Is now a good time to buy a new home?

The new homes sector is quickly becoming one of the most exciting areas of the housing market, as homebuyers discover the benefits of new build properties go far beyond the inherent attraction of buying something shiny and modern. These advantages range from improved energy efficiency and affordability to less hassle and lower maintenance costs.

With housebuilders recognising and addressing the needs of homebuyers, both in terms of money, sustainability and well-being, new build developments are quicky becoming some of the most desirable properties on the market, and the time to buy is now.

Energy bill savings

Perhaps one of the most significant benefits of buying a new build property is energy efficiency. Unlike existing properties, which were often not designed with energy efficiency in mind, new build homes are all constructed to the latest standards. This is attractive for both environmental and financial reasons.  

Ranging from A (most efficient) to G (least efficient), an Energy Performance Certificate (EPC) rates a property on how energy efficient it is. 85% of new build properties built in the year to June 2022 had an EPC rating of A or B. This means that new build homebuyers in the UK are set to save over £3,100 on household bills per property each year when the Energy Price Guarantee increases in April this year.

Discounted mortgage rates

Furthermore, an increasing number of banks and building societies are either providing discounted rates on green properties, or beginning to incorporate a property’s EPC rating into their affordability calculations.

Therefore, customers buying new build properties are not only financially rewarded throughout their ownership of the property, but also at the point of sale as well.

Specialist new build mortgage brokers can support homebuyers as they navigate various options like this and help buyers reap the maximum benefit from buying a property that is energy efficient.

Buying incentives

Banks are not the only ones incentivizing the purchase of new build properties.

Many housebuilders are also working to remove financial barriers to the purchase of a new build. These incentives include, but are not limited to, help with the deposit, cashback offers, or even the payment of legal fees and stamp duty. All of which helps to reduce the overall cost of purchasing a new build property.

At this time, the financial benefits of buying a new build home will be attractive to the full spectrum of homebuyers, whether that is first time buyers, those looking to take the next step on the housing ladder, or those looking to downsize.

While first time buyers will be able to benefit from a range of public and private schemes designed to support access to home ownership in the UK, there are also a number of financially attractive options for those looking to move into a new build from their existing property. Anyone looking to take advantage of these options should seek independent financial advice to ensure they are getting the most suitable deal for them, both in the short and long term.

Homes designed for modern life

Putting the financial benefits of buying a new build home aside, there is a strong argument to say that new build properties are simply more pleasant to live in. Housebuilders have an ever greater focus on building not just a physical building, but a home that is designed with the well-being of its residents in mind. They are, for example, increasingly mindful of green space and biodiversity, creating wildlife friendly communities.

As technology becomes ubiquitous in people’s lives, having a home that reflects this is becoming increasingly important. One good example of this is from the 15th June 2022, new homes and buildings in England will be required to have EV charging points fitted in hope to reach zero emissions by 2050.

With the UK planning to ban cars purely powered by fossil fuels by 2030, having an EV charger will quickly become a necessity for the majority of homeowners. This is just one example of how new build homes are equipped to support all the needs of modern life and are saving new homebuyers hundreds of pounds.

No hidden horrible histories

Additionally, because these spaces are new, residents can enjoy modern furnishings and smart technologies while not having to worry about wear and tear inherited from previous owners.

Owners of new build homes can rest easy in the knowledge that they are not likely to have to upgrade or retrofit their properties to keep up with modern standards. Such projects can come with huge practical inconveniences, as well as significant costs. Recent analysis has shown that upgrading to modern standards can set homeowners back more than £70,000.

Chain-free buying

Over the last year, these benefits have started to resonate particularly loudly with consumers and their evolving needs. With research suggesting that half of the offers made on homes currently do not lead to a sale – the number one reason being an offer falling through in a chain – not having a chain of buyers ahead of you when buying new, can be another major advantage.

For a number of reasons, new builds are becoming increasingly desirable to consumers – offering benefits from cost-savings, to greater quality of life, to energy efficiency. This, in turn, is driving up the value of new build properties in a trend we expect to see continue as demand grows in the years to come. As such, it is safe to say, there has never been a better time to invest in new build.

This information was contributed to by our friends at LSL Financial Services. LSL is one of the largest providers of services to mortgage intermediaries, specialist mortgage and protection advice to estate agency and new build customers and valuation services to the UK’s biggest mortgage lenders.