Buying a New Build Home in the UK: Complete Guide

Buying a new build is faster and more predictable than an open market purchase — there's no chain, no negotiating with a seller, and developers are often keen to complete within specific financial quarters. But it comes with its own set of risks: strict completion deadlines, short mortgage offer windows, and incentive structures that can hide real costs.

This guide covers everything that's different about buying new build — the process, how to negotiate developer incentives, what to watch out for, and why the timeline matters more than it does with an open market purchase.

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How New Build Is Different From Open Market

The short version: new build is faster but more rigid. An open market purchase has chains, negotiation, and flexible timing. A new build has no chain, set developer processes, and inflexible deadlines. Both have advantages.

The mortgage side differs too. Most lenders set separate loan-to-value limits for new build. On houses the gap has mostly closed: most of the big high-street lenders (such as Halifax, Nationwide, Barclays, NatWest, Santander and TSB) lend up to 95% on a new-build house, as they do on a second-hand one, though HSBC, Virgin Money and many smaller lenders stop at 90%. Flats are where the caps bite: 85% is the most common limit on a new-build flat (some lenders go to 90% or 95%, others stop at 80%), so a new-build flat often needs a bigger deposit than an existing one. Most 98-100% deals exclude new build (Skipton's Track Record is an exception for houses), and at some lenders developer cash incentives aren't accepted, or are capped, above 90% LTV. Our sister site New Build Mortgage Guide tracks those caps lender by lender.

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The New Build Buying Process

The stages are similar to an open market purchase but with important differences at each step.

1. Check Affordability and Get a DIP

This stage is identical to open market. Know what you can borrow before you start viewing show homes. The key difference: once you reserve a new build, the clock starts ticking, so having your mortgage affordability clear in advance is even more important.

2. Viewing and Choosing a Plot

Show homes are marketing tools — they're usually finished to a higher specification than the standard build. When viewing, ask specifically:

• Which plots are still available and at what price
• What's included as standard vs what's a paid upgrade
• What the actual build stage is for the plot you're considering (foundations, shell, fitting out, complete)
• What the expected completion date is and how confident they are in it
• What warranty is included (usually NHBC 10-year or similar)

Off-plan buying means committing before the property is built. This carries more risk but can come with better incentives. The property's value can move either way before completion, and if it's valued below the agreed price, your lender may lend less. Buying a completed new build means you can see exactly what you're getting but may have less negotiating power on incentives.

3. Reservation Fee and Reservation Agreement

Instead of making an offer, you reserve a specific plot by paying a reservation fee. This typically ranges from £500 to £2,000 and is usually deducted from the purchase price at completion.

What the reservation fee does:

• Takes the plot off the market
• Locks in the price at today's rate (important with off-plan)
• Gives you an agreed timeframe to exchange contracts

The reservation agreement often runs for around 42 days — for example, a 14-day cooling-off period followed by 28 days to exchange contracts — but the period varies by developer, so check yours. If you don't exchange within it, the developer can put the plot back on sale and you may lose the plot and part of the fee (the deductions set out in your agreement). This is the first critical deadline. These protections apply if your developer is registered with one of the new-homes codes (New Homes Quality Code, Consumer Code for Home Builders or Consumer Code for New Homes). Most are, but check your reservation agreement.

What to check before paying the reservation fee:

• The exact specification for your plot (in writing)
• All agreed incentives (in writing)
• The expected completion date
• Which new-homes code the developer follows (New Homes Quality Code, Consumer Code for Home Builders or Consumer Code for New Homes), and exactly what it deducts from the fee if you cancel after the 14-day cooling-off. The agreement must state this, and it should only be reasonable admin costs.
• That the plot number matches the one you viewed

4. Mortgage Application — Speed is Critical

You now have 42 days to get from reservation to exchange — a 14-day cooling-off period at the start and then 28 days to complete the work. This is where buyers without a DIP already in place can get into trouble.

Why this matters: A full mortgage application typically takes 2-4 weeks. Conveyancing on new builds is usually faster than open-market purchases because much of the documentation is standardised across the development. 42 days is achievable but still requires everything moving efficiently with no delays on your side, especially if you use the 14-day cooling-off period for final due diligence rather than starting the mortgage work immediately.

What good buyers do: Have an affordability check completed, a DIP in place before viewing, a broker briefed, and a solicitor selected before paying the reservation fee. Then the moment you pay, the mortgage application and legal work start simultaneously.

What happens if you can't exchange in 42 days: Most developers will grant a short extension, often 7-14 days, but usually only once and sometimes for a fee. If you can't exchange by the deadline (or any extension), the developer can end the reservation and re-sell the plot. Under the new-homes codes it can keep only the deductions your reservation agreement sets out, not the whole fee. Give written notice to cancel so the refund is triggered.

5. Mortgage Offer — Watch the Expiry Date

Standard mortgage offers are valid for 3-6 months depending on the lender. For open market purchases this is usually fine. For new build, especially off-plan, this becomes a major risk.

The problem: If you're buying off-plan and completion is 8 months away, a standard 6-month offer won't last. Unless your lender gives a longer new-build offer or agrees an extension, you'd need to reapply, the rate could have changed, your circumstances could have changed, and the lender isn't obliged to offer the same terms.

The solution: Many mainstream lenders give longer offers on new builds. Nationwide, Coventry, Skipton and several other building societies give 9 months as standard, and Santander does on its new-build products. Others start at 6 months but will extend a new-build offer to about 12 months in total: Barclays and Accord by a further 6 months, NatWest by two 3-month extensions, TSB by 180 days. Extensions aren't automatic. The lender usually runs a fresh credit search, may revalue the property or recheck affordability, and you may have to change product. When choosing your lender, the new-build offer period and extension terms matter as much as the rate.

Ask your broker specifically about mortgage offer extensions for new build before you choose a lender.

6. Conveyancing for New Build

New build conveyancing has some specific considerations:

Developer's solicitor pack: The developer's solicitor will send your solicitor a standard pack of documents for the development. This usually includes the planning permissions, building regulations approvals, warranties, estate management arrangements, and any restrictive covenants.

Management company and estate charges: Many new build estates have a management company for shared spaces and roads (called "rent charges" or "estate rentcharges" in some developments). Your solicitor needs to confirm these are reasonable and clearly documented. Some recent new build estates have had issues with escalating management charges that weren't clearly flagged at purchase.

Help to Buy and other government schemes: Schemes add conveyancing work. An equity loan (Help to Buy – Wales) is secured as a second charge on your home; a shared ownership purchase means reviewing the housing provider's lease; a First Homes purchase carries a restriction on the title that keeps the discount for future buyers; and a Lifetime ISA withdrawal must be requested by your conveyancer.

NHBC or equivalent warranty: Confirm the warranty is in place and registered. The warranty typically covers major structural defects for 10 years and workmanship issues for the first 2 years.

7. Exchange of Contracts

You exchange contracts much earlier in the process than open market — often while the property is still being built. The exchange commits you to completing once the property is ready.

Key exchange considerations for new build:

• Long stop date: The contract should include a "long stop date" — the latest date the developer has to deliver the property before you can pull out without losing your deposit. This protects you if the build is seriously delayed. There's no standard long stop date. It's whatever your contract says, and it should fall well after the developer's expected completion date (often six months or more later), so on an off-plan home it can be more than a year after exchange. Ask your solicitor to check the date, whether the developer can extend it (for example for force majeure), and how it lines up with your mortgage offer's expiry.
• Completion notice: The developer will give you a formal completion notice (usually 10-14 days) when the property is ready. You must complete within this window.
• Deposit payment: Typically 10% of the purchase price on exchange, though some developers accept 5% for certain schemes.

8. Completion

Completion on new build works differently from open market because the property may have just been finished.

What's different:

• Completion notice triggers the deadline: Once the developer serves notice, you have a tight window (typically 10-14 days) to complete. Miss it and you risk losing the property and your deposit.
• Practical completion vs legal completion: Practical completion is when the builder considers the property ready. Legal completion is when you buy it. There can be snagging issues between these points.
• Snagging inspection: You (or ideally a professional snagger) should inspect the property before legal completion, note every defect, and submit a snagging list to the developer. Issues should be fixed, ideally before you move in but at minimum within the warranty period.

9. Post-Completion — Snagging Period

In the first few months after completion, you're likely to find additional snagging issues as you live in the property. The developer is typically obliged to fix these under the 2-year workmanship warranty.

For a room-by-room snagging checklist, how to escalate disputes, and what to do if the developer won't fix issues, see our dedicated guide: New Build Snagging Checklist & Process →

Common snagging issues:

• Doors not closing properly as the building settles
• Cracks in plasterwork (hairline cracks are normal, larger ones are defects)
• Kitchen fittings coming loose
• Paint finish issues
• Heating system problems once tested under real use

Keep a detailed list with dates and photos. Submit it to the developer in writing. Most reputable developers will send someone out to fix issues within a few weeks, though persistence is sometimes needed.

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Developer Incentives: How to Negotiate

New build pricing is usually less negotiable than open market because developers are selling multiple identical plots and don't want to undermine pricing for other buyers. However, they'll often add significant value through incentives instead.

For a full breakdown of every incentive type, developer economics, and the tactical scripts that get the best results, see our dedicated guide: How to Negotiate New Build Incentives →

Common incentives to ask for

Paid stamp duty. Developer covers your stamp duty land tax, which can be worth thousands depending on the property price. Most lenders treat developer-paid stamp duty as a cash (financial) incentive. It counts toward the lender's incentive limit (usually 5% of the price, or a loan-plus-incentives ceiling of 95% at Halifax and TSB), and several lenders accept no cash incentives above 90% LTV. Confirm with your broker before agreeing.

Deposit contribution. Developer contributes towards your deposit, typically 5% of the purchase price. Like paid stamp duty, it counts toward the lender's incentive limit. Lenders still want at least 5% from your own money, and many won't accept builder cash incentives if you're borrowing more than 90%.

Upgraded specifications. Free or discounted upgrades to kitchens, bathrooms, flooring, or appliances. Can be worth £5,000-£20,000+ depending on what you negotiate.

White goods included. Fridge, washing machine, dishwasher as standard. Sometimes worth £2,000-£4,000.

Flooring and curtains. Usually not included in the base price — developers sometimes throw these in to close a sale. Worth £3,000-£8,000 for a typical property.

Part exchange. Developer buys your current property so you can avoid the chain. Usually the offer is below market value (5-10% below) but saves you the time, hassle, and cost of selling separately.

Legal fees. Developer covers your solicitor's fees, typically worth £1,000-£1,500.

Mortgage fees. Developer covers arrangement fees and valuation fees, worth up to £1,000-£2,000.

How to negotiate

Know what other developments are offering. Check competitor sites in the area and see what their current incentives are. This gives you leverage.

Timing is key. End of quarter (March, June, September, December) is when developers want to complete sales for financial reporting. This is your best negotiating window.

End of phase matters. When a developer is selling the last few plots in a phase, they want to move on to the next phase. These are often the most flexible sales.

Ask for more than you expect. Start with a list of everything you'd want, then let the developer push back. You're unlikely to get paid stamp duty, deposit contribution, AND free flooring — but asking for all three and negotiating down often nets more than asking for just one.

Get it in writing. Every incentive must be in the reservation agreement and the sale contract. Verbal promises from the sales office don't count when the solicitors are doing the paperwork.

Incentives to be cautious about

Developer mortgage deals. If the developer has a preferred lender offering a special rate, check it against other lenders' deals before committing. Preferred lender rates aren't always the best available. You're not obliged to use them, but if an incentive depends on using the developer's preferred lender or adviser, you may lose that incentive if you go elsewhere.

"Assisted move" schemes. Sometimes these are genuinely helpful, sometimes they're marketing dressed up. Check the specifics.

Incentives that affect your mortgage LTV. Some lenders will subtract the value of cash incentives (paid stamp duty, deposit contribution) from the purchase price when calculating the LTV. This can reduce how much you can borrow or put you in a higher LTV band. Always check with your broker before accepting cash incentives — our sister site's guide to builder deposit contributions (a deposit paid by the developer) sets out the ~5% cap and which lenders accept them.

Specification upgrades that don't match your actual taste. A £10,000 kitchen upgrade isn't worth £10,000 to you if it's not what you'd choose. Cash-equivalent incentives (deposit contribution, paid fees) are more flexible.

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Things to Watch Out For

Offer expiry and extensions

The 42-day reservation window (14-day cooling-off plus 28 days to exchange) is the first deadline. If you miss it the developer can re-sell the plot and keep the deductions your agreement sets out (not the whole fee, under the new-homes codes). Some developers offer one extension (typically 7-14 days, sometimes for an additional fee). Very few offer two extensions. Plan your timeline assuming you cannot get an extension.

Mortgage offer expiry before completion

The single biggest risk with off-plan purchases. If your lender's offer runs out before completion and it won't extend it, you'll need to reapply. Rates may have changed. Your circumstances may have changed. The lender is not obliged to re-offer at the same terms. Confirm the new-build offer period and extension terms before choosing your lender.

Build delays

Construction delays are common. Weather, supply chain issues, labour shortages, and planning problems can push completion dates back. Your contract should include a long stop date protecting you if delays exceed the agreed window.

What you can do: Ask the developer about their track record for on-time delivery on previous phases. Ask for updates monthly during the build. Keep your mortgage broker informed so you can react quickly if your offer is approaching expiry.

Down-valuations

Sometimes the lender's valuer assesses the property at less than the purchase price. This is more common with new builds because the "new build premium" (similar to driving a new car off the forecourt) means the property may be worth less on the open market immediately after completion.

What happens if it's down-valued: The lender will lend based on the valuation, not the purchase price. Your options are:

• Make up the difference with extra deposit — straightforward but needs the cash available.
• Renegotiate with the developer — usually harder on new builds than open-market purchases, but not impossible, especially near the end of a financial quarter.
• Apply with a different lender — your broker can submit a fresh application to a different lender, which triggers a new valuation by a different surveying firm. Surveyors are independent and different firms can arrive at meaningfully different figures on the same property.
• Challenge the down-valuation — submit three genuinely comparable properties sold within the last 6 months (same road or estate ideally, same size, same plot type) to the lender with a written challenge. This is a formal process but the success rate is low — surveyors rarely revise and lenders usually back their surveyor's opinion.
• Pull out — as a last resort. You get the whole reservation fee back if you cancel within the 14-day cooling-off; after that the developer must refund it less the deductions set out in your reservation agreement.

Estate management charges

Newer developments often have estate management companies charging annual fees for communal spaces (roads, parks, green areas). These can start reasonable and escalate over time. Some recent developments have had serious issues with this. Your solicitor should flag any concerning terms — make sure you understand exactly what you're committing to annually.

Restrictive covenants

New build contracts sometimes include restrictive covenants (rules on what you can do with the property). These can include restrictions on satellite dishes, extensions, business use, or changes to the exterior. Read these carefully.

Incentive vs price confusion

Sometimes a headline price looks competitive but the developer has priced in incentives. Always ask: "What would the price be without the incentives?" This tells you the real market value and helps you assess whether the deal is genuinely competitive.

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New Build vs Open Market: Which Is Faster?

New build is usually faster from "offer accepted" to "keys" if the property is already built. A completed new build with no chain can go from reservation to completion in 6-8 weeks. An open market purchase rarely completes in under 10 weeks.

Off-plan new build is the slowest option. If you're buying off-plan with 12-18 months until completion, you're waiting longer than any open market purchase, even though the actual legal process is fast.

Chain-breaking with new build. The biggest speed advantage is the lack of chain. If you're struggling to find an open market property that doesn't involve a chain, new build solves that problem entirely.

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Government Schemes for New Build

Several schemes specifically target new build purchases:

First Homes scheme. Still open, but national planning policy no longer requires it and very few are being built (292 completions in England in 2024-25), so check with your council. First-time buyers buy at 30-50% below market value; income and price caps apply. See our First Homes guide.

Shared Ownership. Available on many new build developments. Under the current model you can buy an initial share from as little as 10% (up to 75%) and pay rent on the rest, staircasing later in increments of as little as 5%. Monthly costs can be lower than outright purchase but with ongoing rent. Shared ownership is often most useful for buyers with a smaller deposit — because you're only buying a share of the property, your deposit counts as a much higher percentage of the share you're buying. For example, a £15,000 deposit on a £300,000 property is 5% (95% LTV), but the same £15,000 against a 40% share (£120,000) is a 12.5% deposit (87.5% LTV), which unlocks better rates and a wider choice of lenders.

Help to Buy equity loan. The England scheme closed to new applications on 31 October 2022; completions were due by 31 March 2023, with a final extended cut-off of 31 May 2023. Help to Buy (Wales) was extended in July 2026 and now runs to 31 March 2027. Help to Buy (Scotland) is closed and is not reopening — Scottish buyers should look at the differently-structured shared-equity/LIFT routes instead.

Lifetime ISA. Can be used towards new build purchases up to £450,000. The 25% government bonus applies. The government plans to offer a new First Time Buyer ISA in place of the Lifetime ISA but hasn't set a launch date. Until it launches you can still open a LISA, and if you already have one you can keep paying into it under the current rules afterwards, though you can pay into only one of the two accounts in any tax year.

Your First Home (England, announced, not yet open). On 26 September 2026 the government announced Your First Home, a new equity-loan scheme in England for first-time buyers of new-build homes from developers that sign up to it. It is expected to support 2.5% deposits backed by a 20% government-backed equity loan, with an initial interest-free period, a household income cap and local property price caps. The details, costs and timetable are due at the Budget on 28 October 2026. It isn't open yet, so you can't apply, and no launch date has been set. It is a different scheme from First Homes.

Each scheme has its own eligibility rules and complications. A qualified mortgage broker can advise on which (if any) apply to your situation.

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Should You Buy New Build?

This guide is informational — we don't recommend new build over open market or vice versa. Both have advantages and the right choice depends on your priorities.

New build advantages:

• No chain, faster completion when the property is ready
• Modern energy efficiency, lower bills
• 10-year warranty covering major issues
• Everything is new — no immediate repair costs
• Higher spec options available
• Negotiable incentives worth thousands

New build disadvantages:

• New build premium means potential down-valuations
• Estate management charges can escalate
• Restrictive covenants
• Snagging period can be frustrating
• Mortgage offer expiry risk for off-plan
• Developer-controlled timeline with inflexible deadlines
• Less character than older properties

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Ready to Check Your Affordability?

Whether you're buying new build or open market, an estimate of what 57 lenders might lend you is a useful first step. Some lenders are more generous with new build purchases, others have specific new build products. Our tool shows you lender-by-lender estimates.

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No credit search. Results in about 5 minutes.

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Frequently Asked Questions

How long do I have to exchange after reserving a new build?

The reservation agreement is usually valid for 42 days — a 14-day cooling-off period followed by 28 days to exchange contracts. If you can't exchange by the deadline (or any extension), the developer can end the reservation and re-sell the plot; under the new-homes codes it can keep only the deductions your reservation agreement sets out, not the whole fee. Most developers grant one short extension of 7-14 days, sometimes for a fee.

What happens if my mortgage offer expires before a new build completes?

Most mortgage offers last 6 months (some specialist lenders 3-4 months), but off-plan completions can take longer. Many lenders give new-build offers of 9 months, or will extend a 6-month new-build offer to about 12 months, usually after a fresh credit check and sometimes a revaluation. If your offer expires without an extension, you'll need to reapply, possibly at a different rate, so check the new-build offer period and extension terms before choosing a lender.

Can I negotiate the price of a new build?

Rarely. Developers prefer offering incentives — paid stamp duty, deposit contributions, upgraded specifications, or white goods — rather than reducing the headline price, since sale prices affect how future plots are valued. Your best negotiating leverage is at the end of a financial quarter or the end of a sales phase.

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Related Guides

• New Build Incentive Negotiation →
• New Build Snagging →
• Buying a Home: Complete Journey →
• Decision in Principle Explained →
• The Mortgage Application Process →
• How Deposit Size Affects Borrowing →
• First Time Buyer Mortgage Affordability →