Why new build homes make smart investments
New build

New build homes are growing in popularity in the UK as more first-time buyers and property movers look at new developments for their future place to call home.

Newly built properties often boast lower running costs due to the inclusion of more energy-efficient materials and technologies which can be a significant plus point for buyers. Moreover, there is a tendency for new build developments to create a greater sense of community compared to already established groups of properties which can be a draw card for families.

Last but not least – and the focus of our post today – new build properties can often generate greater resale figures or allow homeowners to build up significant equity if their property does appreciate over time.

Did you know…

The Office for National Statistics (ONS) states that just over 210,000 new homes were built across the UK during the 2022/2023 fiscal year.

These properties have been built in response to a growing demand for more housing and the popularity of new build developments, especially among younger first-time buyers. 

Image showing new build homes

Newly built properties often boast lower running costs.

The financial benefits of investing in new build homes

Many newly built homes which are kept in good condition appreciate over time which could allow the homeowner to move up the property ladder more easily if they decide to sell.

Alternatively, the homeowner could decide not to sell but to tap into the growing equity within the property due to its rising value.

Newer properties often have lower maintenance and repair expenses due to the advancements in building materials and techniques that are usually used on these builds. This is good for the homeowner wishing to keep the property in good condition, ready for an eventual resale and it is also appealing to prospective buyers who don’t want to buy a property considered a “money pit”. Likewise, the energy efficiency of newer homes is a big draw for all buyers.

The government and lenders are making new build homes more attractive with new schemes which help first-time buyers get onto the property ladder with a lower deposit, provided they’re buying a newer property. This drives up competition for new build homes.

On the other hand, you may decide to turn the new build into a rental property and generate income while maintaining ownership. The property rental market is saturated with those seeking newer builds as they are less likely to experience significant maintenance issues while renting. As such, new builds can often offer lucrative rental yields to property investors.

Of course, we’ve been speaking in general terms here. Not every new build home will be a fantastic investment and you should always do your own research.