your home to suit your needs.
3. Some developers may offer you an incentive
To entice potential buyers, some developers may offer incentives when you purchase. For example, they might pay your Stamp Duty bill or cover your legal fees, which could save you thousands of pounds.
4. A new-build is likely to be more energy-efficient
One of the key benefits of buying a new-build is that they have to comply with the latest building regulations, including those related to energy efficiency. As a result, a new-build is likely to be far more energy-efficient than older properties and lead to lower energy bills.
Indeed, according to a 2023 Home Builders Federation report, 85% of new-build homes receive an Energy Performance Certificate rating of A or B. In contrast, just 4% of existing properties reached the same standard.
5. A new-build will be chain-free
Being in a property chain when you’re buying a home can be frustrating and lead to substantial delays. As you’re the first owner, you won’t need to worry about a seller finding a new home themselves.
5 potential drawbacks to consider when buying a new-build home
1. New-build properties may be smaller
When you ask people about the drawbacks of new-builds, space is often one of the first things they’ll say.
Some developers may pack in as many properties as possible to maximise profits, so you could find new-builds are smaller than older homes. Of course, this varies between properties, but it’s something to consider.
2. You’ll usually pay a premium for new-build properties
You will typically pay more for a new-build property than you would for a comparable older home.
As a result, some new-builds will experience a fall in value in the first few years, which might affect your options if you want to move, particularly if you fall into negative equity – where the outstanding mortgage on the property is higher than the value of the home.
3. You might need to pay an estate management charge
Many new estates are not being adopted by local councils. So, you may need to pay a fee to a management company. This fee would be used to cover the cost of shared spaces, like parks. Be sure to check if a new-build you’re interested in has an estate management charge and how much it could rise each year.
4. You may find quality and snagging issues
You may have heard about new-build properties that have a long list of issues. Don’t expect your home to be perfect, there are often snagging issues that the developers will address after you’ve moved in.
Yet, a survey suggests that most people are happy with their home – 87.5% of people who purchased a new-build in 2020 said they were satisfied with the quality.
5. There could be delays
Developments don’t always run on time, so the date you pick up your keys could be delayed. If you’re selling your current home, it could cause issues with your buyer, or end up costing you money if you rent.
Do you need a mortgage to secure your new home?
Whether you decide a new-build property is right for you or not, we could help you secure a mortgage. Please get in touch to talk about your mortgage needs and how we may work together.
Please note:
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
Your home may be repossessed if you do not keep up repayments on a mortgage or other loans secured on it.
Approver Quilter Financial Services Limited & Quilter Mortgage Planning Limited. 11/11/2024
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