Merryn Talks Money
Is It Really a Good Idea to Buy New in the UK?
Apr 22, 2025
Paula Higgins, founder and CEO of HomeOwners Alliance and former leader of a government review into building control, joins the discussion to assess the pros and cons of new-build homes in the UK. She reveals the surprising challenges of substandard constructions and hidden costs that can catch buyers off guard. The conversation dives into the differences between leasehold and commonhold properties, stressing the critical need for transparency and thorough research. Ultimately, Paula emphasizes the importance of weighing new builds against older homes.
20:57
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Quick takeaways
- New build properties can depreciate significantly after purchase, making it crucial for buyers to consider long-term financial implications.
- Older homes typically offer established community dynamics and greater potential for renovations, presenting advantages over new builds.
Deep dives
Understanding New Build Homes and Their Risks
New build homes often appear appealing to buyers, but they come with numerous risks that potential homeowners should consider. It's noted that new builds can depreciate in value immediately after purchase, with estimates suggesting a decrease of around 15-16%. Moreover, buyers frequently encounter unexpected issues, such as inadequate construction practices leading to structural problems. Homeowners are advised to stay in a new build for at least five years to offset the initial depreciation and ensure they are not left with a financial burden.
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