New build properties divide the market – some people love a fresh blank canvas, while others yearn for the character of older properties.
But regardless of your preferences, buying a new build comes with some real positives. So, let’s look at some of the practical and financial reasons for buying new.
New builds come with financial incentives
February 2024 saw the launch of a new scheme called Own New Rate Reducer, which aims to make it cheaper to buy a new build property.
It’s open to first-time buyers and home movers alike and gives access to lower mortgage rates for an initial period. This is done by using incentive budgets, offered by housebuilders to reduce the monthly mortgage payments for a fixed term. To take advantage of this, you’ll need to use a mortgage broker.
Many housebuilders offer other incentives to tempt you to buy from them. These can include purely financial options, such as part exchange of your old home or a contribution to your deposit or mortgage payments for a set period of time.
But other practical incentives are also often on offer, including provision of flooring and upgrades from the standard kitchen or bathroom. These enticements all aim to help with the initial costs of buying a home, making the choice to buy new a little easier.
New builds – choosing your own fixtures and fittings
For many people, the appeal of a new build home is simplicity. You get the keys, move your belongings in and have nothing to do besides managing the snagging list.
For others, the allure is in the choices available. Depending on when you buy in the build stage, you can often choose your fixtures and fittings.
Whether that’s your kitchen colour schemes, choice of flooring or fitted wardrobes – you can put your stamp on the property before you even move in. And new builds are designed for today’s living, generally having more space with open and multi-functional living spaces.
Energy efficiency ratings in new builds
Another benefit is the energy efficiency offered by new homes. While energy bills are predicted to fall by more than 12% in April of this year, most of us are still feeling the pinch and would like to find ways to pay less.
Data from the Energy Performance Certificates (EPC) shows over 80% of new homes have the highest A or B ratings. This compares with just 2.2% of older properties. With better EPC ratings comes the option of green mortgages, which in some cases can lead to lower rates.
New builds come with a warranty
You might still be hankering after a Victorian cornice or an ornate fireplace, but don’t forget about the potential upkeep that comes with an older home. New builds, on the other hand, come with an added layer of protection.
All new homes come with a warranty, most commonly with the National House Building Council (NHBC) and this is usually applicable for 10 years.
One more benefit…
The final point I’ll make in favour of the new build is the fixed price. You avoid the potential for a bidding war on a property and if you’re a first-time buyer, you can completely avoid the stress of a property chain.
Still undecided about whether to buy a new build?
Whether buying new or buying old, it’s important to consider what you want from a property both now and in the future.
A house purchase is a big decision, and if you do decide to buy a new build then consider using a lawyer who has experience with new build conveyancing, to make the process as smooth as possible.
And finally, speak to a mortgage broker as early as possible to help you navigate the house buying process.
Darren Polson is head of mortgage operations at Aberdein Considine
