Should You Buy A New Build?

There are plenty of deals around to encourage you to buy a newly built flat or house. But is buying a new build a good way to maximise your budget?

By Gordon Miller & Sarah Warwick

As all those trying to get on the housing ladder or trade up to a bigger property will know only too well, although average UK house prices have retreated from their peak of 2007, they have regained ground.

However, when you look at the cost of buying a new build rather than a previously owned property, what you might need to spend looks a little different. The average price paid for a new property in the UK over the year to April 2011 was £196,434, while the average price paid for a pre-owned property over the same period was £205,072, according to the government’s house price index . So with new builds appearing to be a better value buy, should you be buying new?

What Are The Benefits Of New Builds?

You Don't Have To Redecorate Buying a new build can be very appealing. You can often choose decor, kitchen units and appliances, as well as other finishes when you buy, so you don't have to budget for redecorating to create a home that's to your taste rather than the previous owner's.

Build Quality Should Be Good You don't have to wonder about the quality of a previous owner's DIY efforts, either. Most new homes are covered by an NHBC warranty and insurance cover. NHBC standards provide technical benchmarks for the home's construction, and its Buildmark warranty means you are insured against defects and damage (but not things such as condensation, wear and tear, normal shrinkage and so on).

The Chain Will Be Short Moving into a brand-new home also means a shorter chain of housemovers. If you have a property to sell, you're still subject to the chain that leads to your buyers, of course, but you're not waiting for someone to move out, who in turn is generally dependent on other people. There are also part-exchange schemes for new builds, so you could avoid this hassle, too. Find part-exchange schemes at Smartnewhomes.

Interior Layouts Will Be Well Designed A well-designed new build can also offer layout and room options you might have to alter an older property to achieve. Kitchens big enough to eat in, open-plan living areas, more bathrooms and so on can all mean you won't need to spend extra money once you've moved in.

Energy Issues

Another potential upside of buying new is the house or flat's energy efficiency. Built to adhere to the current building regulations, new homes should help you save money on your fuel bills.

Simon Wright, chief executive of Simon Wright Homes, picks up on the innovative and eco-friendly aspect of buying new. 'Most new build houses are now being built to level three of the Code for Sustainable Homes, a code which assesses the sustainability performance of a property across nine design categories including energy, water, materials, waste, pollution and ecology. Therefore, new homes are much more energy-efficient than second-hand properties, which is not only good for the environment and for reducing bills, but will help with their resale value as the government continues to push for more energy efficient housing.'

Are New Builds Priced Higher?

If you asked your mates if they would consider buying a new build house the answer would be much like asking whether or not they like Marmite: half would love it and the other half would hate it. There's no in-between, it seems. Why should that be? After all, by comparison, you almost never hear people say: 'Yes, I can afford a new car but what I really want is a second hand one.' So, is the price of 'new versus old' the deciding factor?

Bill Gair of Urban Renaissance Villages, builders of Bramshott Place Village in Liphook, Hampshire, says, 'New homes, in a normal market, tend to cost more and maintain high re-sale values for the same reason that new cars cost more - because they are new. Buyers prefer them as no one has lived in the property before, and there are no hidden DIY-nasties.'

Piers Banfield, sales and marketing director for Banner Homes, says, 'The market demands a premium [because] there is an undoubted kudos to owning a new home and people will pay for that. New homes come with new carpets, new appliances and the knowledge that the buyer will not have to spend any more money on DIY or modifying the property. New homes are also the only ones that come with a guarantee and people are aware of the value this represents.'

But not all developers agree that new costs more than old. Matthew Byatt of Newhall Projects, who are the developer behind the innovative design- and eco-led new homes at Newhall, Harlow, says, 'New homes do not always cost more - there is obviously a premium because you are the first to own the property, but equally a second hand home can have had a complete makeover prior to coming onto the market and therefore demand a higher price.'

'New homes often cost less than their second hand equivalent as the surrounding landscaping might not be mature and the home might still be in a building site. Buying new gives a purchaser peace of mind because of the warranties and guarantees associated only with new build homes. They are also likely to have all the cutting edge, lifetime homes and/or eco-friendly essentials that current buyers expect as well as AA rated appliances.'