New Developments in London
There are many people who strive to live in London, allured by its numerous amenities, attractions, and job opportunities. Home to the country’s main business centres, the city bustles with activity and lively tourist crowds. Moreover, as a great transport hub, London allows even the dwellers of outer boroughs to travel around the city and beyond. Therefore, even if you live in a quiet corner away from the city centre, you’ll still be able to commute to work.
Why buy a new build?
When it comes to buying property, a lot of people choose new builds as they are more adjustable: you can either pick one of the options, suggested by a property developer or renovate your home since newly-built real estate provides a better foundation for renovation works. Further perks include the latest technologies, energy efficiency, and warranties.
- Ready to move in. There is no need to wait for a previous homeowner to pack everything and move out. Therefore, once you buy a new property, you can just move in.
- Minimal maintenance. Since all systems and appliances are new, you probably won’t need any major repairs done in the first couple of years. Also, new developments usually come with a 10-year NHBC warranty or similar insurance.
- Modern equipment. New builds are usually equipped with the latest technologies, providing a more comfortable living. Some of the most popular features include state-of-the-art kitchen appliances, modern heating and cooling systems, as well as a Smart Home system.
- Buyers’ preferences. Most property developers provide homebuyers with a list of available finishes and interior options. Thus, letting them customise their future home.
- Low energy bills. New developments come with energy-efficient features, allowing you to cut your expenses and save some money. New builds are equipped with improved insulation and double glazing, among other perks.
Ways to buy London new developments
Another perk of new build developments is a wide range of payment options, which includes government-backed schemes that are meant to help first-time buyers purchase their first home. In London, you can acquire a home using one of the following options: a mortgage, Help to Buy, Shared Ownership, Part Exchange, or Investment Purchase.
- Mortgage. If you’re considering getting a mortgage, you need to keep in mind that some lenders put restrictions on the maximum amount they’ll lend for those who are buying a new build property.
- Help to Buy. Help to Buy is a government-backed scheme that helps first-time buyers get a home by providing an equity loan on quite favourable terms. Via this buying scheme, you can only buy a new build property.
- Shared Ownership. For those who cannot afford all of the deposit and mortgage payments, there is the Shared Ownership scheme, which allows buyers to buy only a share of a property and pay rent to the landlord on the remaining share. Initially, you can purchase between 10% and 75% of the property’s value, but later on you can buy bigger shares or even get full ownership.
- Investment Purchase. London is a popular location for real estate investors as it has great rental yields, capital growth, and high demand. Also, if you’re considering making an investment purchase, you might want to research off-plan properties as developers usually offer them at a much lower price.
- Part Exchange. A Part Exchange scheme lets you use your current property as part payment for a new build one. Such a method helps people sell their properties faster in order to buy new real estate. In this scenario, the property developer acts as an estate agent.
Top 5 best areas in London to buy a new build
When looking for a place to buy a new build, there is a wide range of factors that have to be taken into account, such as a history of price growth, regeneration potential, transport system, and local amenities. Bearing in mind all that, we’ve compiled the top 5 best areas to buy new property in London, which includes Westminster, City of London, Islington, Kensington and Chelsea, and Hammersmith and Fulham.
- Westminster. Located in central London, the Westminster borough is home to many of the world-famous attractions in London, such as Buckingham Palace, Westminster Cathedral, and a large part of the West End shopping and entertainment area. Real estate here consists mainly of residential apartments and large private homes, aimed at wealthy residents.
- City of London. Although officially not one of the 33 London boroughs, the City of London is the oldest district in the city, with a history dating back to the times of the ancient Romans. The area serves mainly as a business center with less than 10.000 residents but with more than 500.000 people working there.
- Islington. This residential district in the central part of Inner London is home to roughly 215.000 residents. Some of the landmarks in this area include the Emirates Stadium, where football club Arsenal plays its matches, the London Canal Museum, and a wide range of theatres. Islington boasts an abundance of public transport options, making it the ideal place for those that have to commute.
- Kensington and Chelsea. With a royal status, this is the smallest borough in London. However, it is also one of the most densely populated areas in the capital. As a result, this area is home to some of the most affluent neighborhoods in London, including Chelsea, Knightsbridge, and Notting Hill.
- Hammersmith and Fulham. Part of the top 5 of most expensive residential areas in London, this borough also houses the offices of several multinationals, such as Sony Mobile Communications, All Nippon Airways, Coca Cola, Disney, and the Virgin group.
How do I find a new build in London?
To find a new build in London, you can use Korter, a real estate website that lets you search through all new builds for sale in London in order to find the right one. The property search has a collection of convenient filters for narrowing down your search results based on your preferences as well as an interactive map in case you’d like to see exactly where certain developments are located. Once a property catches your attention, you can open its description and see detailed information about its location, amenities, facilities, architecture, surrounding infrastructure, transport accessibility, and the developer’s profile. Apart from the project itself, the website provides details on the available units, including layouts and photos. To find the right time for your purchase, we suggest analysing the price dynamics displayed on the website to see how the price has changed and seize the best moment.
- What do new builds come with?
The standard specifications include double or triple glazing, heat insulation, and high-quality roofing, as well as wooden flooring or carpet, a number of integrated appliances, and bathrooms.
- Are all new builds leasehold?
New flats are usually sold on a leasehold basis. As for new build houses, the government is working on measures to ensure that they will only be sold as freehold.
- Are new builds good for first-time buyers?
Many first-time buyers choose a new build as it might be the only option they can afford owing to the fact that only new builds can be bought via government schemes, such as Help to Buy and Shared Ownership.
- How much deposit does a first-time buyer need for a new build?
To buy a newly-built property, a first-time buyer will need to put down at least a 5% deposit.
- Can you negotiate on a new build?
Many people are convinced that you can only negotiate with a seller of an older house. However, that’s not true! You can make an offer to a new build property developer the same way you would if you were buying a resale home.
- How long does it take to buy a new build?
Usually, it takes around 7 weeks from the moment an offer is accepted to the exchange of contracts. However, it may take two more weeks or so until completion, but since new builds are chain-free, this process might be much easier.
- What are the most popular amenities in new developments?
New developments tend to have much more amenities than older ones. The list of the most common options is topped by a concierge, followed by on-site retail facilities, underground parking, a gym with a swimming pool, and a laundry facility.
- Is buying a new build a good investment?
Buying a new build property can be considered a good investment since new builds tend to grow in value at the same rate as other properties.
- What should I ask when buying a new build?
- What other developments has the developer built?
- What exactly is included in the price?
- What does the new home warranty cover?
- Is it a freehold and leasehold property?
- How many properties have already been sold?
- Are there any schemes or discounts that can help me buy a property?
- What’s the completion date for the property?
- Are there any restrictions?
- Which company will be responsible for the energy supply?
- Are there any extension plans?
- What management company will be serving the building?