New Build Homes in London: A Comprehensive Guide for Property Buyers

REM Team
Apr 5, 2023
3 min read

When it comes to buying property in London, new build homes are a popular choice. They offer a range of benefits, from modern amenities to energy-efficient features. However, with so many new developments popping up across the city, it can be difficult to know where to start. In this comprehensive guide, we'll explore everything you need to know about buying a new build home in London.

Why choose a new build home?

New build homes offer a range of benefits over older properties, including:

Modern design: New build homes are built with modern living in mind, so you can expect open-plan living spaces, large windows, and plenty of natural light.
Energy efficiency: New build homes are built to strict energy efficiency standards, meaning you can expect lower energy bills and a reduced carbon footprint.
Fewer maintenance issues: As new build homes are built with new materials and modern technologies, you're less likely to encounter issues with things like plumbing, electrics, and heating.
Warranty: New build homes come with a warranty, usually lasting around 10 years, which gives you peace of mind that any issues will be fixed free of charge.

What to consider when buying a new build home

When it comes to buying a new build home, there are several factors to consider:

Location

Location is always a key factor when buying a property, and it's no different when it comes to new build homes. Consider factors such as transport links, local amenities, and the overall vibe of the neighbourhood.

Developer reputation

Research the developer before you buy. Look at their track record, read reviews, and check out their other developments to get a sense of the quality of their work.

Timing

New build homes often have staggered completion dates, so consider when you want to move in and whether the development will be ready in time.

Finances

Buying a new build home can be more expensive than buying an older property, so make sure you have a clear understanding of the finances involved. Consider the deposit, mortgage payments, and any additional costs such as service charges.

The buying process

The buying process for a new build home is slightly different from buying an older property. Here's what you can expect:

Reservation fee

You'll usually be asked to pay a reservation fee to secure the property, which is typically around £500-£1000.

Exchange of contracts

Once the property is built, you'll exchange contracts and pay a deposit, usually around 10% of the purchase price.

Completion

Completion usually takes place a few weeks later, and you'll pay the remaining balance and receive the keys to your new home.

Pros and cons of buying a new build home

While new build homes offer a range of benefits, there are also some potential drawbacks to consider:

Pros

Modern design
Energy efficiency
Fewer maintenance issues
Warranty

Cons

Can be more expensive
May lack character and history
May be located in a less established neighbourhood

FAQ

1. Do new build homes hold their value?

New build homes can hold their value well, but this depends on a range of factors including location, quality of build, and demand.

2. How long does the buying process take for a new build home?

The buying process for a new build home can take several months, depending on factors such as completion dates and financing.

3. Can I negotiate on the price of a new build home?

It's often possible to negotiate on the price of a new build home, particularly if you're buying early in the development process.

4. Are new build homes more expensive to insure?

New build homes can sometimes be more expensive to insure due to their higher value and the fact that they often have more modern and expensive fixtures and fittings.

5. What is a snagging survey?

A snagging survey is a detailed inspection of a new build home that identifies any defects or issues that need to be addressed before you move in. It's important to have a snagging survey carried out to ensure that any issues are fixed before they become bigger problems.

Conclusion

Buying a new build home in London can be a great investment, offering a range of benefits including modern design, energy efficiency, and fewer maintenance issues. However, it's important to do your research and consider all the factors before making a decision. By following the advice in this guide, you can be confident that you're making an informed decision and choosing the right new build home for you.