Is buying a new home a good move financially, or should you steer clear?
By Gordon Miller
The government has committed to a programme of building three million new homes by 2020 – that’s around 250,000 a year for the next 12 years – but in early 2009, National House-Building Council (NHBC) statistics indicated that less than 100,000 new homes will be built. And, in 2007, around 160,000 new homes came on to the market but around 145,000 were sold.
New builds should be streets ahead in terms of innovation and eco-friendliness. 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.’
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.’
Tell us about where you live, & see if your area makes the top (or bottom) 20
Compare current rates on loans, savings accounts, credit cards & mortgages with this handy tool.jpg){kind=small}
Our presenter could be popping round to your house for a consultation and a cuppa
.jpg)
Your Comments
Post your comment
Please note: In order to post a comment you need to be registered and logged in to Channel 4:
Sign In Here or Register Here
Comments closed
Comments are closed at the present time
Comments
Thank you for your comment!
Your message will be reviewed and the best ones will be published below.
If you intended to make an official comment to Channel 4 please contact us.