Price of new build vs older property,

dannyjebb

Please can someone help clarify this for me? We have recently been looking at moving home (currently have a 2 bed apartment) there are some nice looking new builds on a good location for us. Everything I read online tells me you pay a premium up to 25% on new builds compared to similar older properties. The house we are looking at have sold 2 so far for £186k looking on zoopla at other 3 bed semis come in around £200k comparing floor plans,

Lounge - very similar size slightly bigger in new build
Kitchen/diner - slightly bigger in older houses, but in the main not as nicely laid out.
No downstairs wc in older homes.
Can't compare gardens as don't know size at new build.
Bedrooms- 3 double bedrooms with en suite to master bedroom in new build. 2 doubles and a single in older homes (although floor size of 3rd double in new home is only slightly larger than the single in older home. Older homes have no ensuite, no store cupboard next to bathroom for towels. All 3 Rooms in double have fitted wardrobes (not sure if floor plan includes or excludes this space.)
Decent size family bathroom in both new and old with bath, over head shower and toilet and sink
Detached garage on new build no garage on older home

So my question really is why is there so much talk of a 25% new home premium? When in fact a similar sized new home is 10k cheaper?

Is it to do with a perceived depreciation of a new home once moved into?

Many thanks

csgohan4

A house is worth how much you are willing to pay. So new houses people will pay more generally.

clint_S

I have a similar thing around mine. An older house of the same size as a new build can be 20% more within 1 mile of the new build sites. The only things I can put it down to that the older houses have larger gardens, people don't like buying new builds, and most new builds are leasehold.


People are selling the new build after a couple years for between £10K - £20K more than they bought them for. In most cases higher than the building is selling them for!

teddysmum

Because of the builders' intention to make as much money as possible, new build homes tend to have smaller gardens and little or no street parking (difficult if your garage is too small to take a car that you can get out of and your car/s take up the drive) for visitors.


Our house was bought new in the early 1970s and build quality seems better from back then.


New builds have better insulation, so cut energy bills, but some seem to be over insulated so summer nights can be very uncomfortable.


If I was buying nowadays, I would not buy new nor would I buy pre- 1960.

geek1981

I don't think you can generalize all newbuilds to be smaller , also newbuilds can be freehold as well. Infact most houses in an estate will be freehold. We bought new builds two times and very happy with them so far in terms of size, build quality, neighbourhood etc. i've sold my 2 bed flat for 25k over the price i bought in 3 years time. Also good thing with buying newbuilds is discounts you get, contribution to stamp duty and legals, 2 year warranty on literally everything in the house.

tlc678910

I think the new build premium refers to how much a similar "new build" house is worth a couple of years on for the second owner - like the depreciation on a brand new car - it loses lots of value suddenly when it is no longer new.

The house can tend to lose money quickly at first when the bathroom, kitchen, carpets are used rather than new. So after a year or two in a new build it is fairly common to find the house worth less than you paid - not always of course. How do nearly new "new builds" compare in price in your area?

Many people prefer older properties - style, character, perceived better build, mature garden etc so I think you are comparing apples and pears. What kind of house do you like best? I prefer older properties but (hopefully) avoiding the upkeep and maintenance costs of these would be the bonus of a new build.
Tlc

TBeckett100

What kills new builds is when people buy them and bring old furniture in.

Slinky

Depending on many factors, your new build could be on a building site for years. Somebody I know was one of the first to move in in her development. 9.5 years later they are still building within 400 yards of her house, so you have to be prepared for disruption, dirt and building noise, potentially for a verrrry long time.

Hutch100uk

They always say you pay a premium for a new build and they lose value the minute your key turns in the lock (a bit like a brand new car). However, you have to weigh up other things such as not having any maintenance or decorations costs for some time (theoretically).
We are currently in the process of buying a new build. Personally I prefer the character of an older property but the reasons for buying new are:
1. we can use help to buy so can get a bigger house
2. we don't have money for renovations and most old houses need work doing
3. we don't have to worry about boilers packing in, or electrical/plumbing issues

Go with the right house, not whether its old or new. You can only buy what you can afford.

bigfreddiel

All the people I know who have bought new builds have had problems, in one case major problems resulting in a legal action and getting their house rebuilt. The problems, no wall ties, wrong fixing of tiles so they lifted, gas pipes installed in concrete with no plastic protection, garden was one inch topsoil on rubble, plus many other problems.

The NHBC guarantee is about as useful as a glass hammer, and you have more rights as a purchaser of a can of baked beans than a house.

If you do buy a new build get it surveyed regardless of what the builder says.

Good luck fj

dannyjebb

tlc678910 wrote: »

The house can tend to lose money quickly at first when the bathroom, kitchen, carpets are used rather than new. So after a year or two in a new build it is fairly common to find the house worth less than you paid - not always of course. How do nearly new "new builds" compare in price in your area?

There are 2 second hand "new" builds currently on zoopla in the same area, 3 bed is for sale at £179k so about 10k less than the one we are looking at but every room is smaller and it doesn't have en suite. We are also looking at a home to live in for at least the next 20 years or so Don't really have plans for house hopping every few years. Hence being swayed towards one with 3 double bedrooms or there is also a 4 bed with 3 doubles and a good sized single although they don't have a confirmed price yet.

We would be making sure they are freehold. This is something we didn't ask on our initial wander down. I am pretty sure the land where the houses are being built is old council land, so I think Bellway will own the land and so I wouldn't think it would be a problem making sure we get freehold even if its marketed as leasehold.

Thanks