New Build Properties in London: A Wise Choice for Today’s Investor?

You might have heard that new builds are expensive compared to second hand properties, In many respects, that might be right but rather than focusing just on the size of the property or the number of bedrooms, try to imagine what else you’re getting with the property that you might not be able to necessarily see.

Buying a new build property can offer many benefits. Not only can a new build property offer modern amenities and features, but it can also provide a solid return on investment as many of the expensive maintenance jobs costs of refurbishing do not need to be taken into account.

Low Maintenance Costs

New build properties are designed to be low maintenance. This means that you won't have to spend as much money on repairs and upkeep as you would with an older property. That means all of the plumbing, the electrics, the insulation, the windows are all brand new and built to a standard. There’s simply no telling what exactly you’re getting yourself into with an older property, especially one that was converted into flats decades ago but a now defunct builder. In addition, all new build properties come with building warranties that cover any defects or issues that may arise during the first few years of ownership. The developer will often include their own warranty to cover any snagging issues within the first 12 months of ownership.

Modern Amenities and Features

New build properties are designed to meet the needs of modern residents. This means that they often come with amenities and features that older properties may not have. For example, many new build properties have energy-efficient heating and cooling systems, smart home technology, and other modern features that can make them more attractive to renters or buyers. That means making savings on energy bills and not having to plan for any unforeseen maintenance works.

Increased Energy Efficiency

Many new build properties are designed with energy efficiency in mind. This will help to reduce energy bills and make the property more attractive to renters or buyers in the future who are not only concerned about their costs but increasingly, the environment.

Higher Rental Yields

New build properties might not initially look like they will command higher rental yields than older properties but this is a myth. Often when you’re buying a new build, it’s on the fringes of an established area or it’s part of an enormous regeneration project. Supply might actually be an issue initially but this is often short-lived. As buying and commercial operators move in, the area will become more attractive to live and create more competition for the homes on offer. When you combine this will reduced maintenance costs, you’ll see a higher return over the long run.

Greater Potential for Capital Appreciation

New builds have greater potential for capital appreciation over the long run. As I mentioned previously, this is due to the fact that the developments are often located in areas that are undergoing regeneration or redevelopment, which can lead to an increase in demand for the area which in turn affects values over time. It’s also worth noting that there is increasing pressure for properties to meet minimum EPC ratings and consumers are responding to this. It’s likely that new build properties will hold their value better over time as this trend continues.

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