What is the difference between buying a new build and a resale property in London?

New builds typically carry a premium over resale properties, involve reservation fees, exchange before completion (often many months in advance), and come with structural warranties such as NHBC cover. You'll deal with a developer rather than an individual seller, and the contract includes specific clauses around completion dates, specifications and snagging. Resale properties exchange and complete closer together, involve surveyors' reports rather than warranties, and pricing reflects the existing condition rather than new specifications.

How much deposit do I need for a new home in London?

Lenders typically require a minimum five to ten per cent deposit for new builds, though larger deposits secure better rates. Help to Buy equity loans (where available) reduce the mortgage and deposit required by lending a percentage of the purchase price interest-free initially. Always confirm deposit requirements with your broker early, as some lenders apply higher thresholds to off-plan or high-rise developments they consider higher risk.

Can I pull out after paying a reservation fee?

Reservation fees are often non-refundable if you withdraw, though some developers offer a cooling-off period (typically a few days). Once you exchange contracts, you are legally bound: withdrawing means forfeiting your deposit and potentially facing a claim for the developer's losses if they resell at a lower price. Always read the reservation agreement carefully and only proceed when your finances and commitment are certain.

What happens if the developer does not complete on time?

The contract specifies a long-stop completion date. If the developer fails to meet it, you may be entitled to compensation, extension of rate guarantees or, in extreme cases, the right to withdraw and reclaim your deposit. Your solicitor should negotiate robust remedies at exchange. Delays are relatively common, so avoid committing to onward purchases or rental notice periods tied to the developer's estimated completion date.

Are new builds in London a good investment?

New homes offer advantages—warranties, energy efficiency, lower maintenance—but carry a premium that can suppress short-term capital growth. Long-term value depends on location, transport links, build quality and local amenities maturing as promised. They suit buyers prioritising modern living and reduced immediate repair costs over maximum short-term appreciation. Always compare asking prices against resale stock nearby using HM Land Registry data, and consider holding periods of at least five years.

What should I check during a snagging inspection?

Test all switches, sockets, taps and appliances; check paintwork, grouting, seals and finishes for defects; verify flooring, doors and windows operate smoothly; inspect kitchens and bathrooms for alignment and leaks; and ensure specifications match the contract. Photograph or list every issue in writing and provide it to the developer before or at completion. Developers must remedy defects, and a thorough snagging list ensures issues are resolved quickly and at no cost to you.

Guides

Buying a New Home in London: New Build Guide

By Seymont London · 11 February 2026

A London interior photographed for Seymont London

Buying new homes London offers distinct advantages: modern specifications, energy efficiency, developer incentives and often fewer immediate maintenance concerns. However, new builds and off-plan London purchases follow different rules to traditional resales—from reservation fees and staged payments to completion timelines that can stretch months or years. Our team has guided hundreds of buyers through every phase of the new-build process across the capital, and this guide explains exactly what to expect, which questions to ask and how to protect your investment when purchasing a brand-new property in London.

Understanding the New Build Market in London

London's new home landscape ranges from single infill houses in established suburbs to vast riverside regeneration schemes with hundreds of flats. Developers typically release properties in phases, adjusting pricing according to demand, and the best units often sell before marketing launches publicly. Location determines much of the value proposition: excellent transport links, schools and amenities command premiums, while emerging areas may offer better square-footage but carry regeneration risk.

New builds in the capital carry a premium over equivalent resale stock—often ten to twenty per cent—reflecting warranties, contemporary specification and the absence of a chain. That premium can narrow or widen depending on market conditions, so comparing asking prices against recent sales of older properties nearby provides essential context. Use resources like HM Land Registry's Price Paid Data to benchmark accurately.

Off-plan London purchases—buying before construction completes—introduce both opportunity and risk. You secure today's price for tomorrow's delivery, potentially benefiting from capital appreciation during the build period, but you also commit to a purchase often eighteen months or more in advance without seeing the finished article. Market downturns, construction delays and specification changes all require careful contractual protection.

We work with buyers at every stage, from initial phase launches to final release units, helping you weigh incentives, assess build quality and negotiate terms that protect your position throughout the purchase journey.

Step One: Researching Developments and Reserving Your Property

Begin by identifying developments that match your budget, location requirements and timeline. Attend show-flat viewings with a critical eye: display apartments are dressed to impress, so measure rooms, check ceiling heights, assess natural light at different times of day and scrutinise specifications for materials, appliances and finishes. Ask for floor plans with precise dimensions and confirm whether parking, storage and outdoor space are included or cost extra.

Once you've chosen a unit, the developer will ask for a reservation fee—typically £500 to £5,000—to take the property off the market while contracts are prepared. This fee is usually deducted from your deposit but may be non-refundable if you withdraw, so read the reservation agreement carefully and confirm any cooling-off period. Developers often impose tight exchange deadlines—commonly twenty-eight days—so arrange your mortgage in principle and instruct a solicitor immediately.

Incentives are common: part-exchange of your existing home, contribution towards Stamp Duty Land Tax, upgraded specifications or Help to Buy equity loans. Evaluate each carefully; a cash contribution may offer more flexibility than a fixed upgrade, and part-exchange valuations are sometimes below market rate. Our team can introduce you to developments across London and help you assess which incentives deliver genuine value rather than marketing gloss.

Always visit the site itself, not just the show flat. Check access, construction progress if building has started, neighbouring developments and local amenities. New-build neighbourhoods can feel incomplete for years, so research planned infrastructure, school capacity and transport improvements that may or may not materialise on the promised schedule.

Step Two: Securing Finance and Understanding Help to Buy

Mortgage lenders apply stricter criteria to new builds, particularly off-plan purchases. They value the property at exchange and again at completion, and any shortfall between purchase price and valuation must be covered by you. Lenders also consider the developer's financial stability and construction track record, occasionally declining to lend on schemes they view as risky. Engage a mortgage broker experienced in new builds early—ideally before reserving—to confirm both availability and rates.

Help to Buy equity loans (where still applicable under legacy schemes) allow the government to lend up to twenty per cent of the purchase price (forty per cent in London under previous iterations), reducing your deposit and mortgage requirement. The loan is interest-free for the first five years, after which interest accrues. Crucially, the loan is linked to the property's value: when you sell or remortgage, you repay the same percentage of the market value, not a fixed sum. This means you benefit from—or are exposed to—house-price movements proportionally.

New schemes and eligibility criteria change, so check gov.uk for the latest position on government-backed purchase support. Some developers offer their own in-house equity or deposit-matching schemes; scrutinise terms, interest rates and redemption penalties with your solicitor before committing.

Budget for Stamp Duty Land Tax using the latest residential thresholds published by HMRC. First-time buyers enjoy relief on purchases up to £625,000 (rates and thresholds correct at time of writing; confirm current bandings at gov.uk or use our [Stamp Duty Calculator](/tools/stamp-duty-calculator)). Remember that SDLT is payable on exchange for off-plan contracts where completion is more than a year away, creating a cashflow consideration.

Step Three: Contract Exchange and Managing the Build Period

Your solicitor will review the contract, which differs materially from a standard resale. Key clauses include the long-stop completion date (the developer's deadline to finish), specifications, snagging procedures, and your remedies if the developer fails to complete on time. You should also receive a ten-year structural warranty from the National House Building Council (NHBC) or equivalent provider; confirm the warranty provider is reputable and understand what is and is not covered.

Exchange typically occurs months before completion. For off-plan London purchases, you may exchange when the building is barely out of the ground. Once contracts are exchanged, you are legally committed: pulling out means forfeiting your deposit and potentially facing a claim for the developer's losses if they resell at a lower price. Ensure your finances, circumstances and commitment are secure before exchanging.

During the build period, developers usually offer site visits at agreed milestones. Attend these to monitor progress, verify specifications and raise concerns early. Variations—changes you request to layouts, finishes or fittings—often carry significant cost and strict deadlines, so decide quickly. Some buyers find that premium upgrades add less value at resale than their purchase cost, so prioritise structural or specification changes over cosmetic ones.

Maintain contact with your solicitor and lender as completion approaches. Lenders will revalue the property shortly before completion; any downvaluation can derail the purchase unless you can fund the gap. Keep your deposit funds accessible and confirm completion dates in writing well in advance to coordinate removals, utility connections and final mortgage drawdown.

Step Four: Completion, Snagging and Moving In

Completion is the day legal title transfers and you collect keys. For new builds, developers often schedule a pre-completion inspection—your opportunity to walk through with a checklist, identifying defects or incomplete work (known as "snagging"). Bring a tablet or camera, test every switch and tap, check grouting, seals, paintwork and appliances, and list every issue in writing. Developers are obliged to remedy defects, but pursuing them after you've moved in is more cumbersome than agreeing a snagging list beforehand.

Your solicitor will confirm the completion statement, including the final balance due, apportioned service charges and any retention (money held back until snagging is resolved). On completion day, funds transfer, the developer's solicitor confirms receipt, and keys are released. Arrange buildings insurance from completion—your mortgage lender will insist on it—and notify your local authority for Council Tax.

Many new-build estates have management companies responsible for communal areas, landscaping and facilities. Understand your annual service charge, the management company's reputation and whether a sinking fund exists for major works. Ground rent (where applicable on leasehold properties) should be reasonable—historically, doubling ground rents have caused significant resale difficulties, so ensure your lease terms are mortgageable and fair.

Settling in to a new home means registering appliances under warranty, activating NHBC cover and keeping all paperwork safe. Developers remain liable for defects within the first two years under NHBC rules (check your specific warranty terms), so report problems promptly. The local area may take time to mature, particularly if infrastructure or amenities are still under construction; patience and community engagement help build the neighbourhood you were promised.

Resale Considerations and Long-Term Value

New-build premiums can affect resale values in the short term. Properties purchased off-plan sometimes struggle to achieve significant appreciation within the first five years because the premium you paid over equivalent resale stock takes time to erode. Location, specification and market conditions all influence this, but it's wise to view a new home as a medium- to long-term investment rather than a quick gain.

Leasehold new builds—common for flats—require particular attention. Ensure the lease has at least 125 years remaining at purchase, ideally more. Short leases become unmortgageable and expensive to extend, directly impacting resale values. Review service charges annually and budget for increases; poorly managed estates can see charges spiral, deterring future buyers.

When you decide to sell, highlight the property's age, warranty status, energy efficiency and specification. Younger properties often achieve Energy Performance Certificate (EPC) ratings of A or B, a growing selling point as buyers prioritise running costs and environmental impact. Keep all guarantees, manuals and snagging records to pass to your buyer, evidencing diligent maintenance.

Our [Buy](/buy) service supports new-home purchasers from search through to resale strategy, and our knowledge of London's development pipeline means we can advise on emerging areas, upcoming transport links and regeneration schemes that shape long-term value. Whether you're a first-time buyer or an experienced investor, understanding the new-build process protects your capital and ensures your purchase meets both immediate needs and future ambitions.

Frequently asked

What is the difference between buying a new build and a resale property in London?: New builds typically carry a premium over resale properties, involve reservation fees, exchange before completion (often many months in advance), and come with structural warranties such as NHBC cover. You'll deal with a developer rather than an individual seller, and the contract includes specific clauses around completion dates, specifications and snagging. Resale properties exchange and complete closer together, involve surveyors' reports rather than warranties, and pricing reflects the existing condition rather than new specifications.
How much deposit do I need for a new home in London?: Lenders typically require a minimum five to ten per cent deposit for new builds, though larger deposits secure better rates. Help to Buy equity loans (where available) reduce the mortgage and deposit required by lending a percentage of the purchase price interest-free initially. Always confirm deposit requirements with your broker early, as some lenders apply higher thresholds to off-plan or high-rise developments they consider higher risk.
Can I pull out after paying a reservation fee?: Reservation fees are often non-refundable if you withdraw, though some developers offer a cooling-off period (typically a few days). Once you exchange contracts, you are legally bound: withdrawing means forfeiting your deposit and potentially facing a claim for the developer's losses if they resell at a lower price. Always read the reservation agreement carefully and only proceed when your finances and commitment are certain.
What happens if the developer does not complete on time?: The contract specifies a long-stop completion date. If the developer fails to meet it, you may be entitled to compensation, extension of rate guarantees or, in extreme cases, the right to withdraw and reclaim your deposit. Your solicitor should negotiate robust remedies at exchange. Delays are relatively common, so avoid committing to onward purchases or rental notice periods tied to the developer's estimated completion date.
Are new builds in London a good investment?: New homes offer advantages—warranties, energy efficiency, lower maintenance—but carry a premium that can suppress short-term capital growth. Long-term value depends on location, transport links, build quality and local amenities maturing as promised. They suit buyers prioritising modern living and reduced immediate repair costs over maximum short-term appreciation. Always compare asking prices against resale stock nearby using HM Land Registry data, and consider holding periods of at least five years.
What should I check during a snagging inspection?: Test all switches, sockets, taps and appliances; check paintwork, grouting, seals and finishes for defects; verify flooring, doors and windows operate smoothly; inspect kitchens and bathrooms for alignment and leaks; and ensure specifications match the contract. Photograph or list every issue in writing and provide it to the developer before or at completion. Developers must remedy defects, and a thorough snagging list ensures issues are resolved quickly and at no cost to you.