Why are more first time buyers choosing new build properties?
When purchasing your first house, there is a lot to sort and consider. Factors such as location, do you need a garden, do you buy an existing house or a new build, all come into play at this very exciting time. Recent trends suggest more and more first time buyers are leaning towards new build property, and here’s why.
At the beginning of 2022, research showed that 97% of mortgage brokers feel optimistic about the new build sector. This is largely due to the rising demand from first-time buyers.
In other research, nearly 50% of first-time buyers were exclusively looking for a new build property while 28% would consider one! That’s a large chunk of the market considering a new build property.
So why are new builds so popular?
With new-build houses, the multiple schemes that give a helping hand in purchasing, have made it easier than ever to get on the new-build property ladder. The help to buy equity loan to name just one has seen many-a-buyers benefit from it to purchase their first new-build home.
What is the ‘help-to-buy equity loan’ scheme we hear you ask? This is a helping hand from the government set to end in March 2023, whereby you are given a loan of up to 20% (in England and Wales) and 40% (if you buy in London) of the cost of the house. You will only need to save up a small deposit and get a mortgage for the rest!
This is popular due to the lower deposit amount you have to save plus taking out a smaller mortgage.
Another reason we think buying a new build property could be on the up, is the appealing nature of the lack of costs that go along with it. Unlike with an established property, new builds have very little that needs to be done to make them home. That means no renovation costs apart from maybe the odd tin of paint. In some cases, if you buy “off-plan” you can even have a hand in what your house is going to look like at the end of the build.
Not only are the initial costs down, but new-build properties are also built to the latest regulations. Therefore they are more than likely to be energy efficient. This will save you money on household energy bills.
Generally, the shorter the chain when buying a property, the quicker completion can occur. As first time buyers are moving out of a space not owned by themselves (rented or staying with parents) the process of the purchase becomes much less complicated and therefore faster!
As well as the speed of the sale, no chain means more stability. There is less that could go wrong with your purchase and therefore less time, money and stress are spent on the whole process.
Gone are the days when there were copious problems with new build property. With a 10 year guarantee for structural issues and a 2-year guarantee for minor snags, developers now have to have a complaints process in place to rectify issues. That means you are safe in the knowledge that when you buy a new build property you’re also purchasing quality.