Buying a new-build home

Thinking of buying a new-build home?

Hundreds of thousands of new properties are built across the UK every year, so if you're looking to buy a home then a new-build property may well be something you consider.

New-builds tend to be energy efficient, meaning you can often make significant savings on your energy bills (circa £2,500 a year, according to the Home Builders Federation). And as nobody's living in the property, the purchase can potentially be completed more speedily.

However, there are also unique challenges. For example: there's no owner to tell you what it's like to live there; it can be hard to judge if you're overpaying as the house has never been sold before; disputes with homebuilders and developers are not uncommon.

So if you're thinking of buying a new-build home (or if you're in the middle of doing so), see our top tips for making the process smoother, protecting yourself and saving some money.

Tips BEFORE buying a new-build property

• Dig into the developer

• Get a 'mortgage-in-principle'

• Sort a conveyancer early

• Save ££s by haggling

• Will your developer pay your Stamp Duty?

• How much are the management fees?

• Check the property's specifications

• Can you get any freebies or extras chucked in?

• Read (and re-read) your reservation agreement

Tips WHILE buying a new-build property

• Mortgage acceptance can be tricky – consider using a broker

• Read the small print before exchanging contracts

• The 'long-stop' is a very important date

Tips AFTER buying a new-build property 

• Be careful about painting and wallpapering

• Sort a snagging list

• You can complain about a developer/builder

• Check the property's registered with Royal Mail

• Can you cut your council tax costs?

Tips BEFORE buying a new-build property

Before you start thinking about putting in an offer on a new-build property, there's plenty to consider – all of which could impact your decision whether to proceed or not.

Here's a list of things to consider before entering any agreement with a developer.

1. Don't waste money on a cowboy builder

   

   When buying a property, there's often reassurance it's stood there for years, decades, maybe centuries. And you can quiz the owner with your questions.

   But with a new build, you'll be the first person to live there. And it's likely you'll be buying directly from the developer or housebuilder – so you'll be putting a lot of faith in one firm to deliver.

   For this reason, it's important that you background check the developer:

   🔎 Check reviews. A good place to start is HomeViews, where homeowners can share reviews about developers and management companies, as well as about properties and estates. The Home Builders Federation also publishes regular rankings of new-build developers based on homeowner surveys.

   🔎 Is the developer signed up to a code of standards? If so, the developer will be expected to meet a certain level of customer service and building quality. It'll also give you greater protection if you're in a dispute with a developer. There are two main new-build codes in the UK – the Consumer Code for Home Builders and the New Homes Quality Code – and a developer will ideally be signed up to one.

   This forumite's home-buying experience shows why research can be important.

2. Apply for a mortgage 'agreement in principle'

   Not sure if a mortgage lender would accept you? There's a risk that after paying to reserve a new-build property, your mortgage application could be rejected by a lender – potentially jeopardising the entire purchase (and your reservation fee).

   Getting a mortgage 'agreement in principle' (AIP) is a way to reduce that risk. While not a guarantee you'd be accepted, an AIP can be a good indicator.

   AIPs can sometimes be obtained from lenders directly. Alternatively, a mortgage broker can arrange one for you – our Cheap mortgage finding guide has info on brokers, or go straight to a new-build broker like Threshold Mortgage Advice*.

   Our Mortgage affordability calc can also indicate how much you could borrow.

   Important: It's your choice which (if any) broker to use when applying for a mortgage. It's unlawful for developers to force you to use their preferred broker.

3. Sort a conveyancer BEFORE reserving a property

   Normally once you've had an offer accepted on a property it'll take a few months before you're ready to exchange contracts. But with new-builds the time between reserving a property and exchanging contracts is typically much quicker.

   So you should aim to appoint a conveyancer / solicitor – who'll carry out the legal side of the purchase – by the time you reserve a property (and ideally sooner).

   A developer might encourage you to use its partner conveyancing solicitor (if the developer's really pushy about this they could be practising conditional selling, which is unlawful). But the choice is wholly yours. Having said that, a conveyancer familiar with the developer and new-build purchases could speed up the process.

   Be mindful conveyancing fees can vary significantly – from £1,000 up to £2,500+.

   ❌DON'T automatically use the estate agents' firm.

   It's likely commission-based, so use it as a price benchmark initially.

   ✅DO compare a few quotes.

   Get a handful of quotes from Reallymoving.com or Compare My Move. The Law Society's Find a Solicitor tool also has a section on conveyancing.

   It's worth asking friends and family for recommendations too.

   ❌DON'T assume a conveyancer needs to be nearby.

   It's perfectly possible to use a conveyancer from another part of the country.

   ✅ DO check for reviews.

   A string of one-star reviews means you should probably look elsewhere.

   ❌DON'T go for rock-bottom price if you're in a rush.

   Cheaper companies often work in bulk and can be slower, so if time is an issue then pick a firm that responds to emails/calls promptly.

   ✅DO check for hidden extras.

   Ask for a full cost breakdown. Does the breakdown include bank transfer fees, Stamp Duty forms, land registration fees and drainage and environmental searches? Will they charge to verify your ID?

   ❌DON'T automatically use the solicitor who did your divorce.

   Pick a firm that focuses on conveyancing. Just because someone did your divorce doesn't mean they'll be the best choice for conveyancing.

   ✅DO ask if they'll chuck in a will for free.

   Some solicitors will do it for free as they are already being paid.

   ❌DON'T be shy.

   Ensure you fully understand what your legal adviser will and won't do.

   ✅DO check they are regulated by a professional body.

   Solicitors are regulated by the Law Society and conveyancers by the Council for Licensed Conveyancers. Regulation means you've protection.

   ✅DO ask if they've a holiday booked.

   Will the conveyancer be on holiday any time in the coming months? If they'll be away on your preferred completion date, it's best go with another option.

   How to find a cheap solicitor / conveyancer

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4. Save £10,000s by haggling on the property price

   

   Don't automatically assume the advertised property price is non-negotiable – if you think a new-build's overpriced, make this clear and try negotiating.

   You'll have more leverage if you negotiate before reserving a property or paying any fees, but there's no harm trying to negotiate after this (a property's value can change at any time).

   If the property's part of a block or estate where other homes are for sale, check how much they're priced at. If the asking price is higher than the others, ask the developer why. Does the property have a parking space, garage or garden? If it's missing one of these, use this as leverage when negotiating.

   Check what similar properties in the area have sold for recently (past sale prices can be found on Zoopla, Rightmove, the Land Registry). Use this as leverage too.

   Other points of leverage can include properties that are struggling to sell and the end of a developer's financial year (they may be in a rush to sell homes by then).

   A friend bought a new-build that was listed at £249,995. He bought it when it had been finished for a couple of months and it was two months before the builder's financial year-end. He paid £168k. 

   - pinkteapot

5. Ask the developer if they'll pay your Stamp Duty

   Stamp Duty (Land and Buildings Transaction Tax in Scotland, Land Transaction Tax in Wales) is a tax charged by HMRC when you buy a property. It can set you back £1,000s or even £10,000s, though first-time buyers often get some relief.

   Some developers and builders offer to pay Stamp Duty for you, which can help.

   But if you're already overpaying for a property, the benefit of a developer covering your Stamp Duty will be reduced (or even wiped out completely). So check how much similar properties nearby are priced at or have sold for. If they're going for or sold for less, ask the developer to price match and pay your Stamp Duty.

   Full info on how Stamp Duty works in our Stamp Duty guide.

6. Beware: service charges can cost £1,000s a year

   Owning a new-build home often involves having to pay a regular service charge for the upkeep and repair of communal areas like hallways, lifts and roads. Also known as management fees, service changes can easily cost you £100s – even £1,000s – a year, meaning they can really eat into your monthly budget.

   Factor in service charges when thinking about the potential cost of owning a new-build home. Certainly lenders will take these fees into account when assessing a mortgage application, so if there are already questions over your affordability an expensive service charge could limit how much you're able to borrow.

   Before reserving a property, ask the developer about the service charge (or check the property's specifications or reservation agreement). Some key questions are:

   🏢 How much is the service charge and what does it cover? Is buildings insurance included or is it separate? Will the charge cover major works too?

   🏢 Does everyone in the block the pay the same amount? If the service charge differs between properties or parts of the estate then ask why.

   🏢 When must the service charge be paid and how much/often does it rise? Ask if it's paid monthly, quarterly or annually and budget accordingly. The fee is also likely to rise over time – find out how much and often this is typically by.

   🏢 How can I challenge the service charge? In case you're unhappy with the quality of maintenance work or how much the service charge costs or is rising by.

   According to Barclays, only a third of new-build homeowners knew how much service charges would cost them prior to purchasing their property, while only a quarter understood the charge could increase over time – don't make this mistake.

   We found a house we really liked. We paid the reservation fee before looking into service charges in detail. Big mistake. There was a nature trail / large public area next to the development. Service charges exist for its upkeep and now we worry the fee will escalate with no recourse.

   – Moffat_Sea

7. Check the property's specifications carefully

   

   It's important to carefully check a new-build home's specifications, particularly if you're buying the property 'off-plan' (meaning it's not been built yet).

   Physical specifications include materials being used, colours, dimensions, spaces, floorplans, etc, while non-physical specifications include property tenure, service charges, and so on.

   Ask the developer for as many of these details as possible, preferably in writing. If nothing's written down, it'll be harder to verify if the developer has followed through on the plan. It's worth passing this information onto your conveyancing solicitor.

   Use the list below as a specification checklist:

   - Size of property, room and plot dimensions.
   - Tenure details (leasehold or freehold).
   - Energy Performance Certificate rating.
   - Mobility adaption.
   - Service charges.
   - Property price.
   - Warranty details.
   - Estimated completion date (if not already built).
   - Any resale or building restrictions.
   - Any future phases of development.
   - Predicted Council Tax band.

   Important: Promotional material or a showroom visit is not equivalent to checking a property's specifications.

8. Can you get any freebies or extras chucked in?

   Before reserving a property, see if you can nab any extras or freebies.

   What about the show curtains or furniture like sofas, carpeting, tiles – can you keep those? Some developers throw in white goods too like dishwashers and washing machines, which can easily be worth £1,000s from a shop.

   A new-build home is likely to be unfurnished, so anything you can get chucked in to the reservation agreement will help make kitting out your new home less costly.

9. Read (and re-read) the reservation agreement

   

   To reserve a new-build property you'll usually need to put down a reservation fee. This can be anywhere from around £500 all the way up to £2,000-ish.

   Reservation fees are often non-refundable, at best part-refundable. Most developers have a 14-day 'cooling-off' period, meaning you'd get all your money back if you pull out early on but after that it's likely you'd lose your money if you change your mind.

   So before reserving a property, make sure you know exactly what's included in the price. Does it include the balcony? Is there a parking space or a private drive?

   Scrutinise carefully the following details in a reservation agreement:

   - Reservation fee (which should be deducted from the purchase price).
   - Total purchase price.
   - Cancellation rights.
   - Property type, plot number, development name, postal address.
   - Parking arrangements.
   - Estimated building completion date (if buying off-plan).
   - End of reservation period.
   - Service charges.
   - Property tenure (leasehold, freehold, commonhold).
   - Anything you won't own or gain ownership of immediately.

   I had to withdraw from the purchase of a new-build house after paying a £1,000 reservation fee. The developer agreed to refund £500 to me within a few days, retaining £500 to cover their costs. 

   - seanfos

Tips WHILE buying a new-build property

Once you've reserved a property, the purchasing process starts to speed up.

However, there's still plenty to do and ways of saving some serious cash...

1. Use a mortgage broker to ease acceptance

   Soon after reserving a property you'll need to get your mortgage offer sorted. But finding the right mortgage can be tricky, especially if you're buying a new-build.

   Here are two mortgage issues to be aware of:

   • Mortgage lenders can be wary of new-build homes. Some lenders worry new-builds won't retain their value, particularly new-build flats. This means it can be more difficult to get a mortgage, or borrow the amount you need. For example, Nationwide requires at least a 15% deposit for new-build flats.

   • Mortgage offers have expiry dates. A mortgage offer is normally valid for between three and six months. This should be enough if you're buying somewhere that's already been built, but can be an issue if you're buying off-plan. If your offer expires before you've completed the purchase, it's likely you'll need to apply for a mortgage again – meaning another hard check on your credit file, possibly a worse interest rate and no guarantee you'll be accepted.

   Therefore it's best to speak with a mortgage broker. They should know which lenders are better for new-build homes and how long their mortgage offers last.

   Our Cheap mortgage finding guide includes a list of top brokers, or go direct to a specialist new-build broker like Threshold Mortgage Advice*. Before you actually apply for a mortgage have a read of our Boost your mortgage chances guide.

2. Double check all the details before exchanging

   After reserving a property, there'll be a few weeks before you exchange contracts, at which point you'll need to pay a deposit (check how your deposit is protected).

   Make sure you and your solicitor read through the contract line by line and check it tallies with your reservation agreement and any other pre-contract material before exchanging. Take note of any circumstances in which you're able to walk away.

   After exchanging contracts, you and the developer will be legally bound.

3. 'Long-stop' date missed? You're due a refund

   

   If you're buying off-plan, this means the property won't have been built by the time you come to reserving a home and exchanging contracts.

   While building delays won't be inevitable, they aren't uncommon either. Delays not only impact moving-in dates, they can also result in mortgage offers expiring (stressful in its own right).

   So to protect you, the developer must agree to a short-stop and a long-stop date:

   📅 Short-stop date – an estimate of when the property will be built.
   📅 Long-stop date – the date by which the property must be built. 

   Before exchanging contracts, check the proposed short-stop and long-stop dates.

   If you're not happy with the proposed long-stop date – maybe it's too close to the expiry of your mortgage offer – then negotiate a different one before exchange.

   Where the property isn't completed by the long-stop date, you've a legal right to walk away from the purchase and get a full refund (the decision will be yours).

Tips AFTER buying a new-build property

Moving into a property never lived in before can throw up certain challenges.

Here are our top tips if you're about to move in to a new-build:

1. Be careful about painting and wallpapering

   There's nothing stopping you painting and wallpapering the inside of your new home. But be careful if your home has only just been built...

   The National House Building Council (NHBC) recommends waiting between six and 12 months before redecorating a new-build home, to allow it to dry out. Cracks from shrinkage may appear during the first year as the building materials dry out, so the NHBC suggests letting these emerge before starting to paint and decorate.

2. Get yourself a good snagging list

   

   The likelihood is you'll find a few defects or blemishes after moving in to a new-build home. In fact, around 95% of new-build homeowners surveyed in 2023 said they had.

   Where you do find any 'snags', these should be covered by your warranty. You should check the details of the warranty – such as how long it lasts and what it covers – before exchanging contracts, but typically it'll cover:

   👷 0-2 years. Major structural issues, as well as minor blemishes or defects (snags), are normally covered by the warranty for the two years after moving in. 

   👷 3-10 years. Between three and 10 years after moving in the warranty will likely only cover major structural issues (so not minor blemishes or defects).

   It's up to YOU to point out any defects or blemishes to the developer. A good time to do this might be during the pre/post-completion inspection (if there is one).

   Many people check for snags themselves as DIY-ing can be free. To help, compile a snagging list beforehand (a list of things to look out for) – the New Homes Quality Board has a guide to snagging or buy a cheap list from Snagging.org.

   Alternatively, you can pay someone to carry out the snagging inspection for you, but this will cost between £300 and £600. Compare quotes at Compare My Move.

   Developers are normally expected to be fix snags within 30 days. 

   Quick questions:

   Normally after two years of living in a new-build home, developers are only required to fix major structural issues (not snags). This typically includes:

   - Foundations
   - Roofs
   - Ceilings
   - Load-bearing walls
   - Stairs
   - Glazing in outside walls

   Linked issues – like plaster cracks from faulty foundations, leaks from a faulty roof – will likely fall under this classification too.

   A warranty is unlikely to cover general wear and tear to a property, superficial damage or damage caused by weathering (like rain or wind).

   What is considered a major structural issue?

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   What type of issues are unlikely to be covered by the warranty?

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3. You can escalate a developer dispute higher up

   If you've got a complaint about a builder or developer, the first step is to complain to it directly. A developer's complaints process should be clearly signposted.

   Where you're unsatisfied with the developer's response or proposed solution, you should be able to escalate your complaint higher up for free. How to do this depends on the code of standards your developer is registered with – the main codes being the Consumer Code for Homebuilders and New Homes Quality Code.

   Consumer Code for Homebuilders

   If you want to escalate an unresolved complaint with a developer:

   👨‍⚖️ Contact the warranty provider. The provider will try and resolve the problem (details of the warranty provider should be on your paperwork). If it can't or the complaint falls outside its remit, the provider will advise whether you can...

   👨‍⚖️Contact the Independent Dispute Resolution Scheme or Financial Ombudsman. If the complaint is about a breach of the Consumer Code for Homebuilders, the warranty provider will likely encourage you to contact the free Independent Dispute Resolution Scheme. Depending on the type of complaint, the provider might suggest contacting the free Financial Ombudsman instead.

   See this handy PDF guide for more on how to complain about a developer.

   Each year the Independent Dispute Resolution Scheme (IDRS) publishes a summary of disputes between developers and homebuyers it's dealt with.

   The full list can be found on the IDRS website, but below are a few examples indicating what disputes can look like and how they are resolved.

   Case example

   Complaint. A developer refused to fix scratches on a number of windows, despite these being reported by the snagging deadline.

   Defence. The damage to the windows hadn't been reported on time and was caused by the homebuyer.

   Finding. The complaint succeeded and the developer was ordered to apologise and pay £200 in compensation.

   Case example

   Complaint. The ceiling height was lower than that in the show home. The homebuyer said they'd have offered less money had they known.

   Defence. There was no reference to ceiling heights in any of their materials, but the show home reflected the property bought.

   Finding. The homebuyer had been given all the relevant marketing material, but the show home was not an entirely accurate representation. The developer was ordered to apologise.

   Case example

   Complaint. It took more than two months to attend a bathroom defect. The tiles and shower were eventually removed, but not replaced for another year – and the replacement tiles were not a good match.

   Defence. The developer admitted there had been a delay (caused by the pandemic), but the replacement tiles were suitable.

   Finding. The delay was unreasonable and left the homebuyer without a working shower for a year. Compensation of £500 was awarded.

   Case studies

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   New Homes Quality Code

   If you want to escalate an unresolved complaint with a developer:

   👨‍⚖️Contact the New Homes Ombudsman Service. It's free to escalate a complaint to the Ombudsman, which'll consider your complaint along with any evidence you provide. See the New Homes Quality Board website for more information on how to submit a complaint to the Ombudsman.

4. Check the property's registered with Royal Mail

   

   Your new home needs to be registered with Royal Mail. If it isn't registered, your new address may not show up online – making it difficult to arrange deliveries and even take out new build home insurance.

   Before moving in, ask the developer if they've registered the address. If you've already moved in, contact Royal Mail directly.

   When we bought our new-build it took an age for the address to show up on some systems, such as the DVLA where it took six months.

   - RelievedSheff

5. Can you cut your Council Tax costs?

   

   Council Tax will likely be one of your biggest outgoings each month, yet many people unknowingly overpay...

   Are you due a Council Tax discount or reduction? 

   Many people are due legitimate discounts and reductions off their Council Tax bill. These people include:
   
   - Students.
   - Those who live alone (or only with under-18s).
   - Those with a disability or severe mental impairment.
   - People on a low income / benefits.
   
   See our Council Tax discounts guide for more on who's eligible and how to apply.

   Is your home in the wrong Council Tax band? 

   Up to 400,000 homes are in the wrong Council Tax band. Many are older properties, but newer ones can be wrongly banded too. Our Council Tax bands guide has more on how to check your band and challenge if it's wrong.
   

New-build home FAQs