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.
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Instant Value Drop for New Builds
- New-build homes often lose 15-16% value the moment you walk through the door.
- Short-term buyers face challenges recovering that depreciation plus transaction fees.
Mitigate New Build Premium
- If buying new build, plan to stay for at least five years to overcome initial value drop.
- Negotiate extras like paid stamp duty or upgrades to offset the new build premium.
Hidden Rising Costs in New Builds
- New-build leasehold properties have poorly predicted service and estate charges.
- These charges can escalate with no cap and reduce home affordability and value.