Top Tips on Buying New Build Property in 2010

By Martin Roberts- TV Property Expert, Author and presenter of ‘Homes under the Hammer’ offers advice and guidance on all things property related 

1. Most budgets are catered for - Government targets on affordability mean that many property developments have to take account of “affordable” housing needs, and that means a range of properties on most developments.

2. Just because it's new - don't expect it to be problem free – Some new built properties can, and do suffer from various problems; from minor issues on finishing, to major stuff such as incorrectly installed boilers and windows etc. A failure of quality control and supervision from building contractors means that you need to expect problems.

3. Days of 'No Money Down' are gone - Not so long ago, investors could buy new build with effectively zero deposit (or ‘No Money Down) by buying at a discount and using the market value of the property for the mortgage, resulting in the investor having immediate equity as soon as he/she completed. Aggressive investors might then re-mortgage straight away after completion to ‘release’ any capital that they have had to put into the deal - but this practise has now largely ceased. The banks are now basing the amount that they will lend to buy-to-let investors on the price of the new-build home, minus the discount.

4. Don't be seduced by large discounts and incentives if fundamentals don't stack up -Exercise the same restraint and due diligence on buying a new build property as you would a second-hand home and don’t be seduced by large incentives if the basics about the property don’t stack up. There may be a good reason why the property is unsold.

5. Ensure you have the funds to complete - If you decide to buy Off Plan make sure you have the means to complete. Many investors have become unstuck by securing Off Plan properties on the proviso that they will borrow the full balance due on completion by means of a mortgage. But with valuations coming in lower than previously, many cannot raise the rest of the cash. Having signed a purchase contract, you are legally obliged to complete on the transaction.

6. Compare local deals - Look through the property pages of your local newspaper and you’ll see a variety of incentives on offer because the properties are failing to sell. They are particularly prevalent towards the end of the developer’s financial year, when targets have to be achieved.

7. Consider Part Exchange - Many developers also offer a part-exchange facility, whereby you sell your old home to them and are therefore free to purchase without the bother, expense and potential delays of selling on the open market. Clearly, you must ensure that the price you are receiving for your property is a fair one by getting several independent valuations.

8. Understand what the developer is responsible for - Before you complete, check that your property is covered by a structural warranty from a reputable provider like the National House Building Council (NHBC). Be clear about what is included in the purchase price, what the developer can arrange at extra cost and what you yourself need to organise.

9. Make sure you do a full snagging visit - by inspecting the property thoroughly with a company representative. Report in writing any faults that are the developer’s responsibility, and keep a record of phone conversations. So long as the property is less than two years old, you can force the developer to make any reasonable repairs to the property.

10. Research the flood risk - A lot of new build properties are being developed on flood plains, despite objections raised by the Environmental Agency. The result is that the shiny new home could end up being a water-logged disaster at some point in the future. Therefore when looking at a new build development, take a look at the surrounding area. You can take a look on the Environmental Agency’s website (