New build properties offer various benefits and are a popular choice for home buyers, particularly those looking to take their first steps on the property ladder.
New builds account for a significant proportion of the UK’s housing stock as supply attempts to meet demand, with the latest figures from the Office for National Statistics (ONS) showing that 210,320 new build properties were completed in the UK for the financial year ending March 2023.
Numerous advantages are associated with buying a new build home, and several government-backed schemes exist for first-time buyers that further entrench their appeal within this demographic.
However, buying a new build home can come with extra challenges and there is higher potential for things to go wrong.
In this blog, our experienced Residential Conveyancers consider the process involved in buying a new build home and highlight some common pitfalls.
What is a new build home?
A new build home is a property that has been recently constructed and has never been lived in before. Some properties that have been renovated to such an extent that little of the original house remains are also defined as new builds.
All sorts of properties can be new builds, including flats and detached houses, and terraces, which are bought when they have just been finished or off-plan (meaning they are being constructed).
Buyers usually purchase a new build home from a developer rather than a private individual.
Why are new builds a popular choice?
Buying a home is a personal choice. Factors such as availability, budget, location, and personal preference impact decision making, with some people preferring new builds and others opting for older properties.
Each type of property has its advantages and disadvantages. A new build property can appeal to buyers for various reasons, including:
- No previous occupants. Many people are drawn to newly built houses as they are recently constructed, and no one has lived there previously. Buyers can often give their input over the final specification of a new build property and choose their own fixtures and fittings.
- Energy efficient. New build homes must comply with the latest building regulations, which means they are far more energy efficient than older properties, resulting in lower heating bills.
- Green mortgages. More than 80% of new homes have the highest A or B Energy Performance Certificate (EPC rating), compared to just 2.2% of existing properties. A higher EPC rating means you could qualify for a green mortgage, offering cheaper rates.
- Conveyancing chain. New build properties are generally bought from a developer, meaning there is no forward conveyancing chain. Fewer links in the chain can make the home buying process less stressful, and buyers don’t risk being ‘gazumped’ or a seller pulling out after they have had an offer accepted.
- Warranties. New build homes usually have a warranty to protect buyers from the costs of any structural defects caused by poor design or construction. If structural issues arise later, the developer may be responsible for repairs.
- Purchase schemes. There are certain government schemes available to help buyers purchase new build homes.
How does the conveyancing process differ on a new build home?
New build conveyancing can be more complex than the process involved in buying an older property and there is more potential for things to go wrong.
At Bowsers Solicitors, our experienced residential conveyancers are specialists in helping clients with the additional challenges that come with buying a new build.
Our team has a wealth of experience buying new build properties in March, Wisbech and across Cambridgeshire, Lincolnshire and Norfolk, and will guide you through the entire process.
To speak to one of our experienced conveyancing solicitors and chartered legal executives today, you can call us on 01945 583194 (Wisbech) or 01354 652606 (March), or email reception@bowsers.co.uk. Alternatively, you can fill in our contact form.
Some of the main differences involved in new build conveyancing include:
- More documentation. There are often high volumes of complex documentation involved in a new build property purchase.
- Tighter time scales. For an off-plan purchase, buyers usually pay a reservation fee to secure the property and developers expect contracts to be exchanged within 28 days. If this isn’t achieved, buyers face losing their deposit and the sale falling through.
- Larger deposit. A deposit of between 10 and 30% of the purchase price is usually required if you are buying a property off-plan.
- Mortgage arrangements. Some lenders are nervous about lending on a property that has yet to be built, meaning it can be more difficult to secure a mortgage. Most mortgage offers last three to six months. If an offer expires before the purchase is complete, buyers may need to reapply, which could delay the process, or even risk it falling through altogether.
- Uncertainty over completion date. It can take a long time to build new properties and construction projects often experience unexpected delays. This may mean it is months, or even years, between a buyer committing to a purchase and finally moving in.
- Extra checks. In addition to the standard searches your conveyancer will undertake during a property purchase, when buying a new build property, a solicitor must review the developer’s contracts, planning permissions, building approvals and warranties.
- Snagging and warranties. Buyers of new build homes must ensure they are suitably protected in case anything goes wrong. This might include writing an appropriate snagging provision into your contract and making sure that all other documentation is in order.
Conveyancers for New Builds Wisbech
Bowsers is a local law firm and is proud to have helped the local community buy and sell properties in March, Wisbech and the surrounding areas for many years.
We are accredited by the Law Society’s Conveyancing Quality Scheme (CQS), a recognised quality standard for residential conveyancing practices. As part of this scheme, Bowsers Solicitors show that they:
- Have the expertise to deliver quality residential conveyancing advice.
- Use standardised processes to recognise and reduce risks.
- Educate clients about what to expect when paying for conveyancing advice.
If you are looking for property law advice, please contact our experienced conveyancing solicitors and chartered legal executives today on 01945 583194 (Wisbech) or 01354 652606 (March), or email reception@bowsers.co.uk. Alternatively, you can fill in our contact form.
