Buying
New build or older home: which is better for a first-time buyer?
1 min read · Updated
The short answer
A new build is usually cheaper to run, with a 10 year warranty and no chain. An older home often has more space for the money and may hold its value better. Whichever you choose, check the price against similar homes nearby.
What's good about new
- Low energy bills: most new homes have an A or B energy rating.
- A warranty, usually 10 years. With NHBC's Buildmark, the builder puts things right for the first two years, then there's insurance for structural problems.
- No chain, and often a fixed moving date.
- Nothing to fix or replace for a while.
What to watch
- The new build premium: a brand new home can cost more than it would be worth if you sold it a year later. Compare with nearby sold prices.
- Snagging: small faults to fix after you move in. Make a list, send it to the builder, and keep a record of what they say.
- Estate charges: some new estates have a yearly charge for roads and green spaces, even on freehold houses. Ask what it is and how it can rise.
- Smaller rooms and gardens, and building work around you for a while.
What's good about older
Older homes often have bigger rooms and gardens, and established streets. They need more looking after, so budget for repairs and get a proper survey.
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A guide, not financial or legal advice. Rules and rates change, so check with your lender, broker or solicitor. Where our numbers come from.