Buying a New Build Home in Central London: The Complete Guide

Buying a new build home in walk-in condition in prime central London is a tempting prospect, whether you are a first-time buyer, looking for a family home or planning to downsize.

Consider West Hampstead Central’s baked-in community feel, Park Modern’s Hyde Park views, the exclusivity of Chelsea Barracks, and the luxury investment prospects of £2 billion development 1 Mayfair. There are many benefits of buying a new build, but there can be potential downsides too.

Read our guide to buying a new build home near locations like Regents Park, Fitzrovia, Hampstead, Bayswater or Kensington to find out more about the process.

What Is A New-Build Property?

A new build property is one that is newly built and has never been lived in. If you are buying a property where work hasn’t started on the development, or the property is in the process of being built, this is called buying ‘off plan’.

Why Buy A New-Build Property?

There are many advantages to buying a newly built property, rather than an older one.

• Repairs and maintenance costs should be minimal for the first few years.
• Energy bills should be cheaper because the property will be better insulated.
• New properties often come with guarantees. If the property is registered with the National House Building Council (NHBC), it will come with a 10-year warranty.
• Buyers can often select the fixtures and fittings.
• If you need financial help, the government has several schemes that can help you purchase a new-build.

Want to find out more? Discover what buyers and renters want and find out whether you need a home buyer’s survey.

How Long Does It Take To Buy A New Build Home?

The buying a new build home timeline can be different from buying a resale property on the open market. It can be a significantly quicker process, which is one of the advantages.

1. Visit a development and reserve a new home: you can often reserve a new home on the day you visit, providing you meet the developer’s criteria. They may want to see photo ID, a proof of deposit, a mortgage agreement in principle and proof of funds if you’re a cash buyer. You’ll need to instruct a conveyancer immediately, telling them you’re buying a new build home and tell them any exchange deadline (see step 3).
2. Progress your mortgage application: with your plot chosen, you should progress your mortgage application. This can take between 2 and 4 weeks.
3. Conveyancing process: buying a new build home comes with a deadline. You’re often required to exchange contracts within 28 days of paying your reservation fee. This is something often referred to as the ’28-day sprint’. All your conveyancing must be completed within this 4-week window.
4. Exchange contracts: this can be an instant process as long as all parties have signed the paperwork. Exchange should be straightforward as the new home is the end of the chain.
5. The construction phase: if you are buying a new build home off plan, you’ll have to wait for the property to be built before you can complete. This could take days, weeks or months, depending on the weather, labour and material availability. Ask your housebuilders for its expected delivery date.
6. Completion: if your new home is already built, you can expect to wait between 1 and 2 weeks between exchange and completion. If you are buying off plan, you’ll need to wait for the home to be ready before you can complete.

The Process Of Buying A New Build Home

1. Check Your Finances

Talk to a financial advisor or your bank to establish how much you can borrow. This will help you understand how much you can afford to spend before looking at properties. The mortgage process can be more challenging as lenders may offer lower loan-to-value ratios on new builds.

Most mortgage offers are valid for six months – check your home’s build schedule as it may outrun six months and your offer may expire. One of the hidden costs of buying a new build home is the incentives offered. Some lenders may reduce the amount they are willing to lend you if you take up a housebuilder’s offer of a deposit paid or cash back deal.

Make sure you set aside money for the buying process itself, such as paying solicitors fees and stamp duty.

2. Find A New-Build Home

The next step is to find a development you like. Research the local area to ensure it has all the amenities you require as well as the developer’s track record for delivering high-quality properties on time.

Confirm that the builder is a member of the National House Building Council (NHBC) and the Home Builders Federation (HBF). The NHBC requires its members to build to a high standard. You will also receive a ten-year guarantee and an insurance policy to cover any major problems regarding the new building.

Most new developments will have a show home to illustrate the quality and finish of their properties. Find out what is included in the price, for instance, built-in wardrobes, flooring and white goods. Be wary of add-on items; you may find it cheaper to source and pay for them yourself.

Many developers will hold an open day. These often come with incentives such as paid stamp duty, help with moving costs or part-funding of deposits.

3. Beware Estate Management Fees

It’s increasingly common for property developers to build estate management fees into the title deeds – it’s one of the hidden costs of buying a new build home. Management fees are in addition to council tax and service charges. They cover the upkeep of communal areas including private roads, gardens and car parks.

Check the fine print thoroughly. People paying estate management fees aren’t currently covered under consumer rights and there’s no dispute resolution service, although they can dispute estate management fees in county court.

The Government is, however, taking action. The Leasehold and Freehold Reform Act 2024 received Royal Assent on 24th May 2024. When it eventually comes into force (which could take years), it will give freeholders the right to challenge unreasonable estate charges and the standard of work via the First-tier Tribunal (Property Chamber). Freeholders will also be able to apply to the tribunal to appoint a substitute manager where their estate management company is failing.

In 2025, the Government also published the results of two consultations: one on estate management fees paid to privately managed estates and another on how to manage estate management fees at future new build developments. The Law Commission has been asked to report to the Government with recommendations.

4. Put In An Offer And Pay A Reservation Fee

Like any house price, the price advertised is only an asking price, so you should be prepared to negotiate. Often, deals are available at the beginning of the development or when only a few properties remain.

Compare the price of the new build home to similar ‘old’ houses in the area that have sold recently. Check the price per square foot to get a rough idea of any premium you are paying.

If you can’t negotiate on price, ask the developer to pay your stamp duty or throw in freebies such as flooring or furniture.

If your offer is accepted, you will need to pay a reservation fee. The cost varies but it is normally around £1,000 and will be deducted from the deposit payable on exchange.

If you pull out, you will lose your reservation deposit.

5. Start The Legal And Financial Process

Appoint a conveyancing solicitor to deal with the legal aspects of your purchase. The legal process of buying a new build home can be more involved than buying a resale property. The solicitor must check the builder’s planning permission, adherence to building regulations, utility connections, and plans for maintenance. They will also arrange to exchange contracts and establish a completion date with the developer’s own conveyancing solicitor.

At this point, you can start the process of applying for a mortgage.

6. Exchange Contracts And Pay Your Deposit

You will usually exchange contracts months before you move into a newly built property. At this point, you will be required to pay a deposit, usually between 10% and 30% of the purchase price.

7. Wait For Your House To Be Ready

Your builder will give you an approximate completion date but this may be subject to delays the developer has no control over – the weather being the main culprit.

Significant delays can be a problem as you risk losing your mortgage offer. Most mortgage offers are valid for six months. Ideally, get the developer to agree to a ‘long stop’ date. If they don’t finish the property by this date, you will be entitled to compensation.

8. Book A Snagging Survey

Try to have a snagging survey conducted to identify any issues with the property as soon as possible. It takes around four hours, costs £300-£600 on average, and takes in everything from drainage and roofing to poor paintwork and sticky door hinges.

Ideally, the snagging survey should take place before completion as you’re in a stronger position to negotiate a quick resolution, and clearly aren’t responsible for scratched surfaces or plumbing issues.

9. Get Ready To Move In

When your new home is ready to move into, your solicitor will arrange for your mortgage lender to release the funds and take the necessary steps to complete the sale. On the day of completion, you will receive the keys and other paperwork such as logbooks, manuals and guarantees. Make sure you understand the process for reporting any defects.

Do I Need A Specialist New Build Solicitor?

The legal side can be more complex than other types of conveyancing, so when buying a new home, solicitors with new build experience should be favoured.

A specialist new build solicitor will know to:

• Check what the exchange deadline is
• Put a long stop completion date in place
• Conduct rapid searches and enquiries
• Review complex documents, such as development and plot-specific plans
• Look out for management company obligations, restrictive covenants and infrastructure adoption agreements
• Ask for estate management details, include fees
• Confirm that all local authority pre-commencement and pre-occupation planning conditions have been met
• Check an NHBC inspection has taken place
• Only complete and release funds after snagging

New Build Mortgages

You may be charged a higher interest rate for a mortgage on a new build property. This is because lenders see these mortgages as riskier due to the possibility that the property’s value may fall in its early years.

Some lenders set a lower maximum loan to value ratio on new build mortgages, so you might find you need to save a larger deposit.

Timing can also be an issue as mortgage offers tend to last for six months. If the development takes longer than this to complete, you may need to re-apply for the loan. If your financial circumstances have changed or the property’s value has fallen during this time, you may find it harder to resecure a deal.

What Schemes Can Help Me Buy A New Build?

When it comes to new build homes, Help to Buy: Equity Loan Scheme, Help to Build: Equity Loan Scheme and the Home Builders Federation’s Deposit Unlock Scheme have all closed to new applicants. Other schemes are still in operation.

First Homes Scheme

First-time buyers can get a 30% to 50% discount on the market value of brand new homes from some housebuilders, or on resale homes that were originally bought through the same scheme. You must meet eligibility criteria. For instance, your household income can’t exceed £90,000 in London (or £80,000 outside of London), and local councils can set further restrictions.

Also, the home must not cost more than £250,000 (or more than £420,000 if the property is in London) after the discount has been applied. You must also have a connection with the area you are looking to buy in, such as growing up there or family living there.

Shared Ownership

A shared ownership scheme allows you buy typically up to a 75% share of the property’s value with a mortgage and rent the remainder from the developer or housing association. However, you’ll have to pay ground rent and service charges and follow certain rules. It is usually possible to increase the amount of the share until you own the property outright.

Own New Rate Reducer

The Own New Rate Reducer scheme makes it more affordable to buy with full ownership by bringing down your mortgage rate. Participating developers contribute a percentage of the property’s purchase price on qualifying homes.

Want to know more? Take a look at renting vs buying a house and second home mortgages.

Mortgage Guarantee Scheme

The Mortgage Guarantee Scheme has been made a permanent buying initiative. The scheme supports buyers trying to get onto the property ladder with a 5% deposit. The Government guarantees a percentage of the mortgage to the lender to reduce the risk of providing higher loan-to-value mortgages.

Are New Build Homes Freehold Or Leasehold? What The Reforms Mean For Buyers

If you are buying a brand new flat, it will normally be sold on a leasehold basis. A leasehold gives the purchaser the right to occupy the property for the period specified in the lease.

Owning a leasehold property will typically involve paying ground rent and a service charge covering costs including buildings insurance, maintenance and repairs, leisure facilities, concierge services, or additional security. If you buy a flat in a new build, have your solicitor check the lease thoroughly.

There are rolling changes to the leasehold structure, so read up before starting the buying process.

The Leasehold and Freehold Reform Act 2024 is now partly in force. All new houses are now built exclusively as freehold properties, apart from in exceptional circumstances. New build flats can still be created as leasehold but owners have stronger rights.

Leaseholders can now extend their lease or buy the freehold from day one of ownership. Previously they had to wait for two years to elapse.

More reform is on the cards. The draft Leasehold and Commonhold Reform Bill was published in January 2026. If it gains Royal Assent in its current form, new leasehold flats would also be banned. There would also be a cap on ground rents – limiting this annual fee to £250 and eventually reducing it to zero after 40 years.

The draft Leasehold and Commonhold Reform Bill is subject to change and may take years to become enforceable law.

Hidden Costs Of Buying A New Build Home

You need to be cautious about the hidden costs of buying a new build home. These are some of the less obvious costs to be aware of:

• New build premium – When buying a new build home, you will usually pay a higher price than if you were buying a similar home that has already been lived in. The latest figures suggest the new build homes premium is an average 30% more than existing properties.
• Fixture and fittings options – Some developers will allow you to choose your own flooring, kitchen cupboards etc., but these will often cost more than the standard fixtures and fittings that are included. You should check what is included in the price, as some essential items such as carpets may not be included.
• Landscaping – Many new builds do not include landscaping of the outdoor area and you will either pay them an additional premium for this or will have to complete the work yourself.
• Homeowner fees – If the property is leasehold, you will have annual fees to pay and you may also be required to pay estate management fees. Service charges for a new build flat can range from an average of £1,525 to £8,680. The average annual estate management fee at a new build development is £200 to £350.
• Costs of delays – New build developments can often run behind schedule, which means you may need to move into temporary accommodation and pay rent while you wait to move into your new home.

Pros And Cons Of A New Build

To help you decide if buying a new build home is right for you, here is a brief summary of the pros and cons.

Advantages Of Buying A New Build Home

• Guarantee – new build homes come with a 10-year guarantee, which means if any structural defects appear in the first ten years, they will be covered by insurance.
• Consumer protection – most developers offering the Buildmark Warranty have to join a consumer code for new homes. This ensures that best practice is followed in regard to marketing and selling the property.
• More affordable – most of the Government’s affordable housing schemes, such as the First Homes Scheme, only apply to new builds. Some home builders offer incentives too, such as paying for stamp duty or a cash payment towards paying the deposit.
• Good condition – repairs and maintenance should not be required as soon or as often as when you buy an older property. As such, maintenance costs during the first 10 years should be kept to a minimum.
• Energy efficient – new materials and standards mean your home is more energy efficient and therefore your energy bills should be lower than a similar older property.
• Personalisation – you can sometimes choose the fixtures and fittings if you’re buying off-plan to select styles and colour schemes to your personal taste rather than buying a property based on the taste of the previous property owner.
• No onward chain – this aspect can make the buying process smoother as there are no issues such as the seller pulling out if they can’t find a property or if their seller pulls out.

Disadvantages Of Buying A New Build Home

• Potential delays – the build may be subject to delays, which can mean your mortgage offer expires and you would need to go through the mortgage application process again. Delays can be caused by a number of issues, such as a shortage of materials or tradespeople or the developers’ other projects may over-run.
• Risk of defects – there can be defects, snagging and teething issues with the property, and some developers are not good at fixing these promptly. If you are not happy with the snagging survey, you should get an independent survey to ensure all defects are recorded and logged with the developers to get resolved.
• Conveyancing challenges – the conveyancing can be more complex as there are many variables to consider. If you are buying the property off-plan, conveyancing searches are more complicated as the building isn’t completed yet.
• Ongoing construction – if you are the first to move in, you may be living in a construction site with all the noise, dust, and mud that goes with that environment. Depending on the size of the plot, you could have construction work going on for months or even years while the rest of the site is completed.
• Property size – dimensions may be smaller when buying a new build vs an old house, as developers aim to fit more properties into the plot. You may also have only a small outdoor area compared to older properties with more land.
• Hidden costs – buying a new build home involves asking the right questions on costs and fees from the outset. For instance, estate management services can rise steeply, so make sure that you request a full breakdown of costs regarding any ongoing costs which may be attached to your title deed.

New Build Homes And The Future Homes Standard

The Future Homes Standard will improve energy efficiency in new homes. The standard will come into force on 24th March 2027. There will be a 12-month transitional period for housebuilders to adapt. From March 2028, all brand new homes must produce 75% to 80% fewer carbon emissions than homes built under older 2013 standards.

Buyers of new homes should expect energy performance certificates that are consistently A and B rated, thanks to a greater use of heat pumps, PV solar panels, better insulation and improved ventilation.

What Is The New Homes Quality Code?

The New Homes Quality Code has been co-created and administered by the Home Builders Federation and the New Homes Quality Board. This set of rules is designed to improve build quality and customer service in the new build industry, from the point of marketing to up to two years after move in.

Running alongside the code is the New Homes Ombudsman Service. This is a free, independent dispute resolution body. It investigates and resolves complaints from buyers of new build homes against registered developers

The above schemes work in tandem with the NHBC 10-year warranty to give those buying a new build home maximum confidence.

Common Questions About New Builds

And Finally

If you have further questions about the pros and cons of buying a new build in Belgravia, Marylebone, Paddington, Chelsea, Paddington Basin, Lancaster Gate, Earl’s Court or Camden – we can help.

Plaza Estates have many years of experience dealing with new build properties. If you would like help with buying a newly built property in central London contact us today.

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