Purchasing a property that hasn’t been completed — or even started — may seem like a nerve-racking prospect.
Yet choosing an off-plan home is growing in popularity: last year 67 per cent of off-plan purchases were made by first-time buyers, a figure driven by a lack of second-hand homes available on the market.
Of course, advances in technology mean that you may be able to have some kind of computer-generated walk through of your prospective home.
On the ladder: Last year 67% of off-plan purchases were made by first-time buyers alone, a figure driven by a lack of second-hand homes available on the market
Yet ultimately an off-plan purchase is exactly that — there’s little or nothing concrete to see.
So what are the pros and cons of buying a home before the shovel hits the earth?
We asked the experts…
A chance to create your dream home
Signing up for an off-plan property means you can secure your new home for a relatively low reservation fee, usually as little as a few hundred pounds, says Andrew Duncan, land director at Kelvin Properties.
‘Buying early can give the buyer peace of mind that they have secured their home, avoiding the stress of the open market that can lead to disappointment or having to pay over the odds.’
It also means you can let your imagination fly and truly create a dream home.
‘One of the biggest advantages of buying off-plan is that buyers can personalise their home — from kitchen units, bathroom tiling and floors,’ says Yolanda Jacob, sales and marketing director at Barratt East London.
Off-plan homes can also come equipped with the latest technology, sustainability and architectural trends.
Will it save you any money?
Possibly, but it’s not clear cut. Buying off-plan should mean you get your property at a fixed price during its construction phase. So hopefully, by the time it’s finished, the value will have risen.
But Louisa Jade Tomlin, field sales manager for Dandara Northern Home Counties, warns: ‘Remember house prices still depend on various factors including location, general property market and reputation of the developer.’
There are, however, other money-saving aspects to buying a home this way.
James Needham, director at property investment experts Alesco, says: ‘New properties typically require less maintenance and repairs, too, reducing ongoing costs, while also being generally more energy-efficient, leading to lower heating and water payments.’
Reserved: Off-plan homes can be secured for a low reservation fee – but buyers must be vigilant and check in on the developer’s progress
How long will the build take?
Your developer should finish your home on time and to the agreed standard. But for this to happen you need to do some due diligence.
For example, with multiple home schemes, seek reassurance that the whole development will be finished as planned, and you are not committed to buying a property in the middle of a field.
Peregrine Mears, director of Peregrine Mears Architects Ltd, says: ‘Agreeing the specification is also essential, before you commit.
‘It needs to be clear, detailed and as part of the contract. For example, kitchen units with white goods, including manufacturers’ make and model number.’
Once you’ve bought your home, visit the site often to monitor the progress.
Most developers comply with either the Consumer Code For House Builders or the New Homes Quality Code, which are both industry charters put in place to protect consumers, says Andrew Duncan.
‘These codes require the developer to include protections in the legal contract to deal with a scenario where the as-built property requires to be different (eg. construction materials, design or layout) from what the buyer was shown at the time they reserved the property.’
Such provisions strike a balance between the practical need for a developer to occasionally make minor changes to what was originally planned, and the buyer needing protection from changes that would significantly or substantially impact the size, appearance or value of the property they are contracted to buy.
What are the likely pitfalls?
Yolanda Jacob suggests prospective buyers visit other developments by the same builder.
‘This often offers reassurance to buyers, as they can see the end result,’ she says.
Above all, get on with your builder, keep in regular touch and ask lots of questions.
‘Create an open dialogue to get up-to-date feedback on progress and to be made aware of any issues that arise,’ adds Chris Breckenridge, a partner at estate agency Corum.
