Why everyone seems to be buying new builds
New build properties have been increasingly popular. According to UK Government figures, in 2022 Q2 (1 April to 30 June 2022), new build dwelling starts in England were estimated to be 51,730. Whilst buyers can be drawn to brand-new properties, there are a number of considerations to bear in mind.
Figures from the Government show that there was a 21% increase in new builds when compared to 2022 Q1 and a 15% increase when compared to 2021. So why are new builds so popular?
A new home is a blank canvas. Everything about it is fresh – tiling, paintwork, kitchen, bathrooms. This means that there should be very little for the buyer to do. In an ideal world, the buyer moves in, unpacks their belongings and can essentially start enjoying life in their new home.
To entice buyers to new build developments, some developers may well have thrown in extras in order to get a sale. This can include paying the buyer’s stamp duty, covering the cost of carpet, or including appliances such as washing machines and dishwashers.
New builds also need to comply with the latest building regulations. As the cost of living crisis hits many households, new builds are far more energy efficient than older properties and can help reduce costs significantly. In fact, data from Energy Performance Certificates show that over 80% of new homes have the highest A or B ratings, compared to just 2.2% of existing properties.
Some mortgage companies have also introduced “green mortgages” which offer lower interest rates or cashback and larger loans if your home meets a minimum energy-efficiency level.
One of the big incentives for buyers is that new builds come without an onward chain of buyers. Home buyers have also said that they are drawn to the fact that new build properties come with warranties, which you would not get on existing homes.
A word of caution
It must be remembered that as enticing as a new build sounds, there are a few things to bear in mind, covered below. A conveyancing solicitor can provide advice and help to make the processes smooth as possible. Further information can be found here: https://www.samconveyancing.co.uk/
New build properties are often small, as developers try to pack a lot of properties onto a site in order to maximise their profits. If you are looking for space, a new build might not be for you.
Buyers should also look at whether there are any maintenance costs involved. For example, some new build sites come with shared green spaces, but these need maintaining. Who pays for that? Be careful of any hidden extras.
As you begin to live in the property, there will undoubtedly be quality and snag issues, such as doors getting stuck on carpets and fittings becoming loose. To preempt some of these issues, a snagging survey is often carried out on the home. Some problems might be small and cosmetic, however, others might be significant in size, such as underlying structural problems.
Why buy a new build?
There are many positives in buying a new build. It can be much easier, with no chain involved, and your home can be tailored to your needs. Always seek professional advice, to ensure you get the best deal you can.