In recent years, new build properties have become increasingly popular among homebuyers, offering the appeal of modern amenities, energy efficiency, and the excitement of a brand-new living space. However, like any significant investment, there are both benefits and drawbacks to consider.

The process of purchasing a new build property can differ somewhat from buying an existing home, making the role of a conveyancing firm such as Franklins crucial for ensuring a smooth transaction, as hassle-free as possible.

In this blog, we will look at the advantages and disadvantages of buying a new build property to help you make a well-informed decision before committing.

Pros of Buying a New Build Property

Modern Design and Contemporary Amenities

New build properties are constructed using the latest architectural designs and feature modern amenities such as open-plan layouts, en-suite bathrooms, integrated appliances, and high-speed internet connectivity. These features cater to the preferences and needs of today’s lifestyle.

Energy Efficiency

A major benefit of new build properties is their energy efficiency. They typically incorporate the latest insulation, heating, and cooling technologies, leading to lower utility bills and a reduced environmental impact. Some lenders even offer a better interest rate or cashback on energy-efficient homes.

Customisation Options

Depending on the construction stage, some developers allow buyers to customise finishes and fixtures, giving you the chance to personalise your new home according to your tastes meaning there should be very little you will need to do when moving in.

Incentives

Majority of the developers will throw in some free sale extras to get the sale done which may include covering SDLT costs or Sale Extras costs.

Builder’s Warranty and Guarantees

New build properties come with a builder’s warranty, providing peace of mind against structural defects and major issues during the first 10 years of ownership. Additionally, modern appliances and systems often come with separate manufacturer warranties.

Lower Maintenance Costs

Since everything in a new build is brand new, maintenance costs are generally lower in the initial years compared to older properties, which may require immediate repairs or renovations.

Cons of Buying a New Build Property

Premium Price

New build properties often come with a higher price tag compared to older homes in the same area. It’s important to consider whether the additional cost is justified by the benefits of a new build.

Potential Completion Delays

Construction timelines can be delayed due to factors like weather, labour shortages, or financial issues faced by the developer which could take weeks or even months. These delays can disrupt your moving plans and cause inconvenience.

Limited Negotiation Flexibility

Unlike older homes, where negotiating the asking price is common, new build properties often have less room for price negotiation, especially in high-demand developments.

Potential Snagging Issues

New build properties may have minor issues, known as “snagging” problems, that need addressing after you move in. These might include cosmetic defects or incomplete finishes. As your conveyancer, we can help you identify and resolve these snagging issues, liaising with the developer to ensure necessary repairs or finishing touches are completed to your satisfaction before completion, otherwise it may take months for the issues to be resolved once completion has taken place.

Space

A significant number of developers will develop a high number of properties on one development to maximise the profit, meaning there is usually less space for gardens, parking spaces and smaller room sizes.

Estate Management Charges

Many developments are not adopted by the local council and are managed privately by management companies, meaning the owners will have to pay for the maintenance of the playground and shared spaces via service charge.

Unestablished Communities

When buying in a newly developed area, the neighborhood may still be evolving, leading to uncertainties about the area’s future growth, access to amenities, and the overall character of the community.

Variable Quality

Not all developers have the same reputation for quality construction. It’s essential to research a developer’s track record and reviews from previous buyers to ensure you’re investing in a reputable property. As your conveyancing solicitor, we will perform thorough due diligence, reviewing the developer’s credentials, planning permissions, and any potential legal or regulatory issues related to the property. This process helps ensure you are making a sound investment in a property from a reliable developer.

Reducing the Stress of Your Purchase

Buying a new build home can be both exciting and complex. Engaging a reliable conveyancing partner can provide invaluable support and guidance throughout the transaction. From conducting due diligence and reviewing contracts to handling payments, addressing snagging issues, and registering the property, conveyancing companies play a crucial role in making your new build purchase a successful and stress-free experience. With our expertise, you can confidently step into your modern, energy-efficient dream home.

You can contact our New Home conveyancing team here or call on 01604 936512 / 01908 953674 or email info@franklins-sols.co.uk.

1. Pick the right home for you

Developers and Development Sites vary widely as to how they work, what they offer and the development schemes available.

Before committing to buying a new build property you should research the developer, visit the site and possible speak to some of the residents who have already moved in to their new homes. If you are looking to relocate to a new area, investigate the surrounding area – transport links, schools, amenities and all other local facilities will vary between locations.

The sites sales office should have a range of literature available to you to help you in your decision making process.

2. Finance

If you need mortgage finance to be able to purchase the Property, make sure you consult a mortgage advisor before you get too involved with viewing properties, so as to be sure what your purchase price budget is.  A mortgage advisor will have an in-depth knowledge of the mortgage market as well as any government schemes intended to help homebuyers with a new build property purchase.  You may also want to have a mortgage agreement in principle, so that before you move to the next step you are confident that you can finance your new property purchase. You will need to finalise your mortgage and make a full application after you have successfully reserved your new home.

3. Reserve your new home

Once you have found a property that you want to purchase and have finances in place, you will be able to reserve your new property with the developer and pay the reservation fee.

The reservation fee will be anywhere between £500 and £2000 and will secure the property for you for 28 days. During the 28 day reservation period you will need to progress to being able to exchange contracts. The reservation fee is deducted from the final price when your purchase completes.

4. Appoint your Property Lawyer

The Developer may encourage you to use a Lawyer from their panel of preferred Lawyers – you are not obliged to do so and can choose your own if you wish to.

We would advise that when looking for legal representation that you look for a Law Firm who have a specialist new homes department, such as ours, as we are familiar with the deadlines involved and know how to deal with the extensive development documentation supplied.

5. Pay the deposit & exchange contracts

The deposit payable on exchange of contracts for any property purchase is 10% of the Purchase Price. The deposit will be requested by and paid to your lawyer once all legalities are satisfied (i.e. searches and mortgage offer received, enquiries replied to and all signed documents being in place). The deposit will be paid to the Developer on exchange of contracts, or may be held by the Developers Lawyers where the new home warranty does not cover insolvency of the Developer in order to protect the deposit paid.

6. Make a snagging list

Even with the best developer you should expect some minor snags, for example, doors may get caught on the carpet, tiles may be loose, paint finish needs a second coat, etc. Once the Property is fully built you should be invited to attend a walk around of the property to identify any snagging issues for the Developer to rectify.

If you’re thinking of purchasing a new build property and would like some advice and assistance, please do not hesitate to contact our New Homes team on 01604 828219 and ask for Kris Raca or email newhomes@franklins-sols.co.uk.

There are advantages and disadvantages when it comes to deciding between buying a new build or existing property. You will need to weigh up what factors are most important to you from your list of “must-have” features and which type of property ticks the most boxes for you.

To help you in making your decision, we have put together some pros and cons for you for both new build properties and existing “second-hand” properties.

New Build Properties – Pros

• Incentives – Some Developers will offer “extras” to secure a sale. Incentives are split between financial incentives and non-financial incentives. Financial Incentives could include stamp duty paid, a contribution towards legal fees or even estate agents fees paid if you have a related sale. Non-financial incentives could include carpets and flooring provided, or your kitchen white goods being provided at no extra cost, or even an upgrade to the standard kitchen or bathroom suite installed. The different incentive packages that a Developer is able to offer are often broad.
• Warranties – a new homes warranty will be available on most new build properties, which you don’t always get with a second hand property. New home warranties are designed to offer peace of mind that any defects will be put right and typically last 10 years.
• No chain – You won’t have a chain of buyers above you, which can often take away one of the biggest stresses of buying a home.
• Blank Canvas – a newly built property is a blank canvas with fresh paintwork, tiling, kitchen and bathroom. There should be little that you need to do before you can unpack and enjoy your new home.
• Design you own home – where you buy a property “off-plan” you will be able to pick the Plot that you wish to purchase based upon the design and specification of the property and may also be able to choose kitchen and bathroom layout and pick the fittings from a range of options.
• Low bills – all new builds have to comply with the latest building regulation standards, meaning that they are often more energy efficient than older properties.
• Modern living – Many new builds are built to a high specification which will include the latest technology.

New Build Properties – Cons

• Delays – not everything runs smoothly on a new build property and there can be delays outside of everyone’s control which can cause added stress, increase costs and also prove to be inconvenient where you are trying to plan your move around work, schooling and holidays.
• Snagging – there is often bad publicity in regards to poor quality new build homes. Even with the best developer you should expect some minor snags, for example, doors may get caught on the carpet, tiles may be loose, paint finish needs a second coat, etc. Once the Property is fully built you should be invited to attend a walk around of the property to identify any snagging issues for the Developer to rectify.
• Space – new build properties can often be less spacious than an older property due to the number of properties built on the site. This can often affect storage space within a property, so ensure that your furniture will fit and that you can get your car into the garage/on the driveway.

Second Hand Properties – Pros

• Character – there are plenty of older properties with features such as open fires, stained glass windows, exposed beams, sash windows which all add character to a property. These features often make us fall in love with a new property on an initial viewing.
• What you see is what you get – when you buy a new build property off plan it is often very hard to visualise what the property will look like and how it will feel to live in, but with an existing property you will be able to physically walk around and view the Property and see everything that you will be getting. A surveyor will also be able to attend to carry out a full inspection which will tell you everything you need to know about what you are buying.
• Community – an existing property may be in the heart of an established community, with pubs and restaurants close by and neighbours who have lived in the area for many years who will be able to give you historic background to the local area.
• Space – older properties are generally more spacious with bigger gardens.
• Potential for Alterations – whilst an existing home may not be “perfect” and may need some modernisation and alterations, you have some potential to put your own stamp on it and the ability to increase the value of the Property.

Second Hand Properties – Cons

• Chains – when you buy a second hand property it is likely that the current owner will also be looking to move to a new house, which will create a chain. Where you have a chain the wants and needs of all parties will need to be considered and the more parties involved the longer it can take for everyone to agree on timescales, which can make the move more stressful.
• Energy Efficiency – older properties are less likely to be as energy efficient as newly built properties. This could mean that your energy bills are higher with an older property.
• Maintenance costs – unlike a new build property you can expect an older property to need maintenance. Sometimes maintenance works will be required as soon as you move in.
• Renovations – you may want to carry out renovations and redecorate as soon as you move in, so you will need to budget for these extra costs.

The decision to buy a new build against an existing “second-hand” property will ultimately come down to personal preference. There is no right or wrong choice. Make sure you have all of the information you need before you exchange contracts and that you are buying the home that gives you what you need.

For advice in purchasing a new home, for new builds call our New Homes Teams on 01604 828219 and ask for Kris Raca or email newhomes@franklins-sols.co.uk or for second hand properties, contact our Conveyancing Teams on 01604 828282 / 01908 660966 or email conveyancing@franklins-sols.co.uk.

For further advice and assistance please contact our New Homes team on 01604 828282 / 01908 660966 or email info@franklins-sols.co.uk