Guide to buying a new build home

New build developments are springing up across Scotland. Whether you’re looking for a compact apartment near restaurants and shops, or a spacious family home surrounded by beautiful scenery, you're bound to find a new build home suited to your needs.

Buying a new build home differs from purchasing a previously owned property. New builds can offer plenty of benefits from purchasing incentives, to high energy efficiency and low maintenance costs. However, to decide whether a new build is right for you, it's important to learn about the buying process and consider the potential downsides too.

Our comprehensive guide walks you through everything you need to know before buying a new build, explaining the purchase process step by step as well as what you need to do once you’ve settled into your new home.

What is a new build property?

A property is considered a 'new build' if it has been built, converted, or substantially refurbished in the past two years and has never been sold.

Most new builds are constructed by a developer or housebuilder. They typically feature modern designs, energy-efficient technology, and should adhere to up-to-date building regulations.

New developments often give buyers the option to purchase a property off-plan, meaning you can secure it before construction is complete and usually customise the interior finishes. Alternatively, some new builds are ready for immediate sale, providing a new-feel living space without the wait.

Buying off-plan vs. completed builds

Off-plan: Buying off-plan typically involves paying a reservation fee, then following construction from initial groundwork to final finishes. You may secure a lower price or developer incentives and have the chance to select certain design elements. However, completion dates can be uncertain, and delays are common.

Completed build: A newly constructed property in which every phase from foundation to interior details have been finalised, leaving no outstanding construction work and making it ready for immediate occupancy. Buying a completed build means you can see exactly what you’re getting before exchanging contracts and in most cases, you can move in sooner. There are however usually fewer options to customise the property’s layout or finishes.

Before buying a new build

Before you buy a new build, it’s important to consider the pros and cons, how to find a reputable developer, and other key points to consider before reserving a property.

Buying a new build property offers exciting possibilities, from personalising off-plan designs to taking advantage of modern energy efficiencies. However, it also comes with potential drawbacks such as delays or higher costs. Read on for a breakdown of the main pros and cons.

Benefits of buying a new build

• Blank canvas: Off-plan developments usually allow you the option to personalise various elements of your new home; from additional doorways to kitchen appliances and cosmetic finishes.
• Schemes and incentives: New builds often benefit from grants and incentives aimed at helping buyers secure mortgages with lower deposits or more flexible loan-to-value requirements. Flexible loan-to-value (LTV) requirements refer to situations where lenders are willing to offer mortgages that cover a larger percentage of the property's value — meaning you, as the buyer, need a smaller deposit than usual.
• Low maintenance: Newly constructed properties typically require less maintenance and come with structural warranties, this reduces the risk of costly repairs.
• High energy efficiency: Modern insulation and heating systems can help to keep monthly payments lower while reducing your environmental footprint.
• No buyers chain: Not relying on anyone else’s sale to proceed can speed up the buying process and make things less stressful.
• Community: Developments of new builds often attract individuals at similar life stages, fostering a close-knit environment and a strong sense of belonging.

Downsides to buying a new build

• Delays: It’s not unusual for new build completion dates to shift due to construction schedules or last-minute changes, which can add uncertainty to your moving plans.
• Build quality & snagging: While newly constructed properties are usually built to modern standards, you may encounter minor defects (known as snags) that need fixing. Though developers often resolve them under warranty, it can still be an inconvenience.
• Costs: A new build purchase can come with a premium price tag, meaning you could pay more than you would for a similarly sized pre-owned property in the same area. You also need to factor in the cost of finishes such as flooring and decor.
• Space: Many developers maximise the number of houses on the development, which can result in smaller room dimensions or limited outdoor space compared to older properties.
• Mortgage limitations: Some mortgage lenders are more cautious with brand new homes, sometimes requiring larger deposits or having stricter criteria, which can make it tougher to secure a loan on a new build.

Choosing a developer

Choosing the right developer is an essential first step toward your new build purchase. Researching a builder’s track record, construction standards, and approach to aftercare, will let you feel confident that your new build home will be completed to the highest standard and well-managed for the long term.

• Developer track record and reputation

  Selecting a reputable developer is often the key to a smooth new build purchase. Begin by examining their history and reading customer reviews, then look for completed projects that match your expectations for quality and timeliness. Speaking with existing homeowners or checking independent review sites will provide insight into whether the company meets deadlines, stays in communication, and offers good aftercare. A developer with a proven track record typically delivers high-quality builds and honours warranties or aftercare promises, giving you greater peace of mind about your new build home.

• Show home visits and site tours

  Show homes allow you to see typical finishes, room proportions, and the overall feel of a new build. Remember that these might feature upgrades that aren’t included in the basic price. Attending site tours lets you get a feel for the local area and local amenities. You should use a site tour to assess roads, communal areas, and how the development is managed. Also consider potential noise or disruption if construction is ongoing for future phases.

• Warranty coverage

  Most reputable developers provide a structural warranty under schemes such as the NHBC (National House Building Council). These typically cover major structural defects for a set period, often 10 years, and give you legal recourse if serious issues arise. Some warranties also include a shorter initial period, usually the first two years, during which the developer is responsible for any defects. Ensure you understand what’s covered, how to file claims, and the time limits for each part of the warranty.

Choosing the right property

Selecting the right property is about balancing practicality and lifestyle. From estimated build times to amenities and site restrictions, understanding these details will ensure your new build purchase aligns with your goals.

Timeline for completion
Completion timelines vary, but many developers target anywhere from six months to two years, depending on the size of the development and factors such as weather or planning approvals.

Be aware that many developments are completed in stages, meaning that while your house may be finished, you could be living on a building site for several months, or even years in some cases. If you're buying off-plan, be sure to ask the developer for a clear timescale for both the completion of your property and the wider development.

Staying in regular contact with the developer can help you stay informed of any delays and plan accordingly, especially important if you need to coordinate a move or arrange bridging finances.

Location

• Consider the property’s distance to local amenities such as shops, restaurants, and schools. If you rely on public transport or prefer to cycle, look into nearby transport links or cycle paths.
• Assess any proposed extensions to the area’s infrastructure, which may add value to the property over time. Keep in mind any upcoming developments, as these can impact the desirability of the location. Areas that benefit from green space, or beautiful scenery can also be particularly appealing.

Site restrictions

• Are there any restrictive covenants, planning permissions, or building regulations that might impact you? Ask your solicitor or the developer about the planning history for the site, future expansion plans, and any conditions that might affect the property.
• Restrictive covenants are intended to uphold standards for residents on developments but could, for instance, include restrictions on the type of pets kept, extensions to your property, or restrictions for trades or businesses operating on the land.
• Ensuring all permissions are in place and you're aware of covenants gives you peace of mind and avoids potential legal issues down the line.

Freehold vs. leasehold

All new build properties in the UK are sold as freehold. This has been the case since 2019, when a change to UK government legislation was made to prevent developers from exploiting homebuyers through fees such as ground rents.
However, even freehold new builds can come with service charges, particularly if the development includes shared facilities such as private roads or communal gardens. Ensure you’re fully aware of any ongoing charges or responsibilities tied to the property, as these can affect your overall financial commitment.

Budgeting and financing

Budgeting for a new build can be more involved than a standard property purchase, with extra costs, unique deposit requirements, and potential incentives to explore.

In this section, we’ll look at what you need to budget for, how to make the most of developer and government support, and the key mortgage considerations when buying a newly built home.

Additional costs

When calculating your budget, remember that you will need to make sure you have funds available at various stages of the purchase process, and that buying a new build will include extras on top of the property purchase price. Ask for a clear breakdown of costs from the developer or estate agent. By factoring in these expenses early, you can budget accurately and prevent any last-minute financial surprises.

• Reservation fees and deposit.

  Most developers charge a reservation fee to secure the property. This might range from a few hundred, to a few thousand pounds. At the contract exchange stage, you will also need to put down a deposit, usually 5–10% of the property’s value.

  You may wish to prioritise which extras are necessary before you move in and plan to finish others later.

• Extras

  New build homes are usually sold as a blank canvas, so you will need to account for optional extras and upgrades. Whether you're opting for developer offered packages, outsourcing or doing it yourself, you will still need to factor in the cost of extras such as kitchen appliances, flooring packages, or landscaping.

  You may wish to prioritise which extras are necessary before you move in and plan to finish others later.

• Site service charges

Even freehold new builds can come with service charges, particularly if the development includes shared facilities such as private roads or communal gardens. Ensure you’re fully aware of any ongoing charges or responsibilities tied to the property, as these can affect your overall financial commitment.

Schemes and incentives

• Developer offers and incentives

  Developers often offer a range of incentives designed to make the process more affordable and straightforward. These can include deposit contributions, where the developer covers a portion of your down payment, or mortgage subsidies, easing your monthly payments in the early stages. Some companies offer part exchange schemes, allowing you to trade in your existing property for a set value and avoid the hassle of a traditional sale.

  Additionally, upgraded fixtures, extended warranties, or even covering certain legal fees are common perks offered.

• Government support

  The Scottish Government offers a range of schemes to support home buyers purchasing a property including shared ownership, shared equity schemes, reduced deposits or special lending rates.

  At the time of writing, if you are a first-time buyer or in a priority access group, you could benefit from the New Supply Shared Equity (NSSE) scheme. The NSSE allows you to buy a new build property typically paying 60-80% of the cost, while the Scottish Government fund the rest of the cost and hold the remaining share.

  It's worth checking out the mygov.scot website to see what help is available. In the past the Scottish Government has offered schemes such as the Help to Buy (Scotland) New Build scheme, aimed at encouraging new build home ownership and stimulating the property market.

Mortgage options for new builds

New build mortgages can come with unique conditions, such as higher deposit requirements. Loan-to-value (LTV) ratios may differ from standard mortgages, particularly if you are buying off-plan. Carefully compare mortgage lenders, as some may offer specialist deals or lower interest rates for newly constructed properties. Be prepared for a slightly more rigorous lending process if you’re purchasing a property that isn’t fully constructed at the time of application.

Some buyers also consider bridging loans or short-term financing if their existing property sale hasn’t completed yet.

Engage a solicitor

It's important to instruct a conveyancing solicitor from the early stages of your purchase. A solicitor will identify red flags in the contract, such as service charges, building restrictions, or clauses that could affect your ownership rights. They’ll ensure you’re fully aware of your obligations and can negotiate amendments with the developer if necessary. Having a legal professional who is experienced in new build transactions can help avoid future disputes or misunderstandings.

While buying a new build

Once you've done your research and found the right new build home, it's time to instruct a conveyancing solicitor and start your property purchase.

Below, we explain what to expect and how to address some common challenges that may arise. By staying organised and proactive, you’ll be well-positioned to finalise your purchase and look forward to life in your new build home.

1. Reserve your property

A reservation agreement secures your chosen property, taking it off the market and guaranteeing that the price won’t change. The reservation is typically deducted from the purchase cost once the sale has gone through. However, it’s crucial to read the terms carefully. If you can’t complete the sale within the agreed period, you risk losing part, or all, of your reservation fee.

2. Finances and legal work

After reserving the property, you generally have a set period, often 28 days, to conclude missives. During this time, you’ll need to finalise your mortgage application, instruct surveys if required, and have your solicitor review all documents.

Steps to take:

• Apply for a mortgage: Ensure the mortgage you apply for is suitable for new build homes.
• Engage your conveyancing solicitor: They will carry out legal checks on the property and the development.

3. Concluding missives (exchanging contracts)

In Scotland, the exchanging of contracts is referred to as "concluding missives” and makes the purchase legally binding. Typical timelines for concluding missives exchange and deposit payment vary but should be outlined in the reservation paperwork.

The sales contract outlines everything from the purchase price and completion date to which fixtures and fittings are included. For instance, some developers might include white goods, while others provide a more basic package. Your solicitor will review the contract and negotiate on your behalf if any terms appear unfavourable or unclear.

Once the contract is exchanged, you pay the deposit. Make sure you understand the financial commitments and any penalties if the purchase falls through after this stage. Be aware that you may need to be flexible if the build experiences unexpected delays.

4. Monitor the build process

Keep in contact with your developer to make sure the build stays on track. Delays to the build can be caused by factors from weather conditions to supply chain issues. Preparing a contingency plan in case of delay is especially important if your current living situation or mortgage offer is time sensitive.

5. Final inspection of the property

Shortly before completion, arrange a final inspection or “walk-through” to look for any snagging issues. Check for functionality in essentials such as plumbing, heating, and electrics. This is also your chance to confirm that all agreed extras are installed. Document any concerns so the developer can address them promptly.

6. Finalise the purchase

At this point your solicitor will coordinate with the developer and mortgage lender to gather all final paperwork and release the remainder of funds. They will also ensure the Title Deed is valid, ownership is correctly transferred, and handle the payment of Land and Buildings Transaction Tax (LBTT).

Once these steps are complete, you’ll officially own your new build property and can look forward to moving in.

7. Moving in

It’s time to pick up your keys and finalise any remaining details with the developer.

A well-prepared checklist will help keep you organised. Consider essentials such as scheduling a professional snagging inspection, redirecting mail, and organising moving-day help. Not sure where to begin? We’ve outlined the key steps below.

After buying a new build

Surveys and snagging checks

A standard property survey checks for major structural problems, while a snagging inspection identifies smaller faults or unfinished work such as paint issues or poorly fitted doors. Developers typically fix these as part of their aftercare, but it’s up to you to point them out promptly.

Ideally, schedule a snagging inspection once construction is complete but before moving in.

Utilities, council tax, and broadband

Before you move, check if your new build’s postcode is listed in the Royal Mail database - some addresses aren’t added right away. If yours doesn’t appear, contact Royal Mail to request an update. They can only add addresses that are eligible for mail delivery.

Arrange utilities (electricity, gas, and water) well in advance so everything’s up and running on moving day. For broadband or phone lines, confirm availability in your area; many new developments are already equipped with high-speed connections. Don’t forget to notify your local council to set up council tax payments and update your details with banks, employers, and other important contacts.

Home insurance and warranties

Most new builds come with a 10-year structural warranty that typically covers major issues such as leaks in the roof, windows, or doors, for at least the first two years. Some warranties also cover fixtures and fittings for a shorter time, so make sure you read the policy details carefully to understand exactly what’s included.

Even with this coverage in place, buildings insurance remains essential and is usually required by mortgage lenders before contracts are exchanged.

One advantage of a new build is that buildings insurance can often be cheaper than for an older property. Modern design features, along with brand-new electrics, plumbing, and security measures, generally reduce the likelihood of claims, helping to reduce premiums.

Filing claims and resolving disputes

If a major defect arises, your first step is to contact the developer. Minor issues are often resolved promptly by their customer care team. If the developer doesn’t address the problem, you can escalate it through the warranty provider. Keeping detailed records of all communication can help ensure quick and efficient resolution of any disputes.

Conclusion

Buying a newly built property can be an exciting journey, offering the chance to move into a modern, energy-efficient home with the latest fixtures and finishes. While potential delays, snagging issues, and higher initial costs can add some complexity, careful planning and professional support can help you navigate these challenges with confidence.

If you have any questions regarding property exchange or conveyancing matters, please reach out to our Edinburgh team today.