Building a new home is exciting but needs planning and understanding. Whether you’re a first time buyer or moving from an existing property, buying a new build gives you the chance to create a space just for you. Here’s a step by step guide to getting a new build house built.
1. The Buying Process
When buying a new build, the process is different to buying an existing property. Here:
- Reservation Agreement: You’ll pay a reservation fee to secure your chosen property. This fee is often refundable if the sale doesn’t go ahead but check the terms.
- Exchange of Contracts: Once your conveyancing solicitor has reviewed the legal documents and your mortgage is in place you’ll exchange contracts with the developer’s solicitor.
- Reservation Period: You have up to 6 months to complete the purchase but this can vary.
- Planning for Delays: Know the long stop date (the deadline for the build to be completed) so you’re not surprised.
2. Choosing the Right New Build
New build properties range from houses to flats within a development. Consider:
- Location: Is the area right for your lifestyle?
- Developer Reputation: Check out other developments by the same builder.
- Build Warranties: Make sure the property is NHBC (National House Building Council) warrantied or equivalent for extra peace of mind.
- Energy Efficiency: New build homes are designed to meet the latest building regulations so are more energy efficient than older properties. Look for an energy performance certificate to confirm this.
3. Financing Your New Build
Budgeting is key when getting a new build house built. Costs to consider:
- Purchase Price: Check if stamp duty applies and factor in legal fees and ground rent.
- Mortgage Lender: Check your lender accepts mortgages on new builds especially if you’re buying off-plan.
- Management Fees: Flats and some homes in new developments may have service charges or management fees.
- Energy Efficiency Savings: Energy efficient features will save you money on utility bills in the long run and add value to your investment.
4. Customising Your New Build
Buying a new build house often means you can choose the fixtures and fittings so it’s personal to you.
- Show Homes: Visiting a show home will give you a clear idea of the finished build and quality.
- Snagging Survey: Once the build is complete do a snagging list to identify defects for the developer to fix.
- Off-Plan Purchases: If buying off-plan make sure all details, including materials and room sizes, are in the contract so there’s no dispute.
5. Professionals
Professional help is key during the buying process:
- Conveyancing Solicitor: A good solicitor will make the legal process run smoothly, review the reservation agreement, planning permissions and new build warranties.
- Sales Team: Developers’ sales teams can guide you through the process but remember they represent the developer’s interests.
- Surveyors: Independent snagging surveys are recommended to verify the quality of your build property.
6. Moving In
As the build gets close to completion prepare for the next stage:
- Move In Date: Get a timeline from your developer but be flexible if there are delays.
- Stamp Duty: If applicable pay stamp duty before you move in. First time buyers may be exempt.
- Other Property: If you’re selling an existing home align its sale with the new build completion date.
7. Why New Builds
New builds have many benefits that make them so popular:
- Modern Features: Energy efficient design, smart technology and built to latest building regulations.
- Build Warranties: Structural defects for the first 2 years and extra protection for up to 10 years.
- Low Maintenance: New homes don’t require immediate repairs like older properties.
New Builds vs Older Properties
One of the biggest decisions when buying a home is new build or older property. Older properties may have character and established areas but new builds have modern layouts, energy efficiency and built to latest building regulations. The build warranties that come with a new build house gives you peace of mind as it covers structural defects for the first 2 years and beyond.
Costs for New Developments
New developments often have costs beyond the purchase price. Be aware of service charges, ground rent and management fees especially if buying a flat. Tell your mortgage lender about these costs when they calculate your affordability. Stamp duty applies to most properties but first time buyers may be exempt so it’s less of a cost for your new build home.
Buying Off-Plan
Buying off-plan is great for first time buyers and investors. Buying before the build is complete means you can get a property at today’s prices which can be beneficial if prices increase in the next few years. But make sure you review the long stop date in the contract to make sure the developer meets the completion dates for the build.
Snagging Lists and Surveys
Once the build is complete do a snagging survey before you move in. A snagging list highlights any issues with the property the developer needs to fix. This ensures your new home meets the high standards promised during the buying process. Many developers will refund your reservation fee if the snagging list reveals major issues but always check this policy.
Flats vs Houses
New developments often have a mix of houses and flats to cater for different needs. If you’re building a flat you need to consider shared spaces, ground rent and service charges. Houses in a new development have private gardens and no management fees so more independence for families and long term owners.
Planning for the Future
When getting a new build house built think about how the property fits into your future plans. For example will it meet your needs for the next stage of your life or be flexible for changes. Some buyers may want to upsize in the next few years while others may prioritise energy efficiency and low maintenance for long term living. A show home can give you ideas on how you can personalise your new home to suit these plans.
Other Developments
If you’re not sure about committing to a specific property it can be helpful to look at other developments by the same developer. This will give you examples of completed builds and an idea of the quality of their work. Visiting an open market will also give you an idea of how new properties compare to older ones in terms of price and features.
New Build Warranties
When buying a new build home you need to understand the new build warranties. These usually include a 2 year developer warranty for defects in workmanship and a 10 year structural warranty. Having this cover gives you peace of mind especially for first time buyers who may not know what to expect in a new build property. Always check the developer is registered with a recognised warranty provider such as the National House Building Council (NHBC).
Energy Efficiency
One of the biggest benefits of a new build house is the focus on energy efficiency. New homes are designed to meet or exceed the latest building regulations with energy efficient insulation, double glazing and modern heating systems. These features reduce your environmental impact and your bills so the property is more cost effective in the long run. When looking at new properties ask for the energy performance certificate to make sure the home meets your requirements.
Choosing the Developer
Choosing a reliable developer like Proable Group is key when getting a new build house built. Look for a developer with a good reputation and positive reviews from other buyers of their developments. Visiting their show home will give you an idea of the quality and style they offer. Also ask about their warranties and how they deal with snagging issues. A good developer will ensure the build is completed to a high standard and on time.
Reserving Your New Build
Reserving a property in a new development involves signing a reservation agreement and paying a reservation fee. This will secure your chosen home for a set period of time to allow you to sort out your finances and complete the buying process. Before signing make sure the agreement outlines the property price, build spec and move in date. A good solicitor can review the terms to avoid any surprises later.
Open Market
While new builds have modern features and energy efficiency it’s worth comparing with the open market. Older properties may have bigger plots or established areas while new homes have lower maintenance and build warranties. Weigh up the pros and cons based on your priorities whether it’s location, price or long term value.
Service Charges
When buying a flat or a property in a managed development be aware of service charges and management fees. These fees cover the upkeep of communal areas and facilities but can vary greatly between developments. Before you buy ask the developer’s sales team for a breakdown of these costs and factor them into your budget. If ground rent applies make sure you understand the terms and how they may change in the future.
What if I need to sell?
If your circumstances change in the next few years selling a new build can have its challenges. While the energy efficiency and modern layout are great selling points, property prices in new developments will stabilise after the initial release. Make sure your home stands out on the open market by keeping it well maintained and addressing any snagging issues quickly.
Legal Fees and Stamp Duty
Legal fees and stamp duty are key costs when buying a new home. A good solicitor will guide you through the conveyancing process and ensure all legal aspects of the purchase are smooth. If stamp duty applies make sure this is in your budget. First time buyers may be eligible for reduced or no stamp duty on homes up to certain thresholds making the purchase more affordable.
Conclusion
A new build house means a blank canvas in a home designed for you. While there are many stages from reserving to completing the snagging list planning and professional advice will make the process smooth.
With energy efficiency, customisation and new build warranties new homes are a great choice for many buyers. Whether you’re a first time buyer or moving from an older property your dream home could be just a few steps away!
