Will I get a £600k house for £500k

[caravantulips]

Suddenly find myself looking for a house for the first time. (Long story but I’ve never looked or bought before). There’s a new build advertised as £595 guide price. Am I totally naive in thinking that the price could be brought down if they do don’t all the finishing hi spec bits. Plus slow market at the moment (I have no idea - is it slow? Just thought might be with the news etc.). £500k is my absolute max budget. Am I wasting time even thinking it’s an option?

Not necessarily the case. When we were looking there was a new development and we looked at the top price house on it. It was on sale for £850k which was ridiculous. After 6 months they reduced it to £750k. Then 6 months later they reduced it to £699k. It finally sold for £650k.

I doubt however that a developer would reduce a price like that unless it's been on the market for several months.

When we were looking for our house. A new build house was being built on an existing road, right near to where we wanted to live. One day we drove past, so we asked the builders if we could have a look. We looked at it and loved it. The estate agency dealing with the sale, had said it would probably be on the market for £450k, but would get back to us. When they got back to us, the seller wanted £550k.

18 months later it sold for £450k. Which we would have given them 18 months before. So they would have had all the extra interest to pay on top.

Is it a new build estate? It a ‘one off’?

In this volatile market I personally think you have nothing to lose by negotiating. The agents selling can tell you what is possible. All sorts of ways . I know I bought cash which developers love and allowed them to leave sold sign up even after I moved on . Did a deal with kitchen installers to use cheaper options which I sourced myself . Sometimes accept lower cash for FTB grant and charge for other things like furniture etc . You have absolutely nothing to lose. Even if they refuse so what ?

It would be a good idea as well to engage with a mortgage broker who knows how varying set ups work and have access to new build schemes that may help. For example there is a lender that do a product for people buying through select developers where you bring a 5% minimum deposit and then there is a 15% interest free loan and an 80% (or less) mortgage.

Are you in my area ? 😂 having very similar issue, this area has skyrocketed in prices and popularity since covid and alot of these schemes don't seem to reflect that.

We have just bought a new build. Was £750k initially, but by the time we came to look at it it had been ready 18 months and had reduced to £650k so it is possible, just depends how well they sell and how desperate the developer is to shift them.

Economic winds are in your favour, but new-builds are still not going to be a good buy.

https://thenegotiator.co.uk/news/uk-housing-market-news/war-in-middle-east-may-force-bank-to-raise-interest-rates-economists-warn/

They are definitely under pressure now.

https://thenegotiator.co.uk/news/land-new-homes/new-build-property-sales-drop-to-lowest-in-over-15-years/

I don’t want to say “hopefully you are right” because I know others will suffer, but from a selfish point of view I really hope you are right.

As for your comment on new builds I totally agree. Not my style at all (love old houses!) and I resent paying a premium for the ‘newness’ when I don’t see that as a bonus.

Great news to see them under pricing pressure like that, but not good if you purchased one of their over-priced hutches before the price drop.

A lot of people don"t like the idea of a previous owner feeding their ten cats in the kitchen for 15 years before them, that sort of thing, good to see developers under pressure though, they are a scourge on society.

A £600k new build is likely to only lose value, very overpriced and usually poor finish quality.

This was before the present crisis! Buying a new build, especially with mortgage debt, is going to be very toxic for your financial health, buyer beware, steer clear.

https://www.thisismoney.co.uk/money/mortgageshome/article-15011041/New-build-prices-PLUMMET-one-region-seeing-homes-drop-43-000-year.html

A relative of mine is like that. Would never be seen dead in a charity shop and certainly wouldn’t buy a used house. Each to their own though.

Me? I love it. I love the history. I live in a really old house and often wonder what it was like for the previous occupants. Did they sit at the kitchen table table where I am sat now, listening to the wireless when war was declared on Germany. How different was their Christmas to ours? We are sitting around the same fireplace. Bet those children were as excited as mine. A new build in comparison feels a little odd. A bit cold.

Oh gosh. I got a bit carried away there! I think I’ve just talked myself out if a new build! 🤣

No chance with a new build.

Have you got a LISA set up as the government puts in money and if you don’t use it for a house then you can get it at 60. It’s well worth opening even just putting a pound in

Find out when their end of quarter / year end is as they are far more likely to do a deal then to meet their targets. As you are chain free and if you have a mortgage in principle you will be an attractive prospect.

I agree with @TravelMore to find out the year end. It’s often end of December. Developers will need revenue in the 6-8 weeks before year end. If you can move quickly and can wait for the year end then they might negotiate. Depend which developer and how big they are. The smaller developers are more flexible.

I've seen some drop from £900k to £750k in an area we are looking in.

I suppose the land that new builds are built on is steeped in history, so you are never far from the past, I have heard of various sites that are supposedly haunted.

Already too late for many small developers, and of course there is a knock on effect to trades and suppliers when a developer goes bust.

https://www.pbctoday.co.uk/news/hr-skills-news/2025-administrations-keep-up-with-latest-construction-companies-collapse/147257/

That is quite juicy drops, probably still overpriced though?

Sadly too old, but definitely getting them set up for the children.

Good idea @Zippymonkeyand @TravelMore!

I'm the same as you Op. I love the idea of the history of what has gone before in older houses and given your feelings I think you would be happier with an older property. Buying new builds means paying a premium and a potential long list of problems caused by shoddy building practices by greedy developers.

A colleague has just bought a brand new house, roof lets in water, causing damp and a damaged carpet, windows letting the rain pour in, also damaged floor and more water damage to the newly painted walls. It is taking ages to sort with resistance from the developers at every stage. Also she is not allowed to build a garage or driveway for 18 months because of "restrictions".