Homebuyer FAQs: How do you buy a new build property UK?

Buying a new build home in the UK isn’t that different to the normal home buying process, though there are a couple of steps which make it a little bit different.

Once you’ve decided on a development, house type and the plot you like, you will reserve the property by paying a reservation fee, which is usually around £1,000. This fee holds the property for you while you sort out your finances and legal representation.

That means that your next stop will be to secure financing for the purchase. This involves getting a mortgage agreement in principle from a lender, which shows the developer that you have the means to finance the purchase. There are also government schemes like the First Homes Scheme or shared ownership that can assist with buying a new build home with a smaller deposit. You may also own a home you need to sell. It’s a good idea to do your research to choose the best agent in your area. 

When you engage a solicitor or conveyancer, make sure that they are experienced in new build purchases. Conveyancers handle the legal aspects of the transaction, including reviewing contracts and ensuring all paperwork is in order.

Once your finances are sorted and legal checks are completed, you exchange contracts with the developer. This involves signing a contract and paying a deposit, usually around 10% of the purchase price. Exchanging contracts legally binds both parties to the transaction. Generally, new build homes purchased off-plan will allow you to make custom choices. Typically, this will be for fixtures and fittings, flooring, kitchen cabinetry, as well as additional features that may be essential for your lifestyle such as extra electrical sockets or upgraded bathroom features. 

If the property is still under construction, you wait for its completion as per the developer's timeline. A good developer will provide updates on the progress of construction and an estimated completion date. 

You'll have the chance to appoint a snagger who will inspect the property for any issues or defects. You can usually arrange for this before completion. This is known as a snagging inspection, and it's essential to identify and report any problems to the developer promptly so that they can resolve them.

On the completion date, you finalise the purchase by paying the remaining balance to the developer, just as you would pay a homeowner for an existing property purchase. Once the payment is made, you receive the keys to your new home, and the property officially becomes yours.

After moving in, the developer typically provides a warranty period, such as the NHBC 10-year Warranty. The developer will also address any defects or issues with the property. This is usually referred to as the snagging period, and it's essential to report any problems promptly.

Disclaimer: The information provided in this blog post is for informational purposes only and does not constitute financial advice. While we strive to provide accurate and up-to-date information, individual circumstances may vary, and readers are encouraged to seek personalised advice from qualified financial advisors or mortgage brokers before making any financial decisions. We do not accept any liability for the consequences of actions taken based on the information provided herein.