Snagging and warranties
New builds commonly have 'snags' — unfinished or defective details, from poor paintwork to more serious issues. Arrange a professional snagging inspection before or soon after completion, and report snags to the developer in writing so they're fixed under warranty.
Most new homes come with a structural warranty (such as NHBC Buildmark or an equivalent) lasting ten years, with the first two years usually covered directly by the developer. Understand what the warranty covers and the process for claims before you complete.
Estate charges and leasehold traps
Many new-build estates levy an annual estate-management or service charge for maintaining shared roads and green spaces that the council hasn't adopted. These charges can rise and are sometimes poorly regulated — ask exactly what you'll pay, to whom, and how increases are controlled.
Check the tenure carefully. New-build houses have sometimes been sold leasehold with ground rents and onerous terms — a practice reforms are curbing, but you should confirm whether you're buying freehold, and scrutinise any ground rent, permission fees or buy-back clauses.
Valuation, incentives and the premium
New builds can carry a premium over comparable older homes that may not hold at resale, so be wary of paying top price expecting instant equity. Developers often offer incentives — help with stamp duty, a deposit contribution, or fittings — which can be worth more than a small headline discount.
Your lender's valuation matters: if it comes in below the purchase price, you may need to renegotiate or find a bigger deposit. Comparable evidence from nearby resales helps you judge whether the price is realistic.
Reservation and the buying process
Buying off-plan or new usually starts with a reservation fee to take the plot off the market while contracts are prepared, often with a deadline to exchange. Read the reservation agreement for what's refundable and the timescales you're committing to.
Even without an old building to survey, the legal checks still matter — the title, estate charges, planning conditions and warranty all need reviewing. A pre-offer read on the development's planning and the surrounding area helps you buy with eyes open rather than from the show home alone.
Frequently asked questions
Do I need a survey on a new-build?
A snagging inspection is the new-build equivalent and is well worth it. A full structural survey is less critical than on an older home, but the legal review of title, estate charges and warranty is essential.
What is an estate or 'fleecehold' charge?
An annual charge for maintaining unadopted roads and communal areas on a private estate. They can escalate and be hard to challenge, so confirm the amount, the manager and how rises are controlled before you buy.
Should I buy a new-build house leasehold?
Be cautious. New-build houses sold leasehold have attracted criticism over ground rents and fees, and reforms aim to curb the practice. Confirm the tenure and take legal advice on any leasehold terms.