New build
New Build Guide
New builds offer modern specifications, lower running costs and a 10-year warranty — but the buying process, financial structure and risks differ from a re-sale. This guide covers what to expect from reservation to two years post-completion.
8 min read · First-draft content — review before publication
Reservation and deposits
- Reservation fee — typically £500–£2,000, holds the plot for 28 days while contracts are exchanged.
- Exchange — usually within 28 days of reservation, with a 10% deposit.
- Long-stop date — the latest date by which the property must be completed. Negotiate this.
What to negotiate
- Stamp duty paid, white goods included, flooring upgrades, garden landscaping, EV charger.
- Plot premiums — corner plots and gardens facing south are usually worth paying for.
- Specification upgrades — kitchens, bathrooms, wardrobes are cheaper at build than retro-fitted.
- Help-to-Buy or part-exchange where available.
Warranties and snagging
Most new builds carry an NHBC, LABC or Premier Guarantee 10-year warranty. The first 2 years cover defects against the builder; years 3–10 cover structural issues.
Get an independent snagging inspection before legal completion. A professional snagger costs £300–£600 and routinely finds 50–150 items the builder is contractually obliged to fix.
Energy and running costs
New builds must achieve high EPC ratings — typically A or B — and from 2025 are built to the Future Homes Standard (no fossil-fuel heating). Air-source heat pumps, MVHR and PV are increasingly standard and meaningfully reduce running costs.
Resale and depreciation
- Expect a 'new-build premium' of 10–15% over equivalent re-sales — this typically erodes in the first 2–3 years.
- Estate completeness matters at resale — buying late in a development is often financially better.
- Service charges on private-managed estates can rise materially. Read the management company accounts.
Use an independent solicitor
Builder-recommended solicitors work for many buyers on the same site simultaneously. An independent firm acting only for you spots adverse plot-specific issues sooner.