As the property market is seeing a record number of people on the house hunt, many are seeing the benefits that come with buying a new-build property.
August has been the busiest month for the UK property market in 10 years as more people are prioritising homebuying than summer holidays, according to Rightmove. With the temporary stamp duty holiday, the housing market has seen a boost with a record number of prospective homebuyers on the hunt for a new house.
As the stamp duty holiday has increased the tax threshold from £125,000 to £500,000 until 31 March 2021, some buyers may be able to purchase higher priced properties. Rightmove even saw a 22% increase in visitors to its portal within just minutes of the news breaking on 8 July that stamp duty was being cut for thousands of property purchases. That day was even the portal’s busiest day in history.
A rise in new-build enquiries
Interest in new-build properties are also hitting record highs. Rightmove saw a 35% rise in enquiries for new builds from the previous record. There was also an annual rise of a whopping 89%.
There has been a significant surge of interest in Help to Buy, which is a government scheme helping buyers purchase new builds, as more homebuyers have had the time to research a varied range of purchasing options.
Salboy, a property development company in Greater Manchester, has seen enquiries for their developments increase significantly as well, particularly in off-plan purchases. The Viadux, a 40-storey premier residential development in the heart of Manchester city centre, is predicted to see strong demand, especially for off-plan sales.
What does buying off-plan mean and how does it work?
Buying off-plan means a buyer is committing to buying a property before the property has been built. It can be before the building has even started or just before it’s finished. Buying off-plan can come with risks, so it’s important to buy from a reputable developer.
When buying off-plan, a buyer pays a reservation fee up front, which is typically deducted from the deposit. After the buyer’s solicitor has gone through the legal process, which is the same for buying any property, the deposit will then need to be paid and contracts exchanged. This is when the buyer is legally bound to purchasing the property. If the buyer backs out, they’ll lose their deposit.
When construction is coming towards the end, the mortgage should be arranged so it’s in place for time of completion. And once it’s completed, the developer then serves notice to complete and gives a certain amount of time to finalise the purchase and pay the rest of the purchase amount.
The benefits of buying new builds and buying off-plan
There are many benefits that come with buying a new-build property. Everything is brand new and the buyer will be the first person living in the house. New builds also come with a 10-year warranty, providing more peace of mind.
Additionally, new builds are typically significantly cheaper to run than most existing properties as these have been built to the latest environmental standards. Over 80% of new builds have an A or B energy performance rating, while only 2.2% of older homes do, according to the Home Builders Federation.
When buying off-plan, there are even more benefits. Developers often offer discounts to those who buy off-plan. And if property prices rise in the area while the building is being constructed, the market value of the property could rise by the time the build is finished, making it possible to earn capital appreciation before even moving into the house.
Off-plan purchases also often offer the buyer the ability to customise the property. If you purchase the property before or during the construction stage, you usually get to decide on the layouts, decor and appliances, providing the ability to make the property what they want before even stepping foot in it.
If you are interested in buying a new-build or off-plan property in Greater Manchester, check out the property developments Salboy has an offer.