If you are thinking about moving home or buying your first property, you may be tempted by a new build. New-build developments are popping up all over the country, making them accessible whatever your location and budget. In 2023, the National House Building Council reported that 133,213 new homes were finished.
But is a new build actually worth it? Here’s why a new build could be the perfect home for you.
What is a new build home?
A new build home is a property that has been recently constructed and has not had any previous owners. New build homes come in all shapes and sizes: flats, apartments, terraced houses and detached structures.
Mortgage lenders are generally appeased with that definition, but there are some intricacies to consider. For example, some lenders such as HSBC or Natwest say that a new build must have been constructed in the past two years, but Santander disagrees and says it should be within the past year unless it has never been previously occupied. It is always worth checking with your mortgage provider to make sure your potential new home meets their requirements.
Advantages of a new build
There are so many advantages to buying a newly built home. Here are the top 6 reasons why you should:
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Energy-saving focus
In recent years, the government has enforced a number of regulations and requirements for new homes to reduce their carbon footprint. As such, new owners will find that their home is focused on being energy efficient.
Homes completed after 2025 will need to comply with the Future Homes Standard, meaning they will produce 75%-80% less carbon than current homes.
Energy-saving components can be as simple as double or triple glazing which reduces the amount of heat that can escape which will lower your energy bills. Wall and roof insulation should be included in the construction phase as well, keeping your home draught-free and warm in the winter months.
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Utilisation of buying schemes
If you are considering a new build, you may be eligible for some financial assistance. Shared ownership is a scheme offered by some housing providers. This is where you can buy a share of the property and then pay rent on the remaining portion.
Welsh home-seekers may be able to get help under the Help To Buy Equity Loan Wales scheme. Simply put, you need a 5% deposit and a 75% mortgage. The remaining 20% comes from an equity loan from the Welsh government. It is worth noting that under this scheme you will need to complete your home purchase before the end of the scheme in March 2025.
The home-building industry has also launched a financial scheme for homebuyers. Deposit Unlock is for people who can raise a 5% deposit with the remaining 95% of the purchase price coming from lenders who have signed up to the scheme.
Scots can also seek financial support when buying a new build home. LIFT (Low-cost Initiative for First-Time Buyers) is different from its Welsh counterpart. For this loan, you must be able to purchase between 60 and 90% of the home with the rest coming from the government.
As with all loans, there are eligibility criteria that you and your property must meet. Remember to check all conditions before committing to such a loan as you may be rejected or find yourself in financial difficulty.
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Buyer incentives
As well as loans, you may be offered other incentives to buy a new build from the developers themselves. Some companies may offer to pay a cash payment to cover moving costs or to help fund your deposit.
Other developers may offer to cover the cost of legal fees or Stamp Duty. Stamp Duty is only applicable to people who have already owned a home and not to first-time buyers.
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Customisation of design
Buying a home that is being built means that the structure will be the same as all the others in the development. You may, however, be able to customise the design of the interior.
Take some time to visit the development’s show home. Here you may be able to choose design aspects such as flooring, cabinetry and worktop materials. By being able to have some input at this stage, you will be moving into a property that already has the basics of the design you like. This will help to make it feel more like your home and allow you to continue decorating as you like.
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Chain free
Dealing with chains when buying or selling a property can make the process a lot more stressful. There is always a chance that the chain will collapse and that your purchase will be significantly delayed.
Buying a new build means that there is no upward chain, therefore you are not relying on anyone being able to move out or sell their property for you to move in. Buyers of properties with no chain tend to find the process moves quickly so you could be packing up and in your new home before you know it!
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Less work for you
Buying a home that has had previous owners often means that there will be some sort of work that you will need to do. Whether it is fixing some minor issues, redecorating in your style or undergoing expensive work like getting a new roof, it all adds to the cost and stress of moving in.
With a new build home, you can be confident that the structure and interior are of a high standard, meaning there is no renovation or redecoration needed.
For peace of mind, many developers offer a ten-year structural warranty. This usually covers any issues that stem from workmanship or materials, not normal wear and tear. Some warranties also cover design issues and land inspection fails. The warranty is for the property itself, so if you were to sell within ten years, the warranty stays with the building and the new owners.
We hope you found this blog post on Why A New Build Could Be The Perfect Home For You useful. Be sure to check out our post on House Hunting Tips for First-Time Home Buyers for more great tips!
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