New build plot price may go up?

[Mamabananananana]

Is this usual?
Weve been backed into buying a new build thanks to the CHAOTIC market.
Weve "reserved " the first refusal,so to speak but were told the price will probably go up by the time the plot is released which will push us to the very very top and possibly over our mortage availability
Has anyone else had this recently?
It makes me so worried to hold off , wait 6 months and then be priced way out
OR paying way more than my neighbours for a less desirable plot!
It seems so unfair. Wed like to buy the plot right now

Nightmare! We reserved ours last July, didn't exchange until December and still paid the original price. Due to complete in 3-4 weeks, and it's gone up in price by 20,000 already.

We completed on a new build last month. We reserved in December - someone had dropped out of buying the plot so it was nearly finished. We had to choose between the one we got (really good plot, but couldn’t pick any furnishing in the house other than flooring). One on a worse plot where we could pick all the finishes. or we could wait for the next release and get a good plot and pick everything, but risk being priced out.

I’m thankful we went ahead with the one we have, as the price has jumped 20-30k for the same house!

Oh fucking hell.

We reserved on our newbuild 12-months ago and have now been in for 8-weeks.
Fairly certain price was set when we reserved and it hadn't changed when we exchanged a couple of months later.
Having sold 2-houses in the past few months and seeing the chaotic way the market is behaving it was reassuring to know our purchase price was set so far in advance.

@Dougieowner yes it seems totally mad that it could go way up? Its the whole point of us buying one : we know if we have ,say £200k and theyre selling at 200k , we dont need another bloody £20k to go over

We reserved our new build when it was at a point where the price was already announced so we knew what we were getting into. Our builder tends to release for formal reservation in batches when they at at a certain stage of the build.
If we had chosen to "pre-reserve/first refusal" a plot, they would only have given us an indication on price but it could change right up to the point it was released. With the market the way it is, the last houses like ours went up 50K from when we reserved. There is so much demand that houses aren't appearing for reservation at all on our estate. They are all being snapped up under the "pre-reservations" and there are queues of people waiting for houses which haven't even got foundations down yet. I don't think they like to have a fixed price until the nearer build completion due to supply chain/labour issues etc.

@missmarplesapprentice it just seems mad that today , on the estate there are people whovw bought the same house for a lower price and ny the end of fhe Build-they can add on.
Im just getting so frustrated. Rent in my city is absolutely crazy All decent flats or homes being snapped up and flipped for buy to lets

I am hoping to reserve on one but just rechecked the prices and they’ve added 30-40k to original release price. This is despite the fact none in that price bracket have been reserved.

Not helpful but I imagine it's because of the massive increases in materials costs. A builder next door said that bricks are now £1 each! I couldn't believe it!

No one will buy at that price in my opinion

The new builds near me were 619k at Christmas are now 650k.

If you can afford it when you reserve then you should be able to afford it when you exchange as the price should not change.
In our recent experience we could see that prices went up as each phase or parcel of plots started but the price between reserving & exchanging didn't change as you had to exchange 30-42 days later and if they got the pricing wrong then it showed them in a bad light.
If earlybirding then yes, it is possible the price may increase.
When you have exchanged you are safe, even if completion is 12-months away (not unknown on our development) then the price is fixed.

I thought the price you reserved at was the price you bought at. I know the prices can go up on different release phases (can be years apart of a big development) but YANBU to think it’s really unfair of them to move the goalposts like that.

Buying a new build is really hard work now. The timescales to exchange are ridiculously short and I’ve no idea how anyone buys one unless they’re prepared to move into rented or with family for ages after their own house sale.

I think the issue is you haven’t reserved it. You’ve reserved first refusal when the plot is released. At that point you will reserve it and the price is fixed.

But still seems unfair

@Candleabra

I thought the price you reserved at was the price you bought at. I know the prices can go up on different release phases (can be years apart of a big development) but YANBU to think it’s really unfair of them to move the goalposts like that.

Buying a new build is really hard work now. The timescales to exchange are ridiculously short and I’ve no idea how anyone buys one unless they’re prepared to move into rented or with family for ages after their own house sale.

That is precisely it, you are practically forced into temporary accommodation (unless you are a FTB or have the cash to purchase outright).

When we first looked at our house it was £425K. When we reserved / exchanged it was £443K but it was another 9-months before we completed (9-weeks ago). The same house released 3-months ago was £471K.
We were "fortunate" in as much as my parents house became "available" and after we sold ours we could move into that rent free for as long as necessary.

I would say it is worse for buyers of existing properties.
Selling my late parents house, if you weren't sold and living temp accommodation with the funds set up you didn't even get a viewing. Then it was a case of making your offer as high as you could and we get to choose the lucky buyer. Even then, if we were so inclined (we are not that sort of people) our buyers could have been gazumped if a new (better) offer came in.
At least with a newbuild the price is set and as long as you do all that is asked of you, there is no danger of loosing the house prior to exchange.

Thanks Dougieowner! Glad you replied and sorry to hijack the thread op

In the development I am interested in has only sold two properties (reserved). They are apparently negotiating more reservations but not yet happened. Apparently the developer had a nationwide instruction to increase prices at all developments by 5% despite regardless of how well the development is selling. I believe this is due to it being Easter which is one if the busiest weekends on rightmove.

Reserved in October, due in next month and ones on there now are 35k more!

Yes but October and now is a difference of 6 months. In this case its a difference of 3 weeks.

Im not going to count my chickens until the prive is evening released. Which will be months away yet
We wouldve been already up at the top end of our mortgage borrowing, so likely to get turned down of it goes up any higher
sigh

@Mamabananananana where are you looking?

Sounds hard, I’ve just checked a local development and you’re right, all the prices have increased recently.