When buying a new-build property, there are several key factors to consider to ensure you’re making an informed decision. Here are some important points to think about:
1. Developer reputation
- Research the developer: Look into the developer’s track record. Have they completed previous projects on time? Do they have a history of good quality builds and customer service? Reading reviews or speaking to previous buyers can be helpful.
- Warranty: New builds in the UK are usually covered by a warranty, such as a 10-year NHBC (National House Building Council) warranty. Check what’s covered and for how long.
2. Location
- Proximity to amenities: Ensure the property is near essential amenities such as schools, transport links, hospitals, and shops – whatever you feel you will need access to.
- Long-term investment: Consider how the area is expected to develop. Are there any planned infrastructure projects or developments that might affect your property value or the local environment?
3. Size and layout
- Room sizes and configuration: New builds can sometimes feel smaller than older properties. Make sure the layout works for your needs, and the room sizes are practical.
- Storage space: Check for adequate storage options, as new builds sometimes lack built-in cupboards or sufficient storage areas.
4. Energy efficiency and running costs
- Energy Performance Certificate (EPC): Ensure the property has a good EPC rating. New builds typically have better energy efficiency than older homes, which can save you money on heating and electricity bills.
- Insulation and heating: Ask about the types of insulation and heating systems used. Modern technologies like underfloor heating, heat pumps, and smart home systems are often included.
5. Building quality and finish
- Standard of construction: While new builds are supposed to meet modern building regulations, there can be issues with finishing or workmanship. It’s worth having a snagging survey carried out (a detailed inspection of the property) before completing the purchase.
- Materials used: Ensure that the developer uses high-quality materials. You can request samples or more information if you’re unsure about particular finishes. We, as your conveyancer, will check to ensure that there is an appropriate clause in the Contract of Sale with regards to the quality of the builder’s workmanship and materials.
6. Pricing and incentives
- Price and comparisons: Research other properties in the area to check if the price is competitive. New-build properties are sometimes priced higher than existing homes.
- Incentives: Developers may offer incentives such as stamp duty contributions, flooring packages, or items of furniture. Consider whether these incentives actually add value for you or if they are just marketing ploys.
7. Legal and financial considerations
- Deposit and mortgages: Make sure you’re clear on the deposit required and whether there are any restrictions, such as the maximum loan-to-value (LTV) ratio that lenders will offer for new builds.
- Conveyancing: Make sure your solicitor is experienced with new-build transactions as these can involve additional considerations, such as checking planning permissions, reviewing contracts, and addressing potential issues with land titles. A new title is being created when the property is sold to you, so we would ensure that the existing title of the development as a whole has no issues.
- Completion dates: Be aware that new builds can sometimes be delayed, so ensure you have a clear idea of the expected completion date and any associated penalties if things run late.
8. Leasehold vs. freehold
- Freehold: This means you own both the property and the land it sits on, which is typically more desirable and offers greater control.
- Leasehold: Some new-builds are sold as leasehold, meaning you only own the property and must pay annual ground rent to the landowner. Check the terms of the lease carefully, as the ground rent can increase over time, and ensure there are no restrictive clauses. Please note that the Leasehold and Freehold Reform Act 2024 bans the sale of new-build houses as leasehold in England and Wales.
- Service charge: Whether your property is freehold or leasehold, many new build developments apply a service charge for a management company to maintain the development (such as a communal area). You should check whether a service charge will apply before you make an offer on a property so that you can budget accordingly. Your conveyancer will also let you know if this is payable in their report to you.
9. Snagging and post-purchase support
- Snagging issues: New homes may have minor issues (such as paint imperfections, plumbing issues, or faulty fittings). Most developers provide a list of items that will be fixed before you move in, but it's wise to carry out your own inspection.
- After-sales service: Ask the developer about the after-sales service and how issues will be handled once you’ve moved in.
10. Resale potential
- Long-term value: Consider the resale value of the property. Some new builds can be hard to sell, especially if they’re part of a larger development or in a less desirable location. Research how similar properties have performed in the market over time.
11. Planning and development of the area
- Future developments: Be aware of any upcoming developments in the area. This could be either a positive (new amenities, transport links) or a negative (increased traffic, noise).
- Community and environment: Look into the general feel of the area—what is the community like? Are there parks, green spaces, and a good quality of life?
Taking time to carefully assess these factors can help ensure that your investment in a new-build property is a sound one.
Our conveyancing solicitors at Stephensons are very experienced in assisting buyers of new build properties, and can guide you through the legalities during your transaction. Use our online quote calculator for a free no obligation quote on our fees or call us on 0161 696 6187.
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