Pros and Cons of New Build Properties

The process of buying a new home is exciting, and there are many factors at play. Where do you want to live? How many bedrooms would you like? Do you want a squeaky-clean fresh build or an older home with more character?

For a home to be considered "new", it will usually have to be less than two years old and never been lived in. Before you jump at the opportunity of purchasing a brand-new home, speak to your mortgage lender first, as they will have varying definitions of what is considered to be new build, which can affect your mortgage. Buying a new home often comes with its benefits, but as with everything in life, comes with its drawbacks.

What are the pros of a new build property?

Nobody has lived there before. There is no history; no one else has left their mark. In essence, it is a blank canvas and a clean slate. Many developers will allow you to handpick from a range of fittings, finishes, and flooring. It eliminates the hassle of having to redecorate an older home, say, replacing old carpets.

There are fewer issues during the conveyancing process, since there is no upward chain, and for first time buyers, the tedious process of a conveyancing chain is eliminated completely.

Developers offer good protection in the way of a 10-year warranty. New homes are built according to the latest industry standards, and builders will guarantee their work, so maintenance costs will be kept at a minimum.

Thanks to the latest technologies of modern builds, energy consumption tends to be lower than older properties with dated insulation and double glazing. Homes are now built with energy-saving benefits and are more environmentally friendly

New homes could work out easier on your pocket, with only a 5 per cent deposit required on properties under a certain threshold. You will also qualify for a "Help to Buy" scheme. Developers will also often throw in incentives to sweeten the deal, so you could end up saving a chunk on stamp duty taxes as well.

What are the cons of buying a new build property?

The quality may suffer, as developers are in the game to turn a profit fast. In some cases, they have been accused of compromising quality over quantity, rushing the job to get it completed within a limited time. This can often mean that the new owner risks moving into an incomplete property, and fight the battle to get everything in the order it should have been. If you are one of the first people to move in, you can also find yourself surrounded by ongoing construction as other homes are still being built.

Space can also be an issue. Affordable new homes are often stacked into a property, so they are often less spacious than older, established homes.

Be aware of hidden costs, and double-check the small print with your solicitor. Many new builds have clauses stipulating that you need to pay a shared fee for general maintenance of the estate and communal areas. There may also be fees involved should you want to make any alterations.

When a new build is sold as a leasehold, it means you don't own the land the property is built on. You will have to pay the freeholder of the land ground rent, in addition to purchasing the property. Mortgage lenders do not favour leasehold properties.

Speaking of mortgages, be prepared for possible delays and complications. Developers will paint a pretty picture, but there are often teething problems and unforeseen delays in new builds, which means that your mortgage offer can expire in the meantime.

There are no real previews. You will see your home in a brochure and in print, but you will only actually see it once it has been completed. At this point, you would have already paid the deposit and the mortgage, so there is no backing out.

Ultimately, the decision lies with you, as there is no right or wrong choice when deciding whether a new property appeals to you. New homes often appeal to first-time buyers who intend to enter the property market, but in the end, it comes down to personal preference.