Why should I buy a new home?

Making the decision to move house or step foot on the property ladder is not to be taken lightly.

A range of factors must be considered, from the financial implications, to the effect on your family, to future changes to your circumstances and the property market.

One of the most important considerations is whether to buy a new or existing home, but regardless of whether you are an existing homeowner or looking to take your first steps onto the housing market, buying a new home has a number of advantages. We look at why new is the best option.

Rents are rising

There is a long-held belief that renting a property from a landlord is ‘dead money’, because - unlike mortgage payments – the monthly outlay is not increasing a tenant’s stake in the property. Recent figures from the Office for National Statistics reveal that rental costs show no signs of falling, rising by almost 3 per cent in 2015 alone.

This effectively means tenants are paying an increasing amount of money to a landlord who either owns the property outright and has no major monthly outlay, or is paying a set amount towards a mortgage that will not be increasing, despite their rental charges doing so.

House prices are rising

UK house prices are now at a record high and the trend shows no sign of abating. Figures for October 2015 show that annual growth is 10.5 per cent, with the national average cost of a house now standing at £224,242. With a similar pattern predicted for 2016, buying new now appears to be a worthwhile investment for the future.

Custom specification

Unlike existing properties, every square inch of an Avant Homes property is inspired by what homebuyers have said they want in a new house.

If you purchase early enough in the construction stage, you can even specify certain elements of the property. Regardless of when you buy, you can guarantee a best-in-class home built to the highest quality and specification and modern requirements.

Peace of mind

All Avant Homes are built to an exacting standard and come with a 10-year NHBC warranty or Premier Guarantee. This covers the cost of work done to any part of the home not built to NHBC specifications for a full decade after purchase.

Not only does it remove a great deal of concern about the maintenance of the property; it is also a seal of approval that every part of the home has been built to the highest possible standards.

Government assistance

If you are purchasing a new home and meet eligibility criteria, you can benefit from the government’s multi-faceted Help to Buy programme, which offers a number of options to buyers.

Under the Help to Buy equity loan, the government will lend you up to 20% of the cost of your new home, meaning you only need a 5% cash deposit and a 75% mortgage to make up the remainder. You will not be charged fees on the 20% government loan for the first five years of owning your home.

The Help to Buy ISA applies to those who are saving to buy their first home, with the government boosting any savings contributions over 25%. The minimum government bonus is £400, meaning that you need to have saved at least £1,600 into your Help to Buy ISA, while the maximum government bonus is £3,000, which would be added to £12,000 of savings at the point of purchasing your brand new home.