One of the first questions you are asked when looking for your first home is, ‘What sort of property would you like?’.
New-build homes are often smaller than older ones as there was previously room for a garage and two cars on a semi-detached property on plots that had 12 houses to the acre.
But now, with the housing demand greater than ever, owners are considered lucky if they have their own space outside and plots are now built up to 24 to the acre.
Most new-build homes are usually snapped up by first-time buyers, but why? After all, they can cost up to 20% more than second-hand homes in the same area and of the same build.
It’s simply because of the easiness in dealing with a brand-new property.
With a property that has only just been built, there is no chain. Meaning there’ll be less waiting for a third party to sort their side of things out.
What you give up on space, you make up for in efficiency, but is that always the best way?
It isn’t the house builders fault. There are loose rules on which they must bid on land for development and they often have to bid the maximum number of homes in order to win the plot – meaning maximum density and minimum sizes, leaving the UK with the smallest new property sizes in Europe.
Despite all this, new homes are extremely attractive to first-time buyers, especially with schemes aimed at first-time buyers and new-build homes specifically.
Thanks to the government’s Help to Buy scheme, 20% loans for five years are available that interest-free for the first five years, meaning budding buyers will only have to find a 5% deposit and pay back the loan when they sell.
To work out whether a new-build or second-hand home is better for you, you will need to compare new and old prices and sizes, whilst considering the aesthetic aspect.
Second-hand homes will buy you more space in a property that won’t lose value as soon as you move in, but a new-build comes as a blank canvas and a number of scheme benefits that could help you onto the property ladder.
To discuss the benefits of new-build, or to begin your mortgage journey, contact one of our expert advisers and they will be able to talk you through the next steps.