New Build Purchases.

Yes — though developers are often reluctant to reduce the headline price, which they want to protect for comparable sales on the same development. Negotiation is more commonly successful on extras and incentives: upgraded kitchen or bathroom specifications, flooring, landscaping, white goods, or a contribution to legal fees and stamp duty. Developers are more likely to offer incentives when a development is not selling as quickly as planned, at the end of a financial quarter, or when a number of plots are still available. Some incentives — particularly cash-back or deposit contributions — can affect your mortgage, as lenders must be told about them. Your solicitor is obliged to disclose any incentives to your mortgage lender.

Yes — there is no legal restriction on selling a new build property immediately after purchase. However, new builds typically sell at a premium over comparable second-hand properties, and that premium can evaporate quickly once the development is complete and the property becomes 'second-hand.' Some buyers find that the resale value in the early years is lower than the purchase price, particularly if the developer is still selling similar properties on the same site. Some developer contracts contain restrictions on subletting or short-term letting — check the contract and lease carefully before buying if your intention is to let rather than occupy. If you bought through a government scheme such as Shared Ownership or Help to Buy, additional rules may apply on resale.

A traditional survey is less commonly obtained on a new build because the structural warranty — such as NHBC Buildmark — provides protection against structural defects. However, a professional snagging inspection is strongly advisable before completion to identify defects while the developer is still on site and legally obliged to remedy them. Some buyers also commission an independent structural survey, particularly where they have concerns about the build quality or where the warranty provider is less well-known. A mortgage lender's valuation is carried out for the lender's benefit — it is not a structural survey and will not flag defects. Whether to commission an independent survey is a judgment call, but a snagging inspection should be considered standard.

Buying a new build involves several important differences from a standard resale purchase. The property may not yet be built — you are often buying off-plan, based on plans and specifications rather than a finished home. Developer contracts are written in the developer's favour and contain clauses you would not find in a standard residential transaction. Exchange deadlines are typically much shorter — developers usually require exchange within 28 days of reservation. Completion dates can shift. The property will be registered at HM Land Registry for the first time, which involves additional legal steps. Warranties replace surveys as the main protection against defects. And where government purchase schemes are involved — Help to Buy, Shared Ownership, Right to Buy — the legal process has further layers. Instructing an experienced solicitor promptly is essential.

New build contracts typically contain a long-stop date — the final date by which the developer must complete the property. If the developer cannot complete by the long-stop date, you generally have the right to withdraw and recover your deposit in full. Between the anticipated completion date and the long-stop date, developers usually have the right to delay completion without penalty, which can cause significant disruption — particularly if you have given notice on a rental property or arranged a sale to coincide. Some contracts include compensation provisions for delay, but many do not. Your solicitor should review the contract carefully for the long-stop date, delay provisions, and your rights if the developer becomes insolvent before completion.

A reservation agreement is a short contract between you and the developer that takes the property off the market for a fixed period — typically 28 days — while you arrange your mortgage and instruct a solicitor. You pay a reservation fee, usually between £500 and £2,000, which may be refundable in full, in part, or not at all depending on the agreement if the purchase does not proceed. Signing a reservation agreement does not legally commit you to buying the property — you only become legally bound at exchange of contracts. However, losing the reservation fee and the compressed timeline that follows are real pressures. Read the reservation agreement carefully before signing and instruct a solicitor immediately afterwards.

An exchange deadline is the date by which the developer requires contracts to be exchanged — typically 28 days after reservation. This is significantly shorter than the timeline for a standard resale purchase, where exchange usually happens after 10 to 16 weeks. The compressed timeline puts pressure on buyers, mortgage lenders, and solicitors to complete all legal due diligence, searches, and mortgage offer processing within a very short window. Missing the exchange deadline can result in losing your reservation fee and the plot being remarketed. Instructing a solicitor on the day of reservation — not days later — and choosing a lender known for fast mortgage processing are the most effective ways to meet the deadline.

Each scheme adds legal complexity to a new build purchase. Help to Buy (England — now closed to new applicants) involved an equity loan from Homes England, requiring additional legal documentation and ongoing obligations. Shared Ownership involves purchasing a share of a property — typically between 10% and 75% — and paying rent on the remainder, with the option to buy further shares (staircasing) over time; the legal process involves reviewing both the purchase and the lease carefully. Right to Buy allows eligible council or housing association tenants to purchase their home at a discount; the legal process must verify eligibility and the discount conditions. All three schemes involve additional legal steps beyond a standard purchase — instructing a solicitor experienced in the relevant scheme from the outset is essential.

Snagging is the process of identifying defects, incomplete work, or poor-quality finishes in a new build property. Common snags include cracked plasterwork, poorly fitted doors and windows, missing fixtures, uneven flooring, and incomplete decoration. You are entitled to carry out a snagging inspection before legal completion — ideally with a professional snagging inspector — and to require the developer to address any defects before you move in. In practice, many developers prefer to deal with snags after completion, but having them recorded in writing before you complete strengthens your position. The developer is legally obliged to remedy defects reported within the first two years under the terms of most structural warranties.

New build houses are typically sold freehold, though leasehold houses do still exist on some older developments — a practice that has been heavily criticised and is due to be curtailed by the Leasehold and Freehold Reform Act 2024, which provides for a ban on new leasehold houses in most circumstances. That ban is not yet in force, but the direction of travel is clear. New build flats are almost always leasehold, with the freehold retained by the developer or a management company. When buying a new build flat, the lease terms — particularly service charges, ground rent provisions, and the management structure — deserve careful scrutiny. Ground rent on new leases granted after 30 June 2022 must be zero (peppercorn) under the Leasehold Reform (Ground Rent) Act 2022.

The same searches required on a resale purchase are needed on a new build: local authority, drainage and water, and environmental searches. Some additional searches may be relevant depending on the location — coal mining, tin mining, or ground stability searches where appropriate. Because new build developments are often on previously developed or industrial land, environmental searches are particularly important and may reveal contamination or remediation history. Your mortgage lender will require searches as a condition of the loan. Search results take time — ordering them immediately on instruction is important given the compressed exchange deadline typical of new build transactions.

Developer contracts are drafted in the developer's favour and contain provisions that would not appear in a standard residential contract. Key things to scrutinise include: the long-stop date and your rights if the developer fails to complete by it; the specification — what exactly is included in the property and what can be changed; clauses allowing the developer to make changes to the specification or the estate layout; overage or clawback clauses that require you to share future development profits; restrictions on subletting or short-term letting; and for leasehold properties, the service charge structure and management arrangements. Your solicitor should report on all unusual or onerous terms before you exchange — do not be pressured to exchange without understanding what you are agreeing to.

Most new build properties come with a 10-year structural warranty from a provider such as NHBC Buildmark, Premier Guarantee, or LABC Warranty. These typically cover structural defects for 10 years, with the first two years being a developer defects period during which the developer is responsible for putting right any defects reported. Mortgage lenders require a recognised warranty as a condition of lending on new builds. Warranties are not the same as a survey — they cover structural and certain other defects but do not guarantee the quality of finishes or fittings. The warranty transfers to subsequent buyers if the property is sold within the warranty period, which is an important selling point.