The benefits of buying a new-build home
In 2017, the government declared that to counter the current housing crisis, the UK would have to commit to building 300,000 new homes per year. As a result, South West London and Surrey have seen many developments spring up, catering for everyone from first-timers hoping to sign up for help-to-buy schemes to those looking to indulge themselves in wall-to-wall luxury.
But where to start? As with any property search, location is key. Large developments may be out of town, and it’s important to understand accessibility, public services, commuter times and so on. There may not yet be neighbours to chat with about the area, so it pays to be meticulous in your research.
Talk to the estate agents and development team, who will be able to give you plenty of local information – and should one particular development not feel right, they will be happy to aid your search in other areas.
1. Financial benefits
Buyers may not be aware that there are government incentives to encourage those looking to buy a new build. Interest-free loans worth up to 20% of the property’s price are readily available, meaning you will only need to immediately find a 5% cash deposit (and a mortgage to cover the rest of the cost). Fees on the 20% loan are not charged for the first five years, and should you buy in one of the London boroughs, up to 40% of the purchase price is available (visit: helptobuy.gov.uk).
For new homes and developments in Surrey & SW London, click here
2. Design input
Buying off-plan often means would-be homeowners can have a say in their new dwelling. Whilst this may not include autonomy over, say, room sizes or floor layout, it often means you can select your floorings, kitchens and bathrooms, and a colour scheme. However, a range of new developers is entering the market, straddling the worlds of new and self-build, called ‘custom build’, which offers a more bespoke construction service.
3. Fixtures and fittings included
For first-time buyers, this can be a great saving. As mentioned, carpets/flooring etc., are regularly part of the deal, but some firms offer further enticements, including kitchen appliances, light fittings etc. Again, research; see what other developers may be promoting, as a little negotiation can sometimes go a long way.
For help securing high-value mortgages, we recommend involving Mesa Financial, who are five-star mortgage brokers in London. Get in touch.
4. Peace of mind
New homes typically have a 10-year warranty, meaning any snags or defects will be rectified. The builder or developer takes out the policy designed to protect the buyer. Three main providers operate under the Consumer Code for Home Builders: the National House Building Council (NHBC) is by far the largest, but others include Premier Guarantee and Local Authority Building Control Warranty (LABC). See more.
Other providers operate under different codes, so research and know where you stand before you sign. If you have bought off-plan, the warranty ensures your deposit will be protected should the developer go bust. Once built, the warranty covers two aspects: the defects insurance period (typically 24 months), which would cover heating, plumbing and so on, and the structural insurance term (years three to 10), which consists of major faults such as load-bearing walls, roof problems etc.
5. Green credentials
New homes are more energy efficient and are built with sustainability in mind. Many developers recycle site waste and are keen to use greener building materials. Thanks to state-of-the-art insulation materials, walls on new builds can offer an energy-efficient rating of up to 65%, leading to significant savings (some claim up to £1,000) on annual heating bills. Windows and doors, too, are a higher spec than those used in older homes, which will save you money and help you do your bit for the planet.
