Reserve Now or Hold off buying off Plan

Annastin

We need to start looking right now then I guess. We have the 5% deposit to hand so might as well do our best, even though we will lose money to vacate our tenancy early.

Does anyone know what happens if we proceed on a new-build house that is eligible for help2buy now and due to complete this year, but construction gets delayed until after the new cap comes in? I've heard from my friends that construction delays of 5-6 months is not uncommon?

AdrianC wrote: »

It was all announced last October.
https://www.hbf.co.uk/newsletter/view/824?pk_campaign=newsletter_824

There are regional price caps for eligibility for HtB Equity Loan purchases - London will stay at £600k, going down to £186k in the NE. And, yes, it's based on completion date.

For the SE, it's £437,600 - coast from Thames to Hampshire, so the OP just squeeks in.
For the SW, it's £349k - coast from Dorset west to Wales
For East of England, it's £407,400 - coast north of the Thames estuary

AdrianC

Annastin wrote: »

Does anyone know what happens if we proceed on a new-build house that is eligible for help2buy now and due to complete this year, but construction gets delayed until after the new cap comes in? I've heard from my friends that construction delays of 5-6 months is not uncommon?

Simples. You don't get HtB EL.

So make sure any long-stop is before the start of April 2021...

As for delays - this thread from this morning... Expected October, currently March.
https://forums.moneysavingexpert.com/discussion/6098584/new-build-delay-compensation
...and you can bet builders of expensive new-builds in the affected areas will be cutting corners and rushing towards the end of next year.

Annastin

Thanks, that's very helpful!

I guess we will have to look first at new-builds that are ready to move in or at an advanced stage. I don't think I will be able to deal with the stress of taking it too close to April 21.

AdrianC wrote: »

Simples. You don't get HtB EL.

So make sure any long-stop is before the start of April 2021...

As for delays - this thread from this morning... Expected October, currently March.
https://forums.moneysavingexpert.com/discussion/6098584/new-build-delay-compensation
...and you can bet builders of expensive new-builds in the affected areas will be cutting corners and rushing towards the end of next year.

sgun

AdrianC wrote: »

...and you can bet builders of expensive new-builds in the affected areas will be cutting corners and rushing towards the end of next year.

And not just expensive houses - £186k in the North East isn't a huge sum. We already have acres of estates up here that are way off meeting the government space standards, poky little poorly built sheds. I was in one the other day and the whole of the downstairs would have fitted into my living room and hallway space, I was shocked. And this will just get worse. Sell people the dream of a new build, they are still going to want to buy them, or at least they wont want "second hand". The developers will still win because they will make more substandard houses, cutting corners, using cheap materials. And with most FTB not really having a clue about construction/DIY the developers can get away with it. I have seen new builds that have the most shocking brickwork, all uneven and totally rushed. Most people buying them wont notice.

AdrianC

sgun wrote: »

And not just expensive houses - £186k in the North East isn't a huge sum.

There are a vast amounts of perfectly good FTB-suitable homes below that amount in that area, though.

HtB EL isn't needed up there to help people buy their first home. It might be useful to help the better-off FTB buy a nicer home, but taxpayers' money is not for that.

We already have acres of estates up here that are way off meeting the government space standards, poky little poorly built sheds.

Heavily subsidising buyers of new-build is a large part of the reason for that. If naive buyers weren't being pushed towards new-build, then builders wouldn't get away with such shonky tat.

sgun

AdrianC wrote: »

There are a vast amounts of perfectly good FTB-suitable homes below that amount in that area, though.

HtB EL isn't needed up there to help people buy their first home. It might be useful to help the better-off FTB buy a nicer home, but taxpayers' money is not for that.


Heavily subsidising buyers of new-build is a large part of the reason for that. If naive buyers weren't being pushed towards new-build, then builders wouldn't get away with such shonky tat.

And there are plenty below 224k in the North west and 228k in the Humber. And actually, plenty below 600k in the London area. 407k in Ipswich can get you a massive 4 bed detached in a lovely area. Many of the regions that you can get a cheaper (non new build) house in the NE are places where successive government underfunding and council cuts have created areas that FTB dont want to live. I'm not saying that a FTB should be able, by right, to move to a large house in a lovely, rich, green and pleasant area, but its more complicated than just saying "loads of houses in the NE, ex-industrial areas, streets empty so everyone should go and live there as a FTB" I did that myself, it was fine, but that was 20 years ago and attitudes have changed. I personally disagree with HTB as it has created the attitude that new-build is best and nothing else will do.

Slashing the NE HTB by 70% will only accentuate the inequalities within the NE area. It completely disincentives house builders from improving any standards. The cap is a simplistic solution to a more complex socio-economic landscape within the country as a whole. HTB was always a terrible idea.

This is probably a more in-depth political discussion that the thread warrants though.

Chumy

Thanks for your response. Having rented both old and new builds, we would rather buy a new build than an old one with large space that we wont be completely happy with.

It must not be a brand new building but something less than 12years old.
Access to motorways is a huge benefit for I and other half as we both travel via the motorways to work.
Thanks

pattypan4

RelievedSheff wrote: »

Buying early on a larger development does have it's advantages. The house prices tend to creep up the further into the development they progress.

It does of course mean you have to put up with the building works around you for a while.

We bought our new build last year when about a third of the houses were constructed. Building is gradually moving away from our plot and it is getting quieter but also houses the same as ours on similar plots are selling for £10k more than we paid last April.

Exacly the same here, yes I have to creep through the on-going work at the exit but at my end of just 3 houses, which are all occupied, it is very quiet and the new ones are already more expensive and nice but mine is more attractive with a bigger 100% private garden. Another upside is that the builders are on site and have dealt with my two snags. Reserve it pdq is my advice

katkatmachine

I would reserve it as soon as it’s available. Just to share, last November we went to view a 2-bed end terraced new build house, fell in love with the show room and reserved an off plan the same day. Whilst we were talking with the sales agent, signing papers and all, three couples came in asking for the same unit. It’s the last one left and we realised we were so lucky we got there super early!!! The only available left after that were two mid terraced. After a month, we checked the developer’s website again and even the mid terraced was gone as well.

ethank

I would also reserve as soon as possible. Prices generally only go up on developments. HTB will fuel a lot of sales over the next year.