One of the most common questions I get asked is: "Is it actually safe to buy a new build or off-plan property?"
It's a fair question—and an important one—especially with the market heading this way and with so many shiny marketing brochures and show homes making the process look easier than it often is.
Having spent over a decade advising on new build and off-plan purchases—acting for major developers in London, Birmingham and Manchester, as well as UK and overseas buyers—I've had this conversation more times than I can count. And while every deal is different, there are a few key points I always come back to:
The risks are similar to buying an existing home. In both cases, you're committing before knowing everything. With a new build, the main difference is that you're buying something that hasn't been completed yet—it's not tangible, which understandably makes people a bit nervous.
You need to be comfortable with the journey. Buying off-plan is often a long process, and there will be ups and downs along the way. Confidence in what you're buying—and who you're buying it from—is essential.
Do your homework on the developer. Not all developers are equal. Try to visit some of their completed projects so you know what to expect in terms of a finished product.
Make sure your finances are in place. Some developments can take two to three years to finish. Your funding needs to line up with that timeline.
When a client sends me a marketing brochure, or I receive a sales bundle (the set of documents that forms the basis of the deal), there are a few key things I look out for straight away - these are there to protect you:
- Does the planning permission align with what is being promised?
- Is there a compliant 10-year buildings warranty in place?
- If the deposit is released to the developer, is it protected?
- Are there clear snagging provisions within the contract, and what is the developers' rectification process?
- Can the developer make changes to the floor plan? If so, what kind?
- Can the developer swap out fittings or finishes, and if so, will the replacements be of equal quality and value?
- What is the completion notice period?
- How long is the contract period, and what happens if things overrun?
These might sound like small details, but they can make a big difference, especially near completion - when expectations, emotions and stress levels are high.
This is why it's so important that your contract covers all of these areas clearly. It should also include a requirement that you're notified if anything significant changes along the way.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
