Over the years, new build housing developments have become increasingly popular, yet there are still a few common misconceptions about them. Here, we’ll clear those up and highlight the real benefits of choosing a new build home.
- Are new build homes good value for money?
- Are new build homes good quality?
- Can I add character to my new build?
- Will the area around my new home be a construction site for years?
- Do I have to pay Stamp Duty on my new build?
- Will there be a sense of community in the development?
- Will a new build be big enough?
Are new build homes good value for money?
It’s long been believed that new build homes cost more to buy than older properties. However, prices depend on a range of factors, including size, location, plot size, etc. so while some new builds may be more expensive, this is not a one-size-fits-all situation.
It’s also important to consider the range of schemes available to buyers to help with the costs of buying a new build home. Help can come from many sources, including the government and developers. Aid from the government can come in forms such as:
- First Homes Scheme: offers new build homes at a discount (typically 30-50%) to local first-time buyers, with the discount remaining on the property for future sales
- Shared Ownership: buyers can purchase a share of a new build home, paying rent on the remaining share to a housing association or developer.
- Lifetime ISA: a savings account where the government adds a bonus to help people save for their first home (or retirement).
Alternatively, private companies, such as developers and mortgage lenders, can offer help including:
- Own new – rate reducer: a private scheme offered by lenders in partnership with house builders, designed to lower mortgage interest rates for new build homes.
- Deposit unlock: a private scheme allowing buyers to purchase a new build home with a minimum 5% deposit, with the help of a mortgage guarantee provided by the housebuilder.
- Rent to Buy: a scheme which allows you to rent a property for a period with the option to buy it later, with some or all of the rent potentially contributing to your deposit.
It is also important to think about ongoing costs associated with a property. New build homes are widely acknowledged to be much cheaper to maintain, with improved energy efficiency keeping bills lower. Maintenance tends to be lower thanks to the nature of a new build home, however, should something go wrong, homeowners are well protected. In the first two years, developers are responsible for repairing any defects, while a 10-year insurance policy covers any structural faults in the build.
Are new build homes good quality?
Modern new build homes are designed and constructed to meet the latest building standards, meaning they often exceed the quality and energy efficiency of older properties. Developers must build properties to a strict set of regulations and meet modern standards throughout their projects. This holds them accountable and ensures the high quality across all their developments.
It’s also important to note that no one will have lived in the property before, so you don’t have to worry about wear and tear, or any issues left behind by previous residents.
Quality isn’t their only priority, they must also meet safety regulations. Fire safety is now at the forefront of every development, ensuring the safest, most efficient materials are being used to keep heat in while preventing the spread of flames.
And if that’s not reassuring enough, as previously mentioned, you have a 10-year insurance policy to quickly fix any issues arising from your home. This means you won’t be paying out of your own pocket for issues you haven’t caused. Generally, this policy includes a two-year “defect period”, to cover non-structural issues like plumbing and electrics, followed by eight years of structural insurance to fix any major structural issues with the building.
Can I make my new build characterful?
Well, really, this comes down to you. When buying a new build, you are buying a blank canvas to make your own! You can do this in partnership with some developers, depending on when you buy your property. If you buy early on, off-plan, you can often submit your own preferences for appliances, finishing touches and even paint colours.
If you haven’t bought your property early enough, not to worry! You can customise your space however you choose. With so much inspiration available from Instagram, Pinterest and interior designers and landscape designers, the possibilities are endless.. You can even find inspiration on the OnTheMarket blog here: How to add more character to a new build – OnTheMarket Content Hub.
Will the area around my new home be a construction site for years to come?
If you’re among the first to move into a new development, you’ll get the advantage of choosing the best plots and being part of shaping a brand-new community from day one. Some developments may still be under construction but this phase quickly passes, and you’ll already be enjoying your new home.
Do I have to pay Stamp Duty on a new build home?
Unfortunately, new build homes are not exempt from the Stamp Duty Land Tax and any property above £125,000 is liable for payment (different rates depending on the value). However, it is worth checking with the developer you are buying from as some may offer a Stamp Duty incentive, either paying a proportion of the tax or, in some cases, the whole thing.
Will there be a sense of community in the development?
New build communities are known for their welcoming atmosphere, with neighours often moving in at similar times ad building new friendships together, creating a sense of community. Developers also plan with community in mind – adding green spaces, local amenities and easy access to transport links.
Developers can also help to create a sense of community. They also consider community aspects during the planning and building stages, including local schools, green spaces and public transport links.
Similarly to adding character to a new build, you get out what you put in. If you’re willing to put the effort into your neighbourhood, you will reap the rewards.
Will a new build be big enough?
Once again, there is no one-size-fits-all narrative when it comes to the size of a new build property. Each development will have a range of options to choose from, as will each developer. While some developments will focus on 1-2 bedroom flats, others will provide larger houses with multiple bedrooms and extra space. So, whether you need that extra space for entertaining friends, stretching out with a bit of yoga or just enjoying time with your family, be sure to explore your options.
From great quality to fantastic amenities, community living and long-term savings, new build homes offer something for everyone. So, take a look at what’s available in your area today on OnTheMarket.com.
