Process

Buying a new build house

New builds offer a blank canvas, warranties and energy efficiency, but the buying process and pitfalls differ from older homes. Here's what to check.

Last reviewed 1 June 2026

In short

Buying a new build means purchasing a home directly from a developer, often before or during construction. You typically pay a reservation fee to hold the plot, then exchange contracts within around 28 days and complete either on a fixed date or on 'notice to complete' once the home is finished. New builds come with a 10-year structural warranty (such as NHBC Buildmark), are usually more energy efficient, and often include developer incentives like paid stamp duty or upgraded fittings. The main risks are paying a 'new build premium' that can dip on resale, construction delays, snagging defects, and, for some flats and houses, leasehold terms with ground rent and service charges. Always use an independent solicitor, budget for a snagging survey, and check the tenure carefully.

New build vs older home

Factor	New build	Older property
Energy efficiency	Usually high (good EPC)	Often lower, may need upgrades
Repairs needed	Minimal at first, warranty cover	Variable, no structural warranty
Chain	No upward chain	Often part of a chain
Price	New build premium	More room to negotiate
Customisation	Choose fittings/finishes early	Buy as seen
Tenure	Sometimes leasehold	Houses usually freehold

Pros of buying new

A 10-year structural warranty such as NHBC Buildmark.
High energy efficiency and lower running costs.
No onward chain, reducing the risk of a collapse.
Modern layouts, wiring, plumbing and low immediate maintenance.
Developer incentives like part-exchange, paid stamp duty or upgrades.

Cons and risks to weigh

A 'new build premium' that can fall on resale, risking short-term negative equity.
Construction delays pushing back your completion date.
Snagging defects that need chasing with the developer.
Leasehold terms on some flats and houses, with ground rent and service charges.
Smaller room sizes and gardens than comparable older homes.

The new build buying process

Reserve the plot
Pay a reservation fee (often £500–£2,000) to take the home off the market while you proceed.
Instruct a solicitor
Use an independent conveyancer: not just the developer's recommended firm: to review the contract and tenure.
Exchange quickly
Developers usually require exchange within about 28 days, with your deposit paid at this point.
Wait for build completion
If buying off-plan, completion happens on 'notice to complete' once the home is finished and signed off.
Snag and complete
Inspect for defects, ideally with a professional snagging survey, then complete and get the keys.

Check the lease before you reserve

Some new build houses and many flats are sold leasehold. Read the ground rent and service charge terms carefully, escalating ground rent has caused serious resale problems. Ask whether you can buy the freehold and at what cost.

There's more room to negotiate than you think

Developers protect headline prices but will often add value through incentives, paying your stamp duty, including white goods or flooring, or upgrading the kitchen. Negotiate hardest near the end of a financial quarter or on the last few unsold plots.

Common questions

Is buying a new build a good idea?

It can be, you get a warranty, energy efficiency, no chain and modern fittings. The trade-offs are paying a premium that may dip on resale, potential delays and snagging, and leasehold terms on some homes. Weigh these against your priorities.

What is a snagging survey?

A snagging survey is an inspection of a new build for defects, from cosmetic finishing to plumbing or insulation issues, usually done before or just after completion. You then present the list to the developer to fix under warranty.

Do new builds come with a warranty?

Most do, typically a 10-year structural warranty such as NHBC Buildmark, with the first two years covering defects more broadly. Always confirm which provider and what's covered before exchanging.

Why do new builds lose value?

New builds often carry a premium like a new car. Once you've lived in it, it becomes 'second-hand' and may sell for less than you paid, especially in the first few years. Buying to hold for the longer term reduces this risk.

Can I negotiate on a new build?

Yes. Developers prefer to keep headline prices high but will often throw in incentives, paid stamp duty, upgraded kitchens, flooring or white goods. End of quarter and the final unsold plots are the best times to push.

Should I use the developer's recommended solicitor?

You can, but it's wise to instruct an independent conveyancer too. Their job is to act for you, scrutinise the contract, tenure, ground rent and service charges, and protect your interests rather than speed the developer's sale.

What happens if the build is delayed?

Off-plan contracts usually complete on 'notice to complete' once the home is finished, so the date can move. Check the long-stop date in your contract, the latest date by which it must complete or you can walk away.

Are new build houses leasehold or freehold?

New build flats are usually leasehold, and some houses have been sold leasehold too. Houses should ideally be freehold, always confirm the tenure and any ground rent or service charge before you reserve.

Sources

Work out your full cost of buying

The planner adds stamp duty, legal fees, surveys, refurbishment, removals and the emergency reserve you should keep after completion, so you know exactly how much cash you really need.

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