When looking to buy a house, many people will have come across the term ‘new build’. This refers to a newly built property, that no one else has lived in before. New builds are a popular option for many homebuyers for a number of reasons. However, they come with their own set of considerations.
In this article, we’ll have a look at why new builds appeal to so many buyers, some common issues that you may face when buying one, and what you can do to overcome any problems.
What are the benefits of buying a new build home?
There are many reasons why some people find new build homes appealing. They often have the advantage of being more energy efficient than older homes. If they are constructed properly, homeowners can save thousands of pounds each year on energy bills.
Also, it is common for buyers to customise their properties before they move in. Often, developers let buyers choose fixtures and fittings, such as carpets, tiling, cupboards and doors. This means the buyer can tailor their home to their specific taste before they move in. This also means that when you move in all you need to do is unpack. There won’t be any decorating or repairs you need to make ahead of time.
Many new build developers will offer guarantees with their properties. This means that you shouldn’t have to spend much money on repairs if something goes wrong.
Finally, buyers can enjoy the benefits of a chain-free purchase. As you are the first homeowner you don’t risk the sale falling through due to buyers ahead of you in the chain not being able to complete.
What are some issues of buying a new build home?
New builds often have a bad reputation in the UK. Some of this is down to personal preference, with many people disliking the look of new build homes, or finding the creation of a new estate to be imposing in their neighbourhood. However, as mentioned earlier, there are many benefits to new build homes, and many people like how they look.
Some of the bad press around new build homes is due to faults and poor build-quality. In 2017, a YouGov survey for Shelter, a housing charity, found that 51% of recent new build homeowners had experienced major problems with their property. Surveys like this, and stories spread about people’s bad experiences have made homeowners understandably sceptical of new build properties.
Also, some developments may put many houses onto one site, in order to maximise profits. This means there can be a lack of space. Some people may find that a new build is actually smaller than their old one, making it difficult for larger families to move in.
If you’re worried about the potential issues of buying a new house, but think that you’d like to buy one, there are some steps you can take to mitigate against any risks.
Tips for preventing issues when buying a new build home
To avoid having issues with your new build, there are a few things you should consider.
- Secure a mortgage in principle: Before considering a new build home, get a mortgage in principle. This pre-approval indicates the amount you can borrow, helping streamline the buying process and providing clarity on your budget. It ensures you are well-prepared when making an offer on a new build property and minimises potential financial hurdles down the line.
- Research: Before purchasing a property, it’s a good idea to thoroughly research the developer. You need to make sure that they are reputable and trustworthy, otherwise you could be facing the consequences of poor quality work. Check for reviews online and ask people you know about their experiences with new build developers. You can also check that the developers are signed to a code of standards. In the UK, there are two main codes. One is the ‘Consumer Code for Home Builders’, which allows homeowners to escalate developer disputes for free. The second is the ‘New Homes Quality Code’ which sets standards for developers and helps to deliver fair outcomes for buyers who are disappointed with their purchase.
- Get the full details on the property: If you are buying ‘off-plan’; where the house hasn’t yet been built, you need to know the sizes and specifications of everything. This means that you know exactly what you are paying for, and if anything is wrong you can have it fixed or be compensated for it.
- Get a ‘snagging survey’: This is an inspection carried out by a professional once the house is built, before the legal completion. They will check for any minor defects in your house, and provide a list to the house builder, who then has to fix these issues before they sell you the property. These surveys can cost anywhere from £300 to £900, but can potentially save you a lot of money and time in the future.
- Consider the future: Sometimes new builds can depreciate in value in the first few years. You often pay a premium to have a new property that no one else has lived in. But, as with a brand new car, the value decreases as soon as it is no longer ‘new’. For this reason, it’s a good idea to reasonably plan for the future; if you know you will need to move house in two years’ time, you may be better served by buying a ‘used’ house.
- Factor in possible delays: Keep in mind that delays are possible when buying a newly built home. The main issue with construction delays usually involves your mortgage. This is because mortgage offers usually last for six months, so if there's a delay, you might need to reapply, which could cost you a lot of money. When agreeing to buy a new home, make sure the developer commits to a specific completion date, known as the ‘long stop’ date. If they miss it, they may have to compensate you.
Summary
There are many benefits and some limitations to buying a new build house. If you believe that it is the right option for you, make sure that you thoroughly research the developer and understand the property details. Make sure you consider any future risks and delays when buying a new build home.
