What Every Buyer Needs to Know About Buying a New-Build Property

New-build properties are increasingly popular among buyers, offering clean, fresh-start homes. For first-time buyers, upgraders, and investors, they provide a modern option to enter or re-enter the property market. But what should you know before purchasing a new-build?

This is our guide to everything you need to know about buying your new-build property. From financial commitments to legal considerations, PLS Solicitors is here to help, every step of the way.

What is a New-Build Property?

A new-build is a property constructed within the last two years and has never been occupied. These homes are typically found in new developments and range from starter flats to family homes. Many developers allow for “off-plan” purchases, where buyers secure their property before it is completed. Off-plan purchases offer the flexibility to choose interior finishes but require a bit of patience as construction continues.

Why Choose a New-Build?

Modern Design and Efficiency: New-builds often have better energy efficiency, which can lower monthly utility costs.

Personalisation: Many developers allow buyers to select finishes, fixtures, and even layout options, creating a space that suits their style. According to a 2023 study by Home Builders Federation, “energy bills for new homes are on average 55% cheaper, saving households £135 on monthly running costs.”

Warranties: Most new-builds come with a 10-year structural warranty from organisations like the NHBC (National House Building Council), covering structural issues.

Sound good? Here’s how you can get the process started!

How to Start the Buying Process?

  1. Research the Developer and Property: Choosing the right new-build property can be very difficult. Reputation matters, so if you wish you can look for reviews, check out previous projects, even visit other developments they’ve completed. A reliable developer should offer quality homes with long-term value.

Once you’ve chosen the right development, give PLS Solicitors a call and we will conduct essential searches to uncover any potential issues and perform local authority checks, environmental searches, and drainage/water checks before any contracts are signed. You’ll likely want to investigate the property yourself too. If the property has already been built, feel free to skip the next steps below and go straight to step 4.

  • Off-Plan Buying: Some developers will begin the property sales before the construction project is completed. With Off-Plan buying, you secure the property before or during construction. It comes with a degree of uncertainty, but has advantages too, such as being able to choose finishes, fixtures, or layout options. Typically, you’ll pay a reservation fee (around £1,000), after which contracts are drawn up and a completion date set.

If you are buying Off-Plan, PLS Solicitors will help you to check development plans, assess potential delays, as well as verify the estimated completion date and whether there are any future stages of construction that could affect your new home.

  • Plan for Delays on Off-Plan Purchases: Delays in construction are not uncommon. These can be due to various factors such as supply chain issues, weather conditions, or construction problems. Ensure you have options for accommodation during this time. You should also make sure your mortgage offer is valid until the property is ready for occupation, as mortgage deals typically last for 6 months.
  • Understand the Financials: Costs like stamp duty, developer fees, and mortgage specifics are essential to consider. Stamp Duty applies as it would with other properties, though first-time buyers may qualify for relief. Some new developments with amenities come with ongoing maintenance fees. There are buying schemes available specifically to help those looking to purchase a new-builds, such as  the First Homes Scheme or you could take advantage of a Shared Ownership Scheme.
  • Know Your Rights and Warranties: Most new-builds come with the 10-year NHBC warranty, covering major issues. Many developers also offer a “snagging” period within the first few months of moving in, where they’ll rectify any outstanding issues for free. This covers minor accidental or incidental issues, or “snags”, like door handles that don’t work properly or uneven flooring. PLS Solicitors will conduct a snagging inspection for you, and help to resolve them with the developer before you take ownership.
  • Get Advice From the Experts: A conveyancing solicitor is essential for managing the legal details, from contract review to documentation. They can help safeguard your interests, particularly when it comes to warranties and fine print. Want to know more about exactly what we do to help people manage their new-build purchases? Submit an enquiry form here.

Long-Term Considerations

After the purchase, it’s wise to keep all records of inspections and communications, and you can even register them with HM Land Registry to create backups. PLS can keep those records organised for you during the sale to give you the time you need to focus on more important details.

With guidance from our SRA and Conveyancing Association accredited team, you can be confident in every step of the buying process. For a quote reach out to PLS Solicitors, Monday – Saturday, on 03300 565 423 or complete one of our online enquiry forms.