The new build process is meaningfully different from buying a resale property. Different timeline, different legal risks, different pressure tactics. This module covers everything specific to buying from a developer.
This module is only relevant if you are considering a new build property. If you are buying resale, skip this and return if your search takes you in this direction. New builds make up roughly 15% of UK house purchases annually - the process is distinct enough to warrant its own guide.
Why new build is a different purchase
When you buy a resale property, you can see what you are getting. You walk around it, have it surveyed, and make an informed decision about something that exists. When you buy new build, you often exchange contracts on something that is still a hole in the ground. The show home you visited is dressed to impress, the kitchen in your plot will probably be a different spec, and the completion date the developer gave you has a decent chance of moving.
None of this makes new build a bad decision - there are genuine advantages. No chain, modern energy efficiency, NHBC warranty, and the ability to choose finishes. But the advantages come with specific risks that catch buyers off guard, particularly around the compressed exchange timeline, the solicitor conflict of interest, and the snag process.
The most important thing to know upfront: Once you exchange contracts on a new build, you are legally committed to complete - even if the property is not finished on time, even if the spec has changed slightly, and even if your mortgage offer has expired and you need to reapply. Understand what you are committing to before you sign.
Section 1
Is new build right for you?
Work through the honest pros and cons before going any further. This is not developer marketing - it is a genuine assessment.
Genuine advantages
No chain. You are buying from a developer, not someone who needs to find somewhere to live. No chain collapse risk.
NHBC Buildmark warranty. 2-year developer defects period, 10-year structural warranty. Resale properties have no equivalent protection.
Modern energy efficiency. New builds typically achieve EPC ratings of A or B. Lower bills, better insulation, often a heat pump rather than a gas boiler.
Choose your finishes. Many developers offer kitchen, flooring, and tile choices if you reserve early enough in the build.
Scheme eligibility. First Homes scheme discounts and some Help to Buy successor schemes apply only to new builds.
Move-in ready. No redecoration, no immediate maintenance. Everything is new.
Genuine risks
New build premium. New builds typically sell at 10-15% above comparable resale properties in the same area. If you sell within a few years, you may take a loss.
Buying off-plan. You are committing to something that does not exist yet. The show home is not your home.
Build delays. Delays of 3-6 months are common. Longer delays happen. Your mortgage offer typically expires after 6 months.
Leasehold risk. Some new builds - particularly flats - are sold leasehold. Ground rents, service charges, and event fees can be significant. Always check tenure.
Developer pressure. Sales teams are incentivised to exchange quickly. 28-day exchange deadlines are standard and are in the developer's interest, not yours.
Part-build estates. You may move into a property surrounded by an active construction site for 1-3 years.
Snagging. New builds almost always have defects on completion. The question is whether you find them before or after you move in.
Section 2
The new build timeline
The new build process looks similar to resale on the surface. The key differences are the compressed exchange window, the uncertain completion date, and the fact that you may be buying something that does not exist yet.
1
Week 1-2
Visit the development and reserve a plot
You visit the sales office, view the show home, choose a plot (or are shown available plots), and pay a reservation fee - typically £500-2,000. This takes the property off the market while you proceed. Reservation fees are usually refundable if you withdraw before exchange, but always get this in writing.
2
Week 1-4 (simultaneously)
Instruct a solicitor and arrange your mortgage
Do both immediately on reservation. Developers typically require exchange within 28-42 days of reservation. That is a tight window for conveyancing and mortgage processing. Have your solicitor and mortgage broker lined up before you visit the development, not after.
3
Week 4-6
Exchange of contracts
You pay your deposit - typically 5-10% - and exchange contracts. You are now legally committed to complete. The completion date is usually expressed as a window rather than a fixed date: "Q3 2026" or "anticipated spring 2026." This is normal and is not the developer being evasive - builds genuinely run to variable schedules.
4
Exchange to completion - variable
Build period
The property is built. You have no meaningful involvement during this period. The developer should provide build updates but frequency varies. If the development is already built or nearly complete, this stage is short. If you are buying off-plan on an early phase, this could be 12-24 months.
5
2-4 weeks before completion
Legal completion notice and snag inspection
The developer issues a completion notice giving you typically 10 working days to complete. This is when you do your pre-completion inspection and snag list. Do not skip this step.
6
Completion day
Keys and legal ownership
Funds transfer, you get the keys. The 2-year developer defects period begins from this date. Log everything and keep records from day one.
If your build overruns: A mortgage offer typically lasts 6 months. If completion slips beyond that, you will need to reapply - potentially at a different rate. Your broker should flag this risk and some lenders offer new build extensions. Discuss this before you exchange.
Section 3
Show homes and the sales process
What the show home is not telling you
Show homes are designed by professional stylists with a budget that does not reflect the standard spec. The furniture is scaled down to make rooms look larger. The kitchen may be an upgrade spec with a premium you would pay extra for. The garden is fully landscaped - yours probably will not be. The flooring throughout may be an optional extra.
Before you fall in love with the show home, establish exactly what is included in the standard spec for your plot and what costs extra.
Item
Included in standard spec?
Upgrade cost if not
Notes
Upgrades are almost always cheaper during the build than after. Adding an extra socket before the walls are plastered costs the developer very little. Adding one after you move in means a plasterer, decorator, and electrician. If there are upgrades you want, negotiate them at reservation - not after exchange.
Section 4
The solicitor question
Why developer-recommended solicitors are a conflict of interest
Most developers offer incentives to use their recommended panel solicitors - sometimes a contribution toward legal fees, sometimes just a smoother process because the solicitor knows the developer's standard contracts. These solicitors handle hundreds of transactions for the same developer. They know the developer's team, they understand the process, and completions tend to go smoothly.
The problem is structural. A solicitor who derives significant income from a developer has an incentive to keep that relationship intact. A truly adversarial negotiation - pushing back hard on unfavourable contract terms, insisting on amendments, raising concerns about lease terms - risks the relationship. They are unlikely to do things that might hold up completions or irritate the developer's legal team.
This does not mean developer-recommended solicitors are corrupt or incompetent. Many are perfectly adequate. But you should understand the conflict before you decide.
Our recommendation: Use an independent solicitor who is experienced in new build conveyancing. If you do use a panel solicitor, ask them directly: "Is there anything in this contract that is unfavourable to me that you would push back on if this were a resale purchase?" Their answer will tell you a lot.
Section 5
Legal differences to understand
Freehold vs leasehold - the most important check
New build houses are almost always sold freehold. New build flats are almost always leasehold - you own a lease on the property, not the property itself. Leasehold is not automatically problematic but it requires understanding.
Key things to check on any leasehold new build:
Lease length. Should be 999 years or 125 years minimum. Anything under 85 years is a problem for future mortgage and resale.
Ground rent. Should be zero (peppercorn). Any ground rent - especially one that escalates - is a red flag following the Leasehold Reform Act.
Service charge. What is the annual charge, what does it cover, and how is it calculated? Get the estimated service charge in writing.
Event fees. Some leases charge fees on sale, subletting, or renovation. These should be zero on any modern leasehold.
Who owns the freehold. Is it the developer, a management company, or is it being offered for sale to leaseholders?
First Homes scheme
First Homes provides new build properties at a minimum 30% discount to first-time buyers who meet income and local connection criteria. The discount is locked into the property title permanently - when you sell, you must sell at the same percentage discount to another eligible buyer. This limits your buyer pool but the purchase price advantage is real.
Income cap: £80,000 per year household (£90,000 in London). Some local authorities set lower caps. The property must be your primary residence.
Section 6
The snag list - your most important job before completion
What snagging is and why most buyers do it wrong
A snag is a defect in the finished property - anything from a door that does not hang correctly to a scratch on a worktop to a gap in the skirting board to an electrical socket that is not flush. New builds almost always have snags. The question is not whether your property will have them but how many and how serious.
You have the right to inspect the property before legal completion. The developer will invite you to a "pre-completion inspection" - typically a 1-2 hour walk-around with a sales representative. Many buyers treat this as a formality and miss things that cost them time and stress later.
The principle is simple: defects found before completion are the developer's legal obligation to fix. Defects found after you move in are much harder to get fixed - not impossible, but developers have less urgency when you are already in the property and have already paid.
Do not be rushed. Sales teams sometimes suggest that snagging is a minor formality and encourage you to complete quickly. Your legal right to a pre-completion inspection exists for a reason. Take the full time allocated. Bring a torch. Open every cupboard. Run every tap. Test every socket. If you find significant issues, you can ask for completion to be deferred until they are fixed.
External inspection
Roof visible from ground - any missing or damaged tiles, ridge issuesBinoculars useful for this
Gutters and downpipes fitted correctly, no gaps or misalignments
External walls - render or brickwork consistent, no cracks or gaps
Windows - all open, close, and lock correctly. No scratches on glass or frames
Front door - fits correctly, locks smoothly, letterbox aligned
Garden - is the spec as agreed? Turf laid if included? Fencing complete and upright?
Driveway or parking - surface complete, drainage channel clear
Outside tap fitted if specified
Every room
Walls - painted evenly, no roller marks, misses, or drips. Check cornersLook with a torch held at a low angle - it reveals uneven surfaces invisible under normal light
Ceilings - flat, no cracks, no water marks, coving fitted neatly
Skirting boards - fitted flush, mitred joints neat, no gaps at floor
Doors - hang straight, open and close smoothly, no rubbing. Handles tight
Every electrical socket and light switch - flush to wall, level, working
Flooring - level, no squeaks (walk every inch), edges fitted neatly
Windowsills - level, sealed, no cracks in plaster around frames
Kitchen
Every cupboard and drawer - opens and closes smoothly, hinges aligned
Worktop - no scratches, chips, or gaps at joints and upstands
All appliances present and functioning - run a test cycle on dishwasher and oven
Extractor fan working and vented (not just recirculating unless specified)
Hot and cold water pressure at sink - run both taps fully
Silicone seals around sink - neat, no gaps, no mould
Plinth panels fitted and level at base of units
Bathrooms and en-suites
Tiling - grout even, no cracked tiles, no lippage between tiles
Bath or shower tray - level, no movement, silicone sealed neatly
Shower screen or door - fits correctly, no leaks, seals intact
Toilet - flushes correctly, cistern fills and stops, no movement at base
Basin - hot and cold water, waste drains quickly, sealed at wall
Extractor fan working and timed correctly
Heated towel rail working
Heating and services
Boiler or heat pump - running, pressure correct, instructions left
Every radiator - turn on the heating and check all radiators get hot
Consumer unit (fuse box) - clearly labelled, RCD fitted, all circuits working
Stopcock location confirmed and working
Smoke and carbon monoxide alarms fitted and tested
EV charger fitted and working (if part of spec)
Smart meter fitted (if specified)
Consider a professional snagging company. Independent snagging inspectors typically cost £300-600 and will find significantly more defects than a first-time buyer walking around alone. They know what to look for, they have the right tools, and their reports carry more weight with developers. For a 3-4 bedroom new build, they typically log 50-150 snags. That is normal. It is not cause for alarm - it is cause for a thorough handover process.
Section 7
The NHBC warranty and your rights post-completion
How the Buildmark warranty works
If your developer is NHBC-registered (most volume housebuilders are), your property comes with a Buildmark warranty. It has two distinct phases:
Years 1-2: Developer defects period. Any defect that arises in the first two years which is caused by the developer's failure to build to NHBC standards is the developer's responsibility to fix. This includes most snags and any defects that emerge as the property settles. Report all defects in writing to the developer - email creates a paper trail.
Years 3-10: NHBC structural insurance. If a major structural defect arises, NHBC's insurance covers it. This does not cover general maintenance, cosmetic issues, or damage you have caused. It covers structural problems caused by the original construction.
Log everything from day one. Take dated photographs of every defect as it appears. Send written reports to the developer by email with a clear subject line. If the developer is slow to respond, escalate to NHBC's resolution service. Keep a log of every contact, date, and response.
Date reported
Defect description and location
Developer response
Date fixed
Resolved?
Before you proceed with a new build purchase
You understand the new build process is different from resale - particularly the exchange timeline and off-plan risk
You have listed everything included in standard spec and everything that costs extra
You have considered the solicitor conflict of interest and made a conscious choice
You understand the tenure - freehold, leasehold terms, and any service charges
You have a plan for if the build delays beyond your mortgage offer expiry
You will do a thorough pre-completion inspection - ideally with a professional snagging company
You know your NHBC warranty rights and will log every defect in writing from day one
Educational worksheet only. Not financial, legal, or property advice. The Investing Couple is a personal finance content brand. For advice specific to your situation, speak to a qualified solicitor, mortgage broker, and independent surveyor.