New builds retaining value?

[IWillAlwaysBeinaClubWithYouin1973]

Interested to see the new build I'm buying was valued at £470k and now the ones next door are going for £500k - not sure they've sold any yet though. I thought new build was like a new car - drive it out the showroom you've lost 10%

But I am hoping to only be here 3-5 years, so what are people's opinions on price in that time. Will I lose money? Will it retain its value or (it's in a really good area 3 bed detached) or might I be lucky and cover my costs? Just opinions or experience really.

Land value.

I think value depends on the level of demand for housing in the area. Popular areas with high demand will sustain higher prices, regardless of age of housing.

As for selling after 3-5 years, the 'newness' will have worn off but on the other hand any snagging should have been sorted and hopefully a garden has been put in.

Houses are not like cars, I really don’t know why people say that. I’ve owned 2 new builds and lived in 2 others and every one of them increased in value, they may not have increased as much as older properties, but then I also haven’t spent much on them either. I’d be more apprehensive about a new build flat.

You need to look at the market in your area though, see how they’ve done over the last few years, since 2020 especially.

3-5 years I wouldn’t worry about negative equity (we didn’t even experience that when we had to refix a mortgage after only 18 months) but likely won’t see a huge surge in price unless you’re in a very in demand area, markets seem pretty stagnant currently.

On average you have to stay in a new build ten years in order to make anything. I don’t know anyone who has made money on a new build but you might break even. Will depend on area. SIL has been in her new build for 4 years now, purchased hers at £330k and the neighbours went for £295k. It’s meant they can’t afford to move sadly. They usually take longer to sell, especially if the development is still in progress.

ETA I should add my parents bought an exclusive 4 bed (one of only 13) in 2018 and the neighbours just sold for £200k over what they paid for it. (Paid £500k)

It really depends on the market for your house in your area. It's definitely true that new builds lose value immediately as they are no longer brand new, but if the market moves up rapidly, as in 2020-22, they can still go up in value after only a year or two. You don't say when you bought your new build in your post. Just because the neighbour's asking price is 500k, it doesn't follow that it will sell for that. Many homes are languishing on the market for months or even years and being gradually reduced. I've seen several properties selling at less than 2022 values now, although most sellers are still trying to market at 15% higher initially. As to whether the value of your home rises over 3-5 years, it depends on what happens to the market and that will largely depend on the general economy and especially the job market.

I've not even exchanged yet, I'm buying direct from developer but as I understand it they have to honour the Memorandum of Sale price. Just wondered why the remaining ones still for sale are now offered at £500k - I think maybe @Papricat has it, but I was getting excited there thinking these houses are at such a premium the price has gone up £25k in 6 weeks!!

Maybe people really are paying more in your area but what is more likely is that the developers are just hoping for a 'Spring bounce'. I haven't seen very much evidence of that happening. Mainly, I am seeing lots of reductions and that includes on new builds in several areas. Buy the home if you like it, can afford it and want to stay in it long term.

New build 4 bed detached with no front garden and bugger all back garden were starting at £550k here last year. One of them has just been resold at £600k.

Ok this is absolutely bullshit, where on earth are you pulling that figure from?

We bought a new build 9 years ago. Looking to move now and we are looking at 100,000 up on our purchase price. Not sold yet tho so that could change! But that’s in line with current similar not newer houses nearby.

It may also depend if there are other new builds going up in the area. I think a few people local to us have had problems selling here to sell new builds that are about 7 years old - as people were looking at the newer builds currently being built instead - with incentives being offered by the builders.

I looked at a period house and a new build 20 years ago. They were the same price back then. 10 years The new build increased in value by 80% while the period one trebled.

I suppose that it very much depends on hit the neighbourhood of the new build evolves or how the area looks when the shiny “new” tag no longer applies.

I have seen flats’ valuations dropping sharply when other flats around start being rented to students or AirBNBs. I have also seen many over priced new builds.

I am buying a new build which is not so new as built 13 years ago. The Vendor brought the house in 2013 for £200K and sold it 2025 in for 340K. They are still building in the area and the equivalent new house is around £420K - I asked the EA why there is such a price difference - basically down to buyers wanting all new and the expensive kitchens that have been put in. If you buy new - you will need to sit it out a while in order to get anywhere near what you paid for it. In my village there are new builds which were sold in 2017 and on the market now for what they paid for them.

There are a lot of incentives buying new builds also, we got about £20,000 of incentives, it was financially easier for us to buy a new build vs something similar on the second hand market.

It varies massively from place to place. Some places they go up a lot, others hardly any/go down.

Use the bank of england inflation calculator to see whether your house is now valued higher than inflation increase over the same time period. It might be an eye opener.

Only in very few areas like the south do a lot of houses beat inflation.

And always remember that in the current market, a lot of sellers price expectations are unrealistic as they are still playing catchup with what buyers can actually pay. So someone might think their house is worth 200k more but in reality it isn't worth anything like that.

We’ve just sold ours for a 9% increase after living in it for 5 years. The house we’re buying is a same aged former newbuild and had increased in value 30% in the same time.

I don’t know anyone who has sold their newbuild for less than they paid for it, but they don’t necessarily keep up with general average house price increases. Our house was in an area that was already expensive and didn’t have much scope to increase. The one we’re buying is in an up and coming area where prices across the board have increased a lot.

I paid 829 in 2022 and the house is worth 1m now.

previous house I got for 429 and sold for 525 5 years later .

I would imagine that is purely down to location on how well you do.

also to note, actual sold prices are not a reflection of the total incentive package. So in real terms I paid less both times.

We got a newbuild in 2019 for £325k and sold for £405k in 2024. We did add a garden room and landscape the garden though
It was a small estate, sought after area but the market was slow at the time. During our research most properties that sold had increased in value. Only 1 didnt but that was bought and sold again the same year so strange circumstance

Plot, location, street dependent.