UK New homes buying guide: Ten top tips

Are you thinking of buying a new build home? then read our top 10 ten tips before you make that new home purchase

UK New homes buying guide: Ten top tips

• In this tough market, many housebuilders are offering some great incentive packages to attract buyers. Look around to see what’s available in your area. Many developers will pay your stamp duty, legal fees and moving expenses. Some will even pay your mortgage for a year.

• However, incentives can be a double edged sword. Many mortgage lenders don’t offer their best deals on new-build homes, as they say incentives make it hard to value the unit accurately. Some lenders won’t touch new-builds at all, so shop around for your finance.

• If you are selling a home in order to buy a new-build property, it’s worth considering a part-exchange deal. Most major housebuilders operate them, and although you’ll receive a slightly lower price than the full market value, you are guaranteed a sale and avoid the risk of your chain collapsing.

• Don’t forget that if your combined household income is less than £60,000, you my be eligible for one of the government’s Homebuy schemes. These enable you to buy part of the equity on a new home and pay rent on the rest. You can buy further slices of equity as and when you can afford it.

• If you reserve a new home early in the construction stage, you will be able to choose some of the interior specification. Most housebuilders will offer a choice of kitchen units, flooring, carpets, tiles etc. In some cases you can even specify elements of the home’s internal layout.

• Don’t forget your insurance. If you’re buying with a mortgage, your lender will insist you have buildings insurance valid from the day of exchanging contracts. Many insurers offer significant discounts if you buy combined buildings and contents insurance.

• Make sure any new-build units you are considering are covered by a warranty. Most housebuilders use the NHBC, others available include Zurich and Premier Guarantee. But remember a warranty does not guarantee a defect-free home. If buying with a mortgage, your lender won’t release funds until it has seen the warranty.

• You may want to think about getting your home checked for defects – or “snagged” – by an independent company that does not work for housebuilders. Ideally, this should be done before legal completion, so the developer can rectify any defects before you move in.

• Take a tape measure to your prospective new home and record the internal dimensions – including ceiling height – to make sure your furniture will fit. Pay particular attention to the stairs and door widths, and don’t forget the garage, as these are often designed for small to medium-sized cars.

• Think about timing. If the housebuilder you have chosen is listed on the stock exchange, it will be very keen to sell homes in the run up to its financial year-end. This makes its figures look better to the City, and the builder will probably be more flexible over price at this time, and more open to offers.