New Build Properties: What First Time Buyers Need to Know
New build properties have a particular appeal for first time buyers, everything is brand new, you don't have to deal with anyone else's poor DIY, and there's typically no chain to navigate. Many developers offer incentives like contributions to your deposit or covering legal fees, which can make new builds feel like an attractive route into homeownership.
But buying a new build comes with its own set of considerations that don't apply to older properties. Here's what you need to know before you commit.
The buying process is different
Buying a new build often starts with a reservation fee, typically a few hundred to a couple of thousand pounds, paid to the developer to take the property off the market. This is usually deducted from the purchase price at completion but is non-refundable if you pull out.
The developer will set a tight timeline for exchange, often 28 to 56 days from reservation. This puts pressure on you to instruct a solicitor quickly, get your mortgage application moving, and respond promptly to enquiries. If you miss the developer's deadline you can lose your reservation and your fee.
If you're not familiar with how conveyancing works, our guide to the conveyancing process covers what to expect at each stage.
Buying off-plan
Many new builds are sold off-plan, meaning you commit to buying before the property is built. You're working from floor plans, computer renderings and a show home, not the actual property you'll move into.
Buying off-plan has potential benefits, you can sometimes secure a price before market increases, and you may be able to choose finishes and fixtures. But there are risks too. The build might be delayed by months or even years and the finished property might differ from what was advertised. Your mortgage offer might expire before completion, requiring a fresh application at potentially higher rates.
If you're considering an off-plan purchase, ask the developer specifically about expected completion dates, what happens if the build is delayed, and what flexibility you have on finishes and layout.
Snagging is essential
Snagging is the process of identifying defects in a new build property, from minor issues like poor paintwork or scratched fixtures through to more significant problems with plumbing, electrics or fittings.
You should arrange a professional snagging inspection before legal completion if possible, or as soon as you have access to the property. Independent snaggers will produce a detailed report which the developer is then expected to address. Don't rely on the developer's own quality checks, independent snagging consistently identifies issues that haven't been picked up internally.
The earlier you flag snagging issues, the easier and often quicker they are to get fixed. Some defects may be covered by your warranty (more on that below), but it's far better to have them resolved while the developer is actively engaged with the property.
Warranties
New build properties typically come with a 10-year warranty, most commonly the NHBC Buildmark Warranty. This covers structural defects in the first two years and major structural issues for the remaining eight. It does not cover everything and the level of cover reduces over time.
Read the warranty carefully and understand what's covered, what isn't, and how to make a claim if you need to. Keep all paperwork in a safe place because you'll need it if anything goes wrong.
Service charges and estate management fees
Many new build estates include shared spaces like green areas, play parks and private roads that are managed by an estate management company rather than the local council. This means residents pay annual estate charges on top of any council tax.
These fees can be a few hundred pounds a year and tend to increase over time, sometimes significantly. Ask the developer specifically about current and forecast estate management fees, what they cover, and whether there's any cap on increases. This is information that's easy to overlook but adds to the long-term cost of ownership.
Negotiation is possible
Many first-time buyers assume new build prices are fixed, they aren't. Developers are often willing to negotiate, particularly towards the end of a financial quarter or year, or when a development has a number of unsold units. Even if they won't move on price, you can often negotiate on extras like flooring, appliances, contributions to legal fees, or stamp duty contributions.
Read our guide to how to negotiate on a house price for the full approach.
The full checklist
The Home Truths Guide includes a dedicated checklist for buying a new build property, covering specific questions to ask the developer, your solicitor and your mortgage adviser at every stage.
Image by Josh Olalde on Unsplash