To consider buying a new build??

[firsttimemummy11]

Hi,

We're desperate to get on the property ladder and exploring the option of a new build with the help to buy option.

Are we being naive in thinking this is a good idea? As I hear so many mixed reviews about new builds? And is the help to buy option to good to be true?!

We're a couple in our early 30's with a toddler and have just about managed to save a decent 5% deposit? We are looking at a development in Horley.

Would really appreciate hearing others pros and cons, thanks!

All I can say is it depends on the builder .
If it’s Persimmon then definitely not but Cala homes are high quality and have better aftercare .
Do lots of research on the builder before you commit to anything .

We have a Redrow and didn’t have too many problems. You’ll always have issues with any house you buy but at least Redrow came and sorted them out for us. New builds do lack the character of older houses but they are designed well so there isn’t an extension on an extension on an extension like some houses.

For me, the only disadvantage is that you generally pay a premium for it being new, bit like buying a new car in a way. However, the help to buy will help to balance that out and if you are looking at staying in it for a reasonable period then it matters even less.

Check out the reputation of the builder and how good they are at sorting issues, you here horror stories, but there are thousands of people (the vast majority) that, aside from a few niggles, are perfectly happy.

Just make sure you do a thorough snagging list and keep on the builders backs to get any things resolved. In that matter, it's better to be in relatively early on a new estate as they want to keep their first owners happy so that they don't get negative press when they are actively marketing the estate.

I've never found a new build I would have been happy buying. My main issue with new builds is that it's like buying a new car - once you sign the registration and drive it off of the car lot it loses a huge amount of value instantly. New builds are often over priced and you need to stay in them for quite a number of years before the will 'pay you back' so to speak... effectively you start in negative equity.

If the house is actually priced correctly for the area (ie. is the same price of equivalent none new builds) then I'd be a lot more interested... but I've not seen it yet.

Other things that put me off is that they never have a loft... where do you put all the stuff that's meant to be put in the loft?

Also general lack of storage and overall low build quality...

As @FizzyIce said - definitely do lots of research on any builders that you're considering buying from. I've heard a lot of stories from friends who have bought new builds (although nothing serious) where they've been waiting ages for snags to be fixed... turf to be laid... drains to be fixed etc etc.

Personally we went for a small cheap fixer upper in a 'not so nice' area. Then we sold that and moved to a large fixer upper in a nice area. However we didn't have a youngster...

Don’t. My work involves a lot of research into housing issues (although I don’t work in the property industry) and the cons seem to outweigh the pros.

It’ll lose value the moment you buy it
Service charges, if they rise too quickly, could land you with a £0 valuation unable to sell
If it doesn’t substantially increase in value, and/or you don’t increase your salary, when the 5 year interest free period for a HTB loan is up you’ll find yourself paying ever increasing interest on top of your mortgage if you’re unable to sell, remortgage or save to pay the loan off yourself
If it’s a flat and the block has cladding, you won’t be able to sell. Doesn’t matter if it’s flammable or not, lenders are so cautious they’ve all but stopped lending on any buildings with cladding
Building work will generally not be as robust as older houses
Your freehold (if it’s a leasehold which many new builds are) could be sold to an offshore investment company without you knowing who may increase ground rent beyond reasonable amounts

Why not? I’m on my third new build. Loved everything single one

I hate new builds with a passion as I think the "affordable" ones are thrown together and crap BUT, if it was the best chance I had of having a secure home of my own, with no landlord to sell up from under me, I'd leap at it.
We bought a 100+ years old mid-terrace that cost less than a new build and has much more space I and I love it. But that was nearly 20 years ago and if I was buying today I couldn't afford it. If you need Help To Buy, use it and get your home.

Check the reviews of the specific estate you like. I have a Persimmon which have a horrific reputation (well deserved from what I've read)...but I read the reviews of the estate and they were all great. Bought (apprehensively) and it was the best decision ever. Had a few minor issues and they were all fixed quickly.

I'm in Scotland so its probably a lot different, up here there is no leasehold and new builds are generally cheaper than second hand houses. The houses hold their value too. In fact, the few ones that are sold second hand sell for more than the original buyer paid.

Didn't use HTB but friends did and raved about it. Wouldn't have been able to buy otherwise.

Also, if 5% is your max...do you have a better option?!

I've had awful problems with both new builds and old houses with hidden problems but if a new build was all I could afford I'd jump at it. I was going to buy a new build recently but then discovered it was Persimmon homes and bought a 1990's modern style cottage instead, I'm very pleased with it.

Unlike @Doggodogington, I would absolutely not recommend Redrow.

Our development was so badly finished (if you can call it finished) that every owner went to the Head Office and created a protest with the media outside.

One family completed without a kitchen! Under the UK law they HAD to otherwise they’d have been seen as failing to complete.

Another lucky purchaser had the joy of removing a very old mattress from their new pride & joy on their completion day...turns out a workman had dumped it their because he didn’t know where else to put it, having excavated it from a new phase!!

A third family on the same development also on Completion Day touched their fire surround and discovered it actually hadn’t been fitted - the builder had simply leant it against a wall.

I also know of someone who purchased a Charles Church home that had so many issues with it that he himself bought Persimmon shares in order to attend the AGM and create a scene just to get work remedied.

If you’re going to do it, go in with an open mind.

Wouldn’t recommend Cala - we are still arguing over the snagging list 13months later and it’s obvious that they cut every corner possible.

Our house is 10 years old and we are the second owners, first lot bought it as a new build. It is a persimmon home. I cannot speak for the original owners but we have had no structural issues with the house , we have had an issue with the radiators which need to have a flush. Apparently it is very common in new builds as corners are cut whilst putting in the heating system.

Otherwise we have a great sized garden, kitchen, separate dining room and a good sized lounge. All our bedrooms are a good size too. Not sure I would buy a new persimmon house now as I am not keen on some of the layouts and the room sizes at a new development nearby are nowhere near as generous as our home. Houses on our estate sell quickly but beware that a lot of current new builds are overpriced and you will be start in negative equity. If you would then be looking to move in the short term I would stay where you are now and save for a bigger deposit and then buy.

I bought a new build 5 years ago. David Wilson, not had many problems at all and the houses on the road have gone up in price

The three main things that put me off a new build:

• Nowhere bear enough space for parking. Driveways are very narrow, roads/pavements very narrow, where do all the cars go?

• Not enough storage and weird layouts. I saw one the other day and a chunk was taken out of the bottom two foot of the master bedroom as this was the top of the stairs! Hard to explain maybe, essentially instead of the the bedroom being a cube, it was a cube with a chunk cut out. So you couldn’t use that wall for any furniture!

• the move to open plan means no dining rooms, kitchens in your living rooms, and as a result the floor footprint is tiny.

Agree that persimmons are a pile of shit.
My parents had massive issues with them when they brought their new build years ago they also chucked all their left over material under the bath and put the panel back on. They since moved to another new build and had none of these issues.

Whilst I wouldn’t want a new build I can see they serve a purpose.

Be very careful about the finish, the design, the price and any service type charges.

We’ve had two new builds, loved them both. We have great sized rooms, good sized (not overlooked) garden, drive and storage. We’ve had jones and Rowland. The jones home had significantly more snagging issues and was not built to the same quality of Rowland homes. Help to buy has worked for us in the past.

We previously had a terrace. It was huge, but damp was a big issue. The roof cost a fortune In repairs, needed boiler replacing and work on electrics whilst we were there. We broke even when we sold it despite spending a fortune on maintenance and upgrading kitchen/bathroom.

Have a look around at what’s available, lots of developers offer family friendly layouts and good incentives which make home buying more affordable (ie: money towards legal fees, stamp duty etc)

Is it the westvale park development.

If so think carefully about schools. Is there a service charge or an estate rent charge? If the latter steer clear.

With HTB what are your plans for the interest free period ending in 5 years time? To my mind help to buy artificially inflates the market as it make houses which are unaffordable, affordable- for 5 years anyway.

We stayed in a new build 5 bed town house

The footprint and design was same as friends older town house.

Friends older town house had 3 beds and a large upstairs living room,

New build had crammed kitchen dining room and living room for potentially 10 adults (5 double bedrooms) into the space friend has her kitchen diner.

Even the design of the living area only allowed a 2 seater sofa that had to be placed across one of the double doors out to the garden.
There was an unnecessary doorway and the radiator was along the only free wall

A few small adjustments in the design would have made it a lot more usable

Couldn’t believe that they had fitted wardrobes blocking plug holes and the tv aerial

If you are going to offer wardrobes them move where the plug holes etc are fitted

As you see from this thread, some people love them, some hate them on principle.

If you do go ahead get an (independent! Never the house builder's) solicitor to check the conditions of any estate management charges. We recently looked into a Taylor Wimpey development in the West Midlands where the estate management fee increases were uncapped year on year. The estate management company also had a restriction on your house, which means they had to give their express permission if you wanted to sell. This was on a so called freehold house. Look up the "fleecehold" scandal and make sure you understand the restrictions of any house you buy, ie can you extend without their permission etc? If you agree to the contract, great, but at least you understand the risks and have made a conscious decision.

Also, you hear so many varied opinions because, actually, no two new build estates are the same. In terms of contract terms, quality of build, size of garden, carparking, spaciousness etc. Yet most people talk about new builds as one homogeneous mass.

It's like saying all Victorian houses are the same, when some are back to back terraces with zero soundproofing and crap layouts and are draughty and others are more akin to Osbourne House. Of course there are well built, solid, soundproof Victorian terraces too, but that just further highlights the ridiculousness of the arguement that all new builds are the same.

And no, a small developer isn't always better (we need a MN new build house thread bingo card!)

The estate management company also had a restriction on your house, which means they had to give their express permission if you wanted to sell.

Blimey that's terrible! Why would they have such a clause @Uncooperativefingers?

I think there are some really awful new builds and some really good ones.

Do your research, check everything and list all the things to look out for so you can make sure you aren’t missing something and ask loads of questions by email to get answers in writing and hopefully everything will be good.

I think it is the same as buying an older property.
Don’t think everything will be shiny and new and free from problems and diy just because it is a new build