New-build properties often have a premium, but there are positives too
If you’re searching for a new home, should you buy a new-build or opt for an older property? While new-builds often come with a premium price tag, there are benefits to being the first person to own the home.
According to the Office for National Statistics, more than 204,000 homes were built across the UK in 2021/22. So, you could have plenty of choice if you want to buy a new-build property.
Read on to discover five reasons why a new-build could make sense for you.
1. They are likely to be more energy-efficient
As energy prices have soared in the last year, energy efficiency could be a big selling point when you’re searching for a home.
While there are no legal requirements for energy efficiency, most new-builds will have a higher rating on their Energy Performance Certificate (EPC) than older properties. In fact, government figures show that in 2021, 84% of new homes in England had an EPC rating of A or B.
Choosing a home with a higher EPC rating could significantly reduce your utility bills. Research from 2022 suggests that homes with an EPC rating of C or below cost homeowners, on average, £448 more each year.
The white goods in a new-build home will also be brand new, and more likely to be energy-efficient, potentially cutting your outgoings even further.
2. Your home could come with a warranty
When you’re spending such a large sum, it’s natural to worry about what could go wrong. What would happen if your property needed structural repairs, and how would you fund the necessary work?
One of the good things about buying a new-build is that they often come with a warranty that could provide peace of mind. If this is a key selling point for you, make sure you check what would be covered and how long the warranty period lasts, as it will vary between housebuilders.
In addition, household appliances, like your fridge or washing machine, will be new and likely to benefit from warranties as well. Make sure you get the necessary documents from the housebuilder for each appliance in case you need to make a claim.
3. You could save money by not paying for a survey
A survey can provide an overview of the state of the property you want to buy. Many people purchasing a new-build choose a snagging report over a survey, which could save you hundreds of pounds.
A snagging survey will spot minor defects and check the quality of workmanship, so potential issues can be fixed before you move in. However, it won’t be as thorough as a survey. If you have concerns about the property, a survey could still be useful.
4. Housebuilders may offer you an incentive
To encourage you to buy, housebuilders may offer you incentives. This often happens during a quiet period so they can meet sales targets. It’s always worth asking what they could throw in – if you don’t ask, you don’t get.
Common incentives include:
- Additional fixtures or fittings free of charge
- Landscaping your garden
- Cashback
- The housebuilder paying your Stamp Duty bill.
Incentives could save you money and mean you have less work to do on the property when you move in.
5. The property won’t be part of a chain
A key benefit of a new-build property is that it isn’t in a chain.
If you’re a first-time buyer, you won’t have to wait on the sale of any other property. So, you may be able to move in quicker or at your own pace.
If you’re selling a home, there’s still a risk that the chain could collapse, but there’s less chance of it happening as you won’t have any buyers above you. It can make buying your next home less stressful.
Do you need a mortgage for a new-build property?
If you’ve found a new-build property you’re ready to buy, we can help you find a mortgage. Please contact us to talk about your home-buying plans and how we could support you.
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.
