To try and tackle the national shortage of property, the government is placing a big focus on new-build homes at the moment; pledging to build one million more in the next five years.
The government is also heavily incentivising the buying of new-build homes. You can buy a new home with a deposit of just 5% using the Help to Buy equity loan scheme, plus, if you’re a first-time buyer, the upcoming Start Homes Initiative will offer discounts of 20% on new homes.
Advantages of buying new-build homes
- Guarantees: New-build homes come with a 10 year NHBC or equivalent warranty covering structural defects. Most developers also provide their own two year warranty.
- Specification: New homes are built to the latest specifications, so major repairs should be unnecessary for the first few years. They also tend to be more energy efficient so you could benefit from lower utility bills.
- Personalisation: If you buy off-plan, you might be able to choose your fixtures and finishes. This is great if you’re attracted to the ‘blank canvas’ element of buying a new build.
- Incentives: The government’s Help to Buy equity loan scheme and Starter Homes Initiative are only available on new homes.
- Ease of purchase: There’s no upward chain to contend with when you buy a new build home.
Interestingly, some house builders run part-exchange (PX) schemes, which allow buyers to purchase a new build home and use their current property as part payment. However, it’s worth considering that while part-exchange schemes remove the hassle of selling your home the traditional way, there can be disadvantages. Some developers will offer you below the market value, so you should always have your own valuations done by local estate agents before agreeing to anything.
At Bourne Estate Agents we are well-placed to provide the very best advice and support to help you move forward with buying your new-build.
For more information or to find out what’s coming soon, contact your local branch today.