Ready to be a homeowner?
For many first-time buyers, one of the most pressing decisions involves choosing between a new build home and an older property. Both have their advantages and disadvantages, and there are different financial considerations too.
In this guide, we’ve outlined everything to consider when deciding whether a new build or an older property is right for you. We’ll cover benefits, drawbacks, and any relevant financial aspects, including schemes.
Table of Contents
The appeal of new build homes
New build properties offer many benefits and appeal strongly to first-time buyers. They typically feature:
- Modern finish: Fittings and furnishings in new build homes are usually modern and high-quality, while the appliances are often the most energy-efficient models possible.
- Warranty: Most new build homes typically come with a builder’s warranty, which offers peace of mind to buyers.
- Customisable: In many cases, you can personalise the designs and layouts of new homes to suit your preferences.
- Low-maintenance: New build homes are ready to be lived in straight away. This saves money, time, and extensive maintenance.
Since many new build homes come with flexible layouts, they’re perfectly suited to couples and young professionals planning to build a new life or start a family. This facilitates planning for the future and fosters a sense of community.
Drawbacks to new build homes
For first-time buyers, there aren’t many drawbacks to new homes. However, a few challenges include:
- High costs: In popular commuting cities and reputable suburban areas, new builds can be more expensive than older properties.
- Limited choice: Due to high demand and pre-planned development sizes, the availability of new homes may be limited in certain areas.
- Lack of character: Some buyers prefer older properties for their character and charm, while new homes are designed as clean slates.
Government schemes for first-time buyers
In the UK, certain schemes are available to help first-time buyers afford their home. With the First Homes scheme, new homeowners can access 30% to 50% reductions on the market price.
Homes that qualify for these schemes usually need to be newly built on a suitable development. This often makes new builds the most accessible options for first-time buyers, since older properties might not be included in grants and schemes.
Financial commitments
The financial obligations and terms vary according to property type.
With new build homes, some buyers struggle to manage payments for deposits, mortgages, and other fees written in terms that become evident during the purchasing process. But with first-time buyer mortgage payments falling, affordability is improving.
Older properties can be a significant cost commitment too, but usually for different reasons. Having stood for decades or even centuries, these homes often need redecorating or renovating completely to make them liveable.
The verdict
No matter whether you choose an older property or one that hasn’t been completed yet, it all comes down to personal preference. It’s normal and expected to have some concerns, especially over room sizes and quality issues.
Whichever house you choose, it’s yours to improve once you’ve got the keys.
Moving on up
Taking your first steps onto the property ladder might feel daunting, but as a first-time buyer, you’ll enjoy favourable rates and often faster access to high-demand properties too. Or, if you choose an older property, you’ll enjoy the wonderful adventure involved in redecorating and making it your own.
