Choosing a new-build or resale home
Should I buy a new-build or resale home?
When it comes to buying your own home, the decision to purchase a new-build or resale property is an important one that is often overlooked. Do you prefer the clean lines of a contemporary home or the character and charm of an older property? Do you want to move into a new neighbourhood or somewhere that already has an established community?
Take a look at the key differences between the two types of homes to help you decide which is right for you!
New-build and resale
New-build
New build homes are purpose-built properties that are usually part of a larger development or area regeneration. A buyer of a new-build property will be the first person to live in the home.
Resale
Resale properties are pre-loved homes that the current owner bought and wishes to sell on.
Housing options
New-build
Hundreds of thousands of new-build homes are built every year in the UK and they’re a popular property type, especially amongst first time buyers, offering many benefits such as building warranties, energy-efficient designs, and a blank canvas to decorate.
It’s therefore no surprise that so many affordable homeownership schemes are available at new-build developments including Shared Ownership, First Homes and Deposit Unlock.
Resale
As many alternative housing options are only available on new-build properties, and there are naturally less resale homes on the market as these depend on current owners deciding to sell, resales are harder to come by. But they are out there!
You’ll most commonly find pre-loved homes available on the open market, as well as those available through the Shared Ownership resale scheme.
Buying
New-build
A positive of buying a purpose-built home on a new development is that you won’t be part of a moving chain that could threaten your completion date. There also won’t be any potential personal issues with an owner as you’ll be dealing directly with a housing provider such as a housing association, sales agent or local authority.
However, if there are any delays in completing the building work on a property bought off-plan (meaning you purchased the home before building was completed), this can affect your move-in date.
If buying a Shared Ownership home, in order to purchase a new-build, you would need to attend a financial interview to work out the share you can buy; this may be more than the share that the property was originally advertised at.
Resale
With a resale property, you can see exactly what you’re getting for your money. You will be able to view the property and fully envision yourself living there, something that you don’t get when you buy an off-plan home that’s still in the process of being built.
The general process of buying a resale home is the same as purchasing a new-build property. However, with Shared Ownership resales, you would not be required to attend the usual financial interview because the share you are purchasing must be equal to – or higher than – the share that the current occupant owns.
Style and specification
New-build
Most newly built homes are modern and come fitted with high-specification appliances and materials. New homes must also comply with the latest building regulations, ensuring they include the most up-to-date heating systems and insulation. This is often preferred by first time buyers who are keen to settle into their new home straight away, rather than worrying about additional maintenance costs.
New homes also offer a clean slate for buyers who want to put their own stamp on the home, however, new-builds often need time to ‘breathe’ and you may be advised not to hang pictures or paint the walls for a specific period after you move in.
Resale
Older properties will generally have a sense of character about them. Whether you like the period features of an older property or appreciate some of the previous owner’s handiwork around the house, they’re visually quite different from a new-build.
A resale buyer will still be able to decorate and personalise according to their taste, however, this often isn’t quite as easy with a second-hand property as the home will have previously been altered and fitted out to suit the taste of the previous occupants; consequently, it may prove trickier to start afresh without doing more work first.
Costs
New-build
The asking price of new-build homes is usually higher than that of resale properties as they tend to benefit from more features and mod cons. If buying through Shared Ownership, the rent on a newly built home is often more expensive too as this will be based on the percentage of the share you’re not purchasing; the service charge and ground rent on a new home also tend to be higher than those of older properties.
However, new-build homes also benefit from warranties which can save money if anything were to go wrong in your property down the line. These homes are also usually much more energy efficient which can save hundreds of pounds on unexpected heating bills during the colder months!
Resale
The initial purchase price of a resale property can often work out more affordable than that of a new-build home. The rent on a Shared Ownership resale property also generally works out considerably less than that of a new-build of the same type and size as these rent increases will be set out in the lease; they are also based on consumer price inflations, not on rising property prices.
However, older homes often need a bit more love than their new-build counterparts. The cost of renovations, decorating and general DIY work will all add up, plus older homes are often not as well insulated or energy efficient which can increase your monthly outgoings.
Community
New-build
Moving into a previously established neighbourhood may not appeal to all buyers. When moving into a home on a completely new development, you’ll have the opportunity to integrate and make friends as part of a brand-new community. Plus, you’ll likely come across a number of other first time buyers who can share the experience with you!
Resale
Most existing homes are located in established neighbourhoods; if you already live in the local area, you may even know your new neighbours before you move in! Resale homes in well-established areas may also have Neighbourhood Watch action groups and other similar committees already in place.