So, Are New Build Houses Worth Buying?

Fresh, yes. Clean, too. But are new build houses worth it?

In Britain, finally, we are building more homes. We don’t yet build enough – the government has said that by the mid-2020s we should have 300,000 new build houses up and running on an annual basis. Meaning, each year, 300,000 new homes will be built. But still, even as it is now, the rate of construction has stepped up substantially. 

The government’s own figures state that the number of homes built between June of 2018 and June 2019 was 170,000. This is more new build houses than we’ve seen since the start of the global financial crisis 11 years ago. 

Who’s paying for the new build homes to be built?

A large sum comes from the government’s help-to-buy equity loan scheme. What the scheme does is that it allows people to invest in a new build home with a 5 percent deposit. Additionally, there’s a government loan on offer to the tune of up to 20 percent. 

Anyway, let’s now consider the benefits of investing in new build houses. 

Are New Build Houses a Good Investment?

There are a variety of robust financial incentives in place when you buy a new build home. These financial incentives can make a huge difference to the affordability of homeownership. 

When you invest in a new build house you’ll find that frequently developers are happy about offering larger discounts over and above what you would get from a private vendor. Then, as mentioned, the government’s help-to-buy scheme, for the first-time buyer, can prove to be very useful. 

There’s more peace of mind when you invest in a new build. Why so?

The National House Building Council (NHBC), Premier Guarantee, and the Local Authority Building Control Warranty (LABC) – the three main providers of home warranties – are all part of the Consumer Code for Home Builders. Typically, these three providers will offer a 10-year warranty on a new-build. This warranty covers everything structural – wiring, plumbing, roof, etc. Appliances normally come with their own two-year warranty. 

Plus, a new home is a nice home. It’s fresh. It’s clean. And there’s no need to spend even more on renovation and making the place look how you want it to look. If a buyer chooses to, they can begin to presonalise the decor well before the new build is finished. 

Otherwise, there is the benefit of the very latest in energy efficiency technology. This helps to make new build houses much cheaper to run than the older counterpart.

The Home Builders Federation carried out research that showed that eight from 10 properties that were newly built come with an energy performance certificate rating of either A or B, A being the top rating. For existing properties that were surveyed, only 2.2 percent of those were rated with an energy performance certificate rating of A or B.

In essence, what this means is that for the new build homeowner, they will spend £443.30 each year on average on energy, including heating. For the homeowner that lives in an older home, they spend an average of £1,072 on energy, inclusive of heating. 

So, as you can see, there are strong arguments in favour of new build houses – in favour of investing in a new build. Whether these incentives are enough is dependent on your personal preferences and circumstances.

 

Sales Suite showcasing some new build homes

To learn more about the new build properties Make Homes offer, get in touch today.

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