3 ways a new-build could boost your purchasing position
The latest internal data release from award-winning mortgage adviser, Alexander Hall, has revealed that it’s not just younger, first-time buyers taking advantage of new-build benefits to buy one-bed flats. Multiple homebuyer demographics are purchasing at all levels of the property ladder, buoyed by improvements to the mortgage market landscape, which have seen lenders offer greater borrowing affordability for new-builds due to factors such as energy efficiency and specialist lending products.
New-builds aren’t just for first-time buyers
Alexander Hall’s internal data on new-build homebuyer activity shows that whilst first-time buyers remain the predominant buyer segment within the new-build market – accounting for 59% of all transactions – both home movers (22%) and buy-to-let investors (19%) also form a significant chunk of market activity.
This is further supported by data from Alexander Hall showing that 27% of new-build homebuyers are aged 40 or above and, whilst studios (4%) and one-bed flats (37%) account for 41% of all new-build properties sold, two-bed properties are the most popular (45%), whilst three-beds account for one in 10 purchases (11%).
Benefits to first-time buyers
New-builds offer a variety of benefits for first-time buyers, including the ability to purchase chain-free homes, which reduces the risk of delays or fall-throughs. They are built to modern safety and energy-efficiency standards, providing peace of mind, and a range of schemes such as Deposit Unlock, Own New, and FTB-specific affordability products are available to support this group in securing their first home.
Benefits to home movers
For home movers, new-builds offer move-in-ready properties that remove the need for DIY or upgrades. Purchasing off-plan can allow input into the final design, ensuring accessibility and personal preferences are met. The energy efficiency of these properties can lower ongoing utility costs, and they are often located near green spaces, shops, healthcare, and transport links, making them convenient and sustainable choices.
Benefits to landlords
Landlords can also benefit from new-builds, which attract higher-quality tenants, especially in units with co-working spaces or smart-home technology, resulting in higher rents compared to older homes of a similar size.
What’s more, new-build homes offer EPC ratings of A or B which will meet upcoming regulatory requirements for rental properties in 2030.
Additionally, lower maintenance costs and ten-year warranties help reduce unexpected expenses, making them a lower-risk investment.
How buying a new-build can boost your mortgage affordability
Recent improvements to lender propositions have made new-build mortgages more accessible. Energy-efficient products may offer lower interest rates, and lenders often consider the reduced energy costs when assessing affordability, allowing buyers to potentially borrow more than they could for older, less energy-efficient properties.
Greater availability of low deposit options, such as 5% for houses and 5–10% for flats, combined with the acceptance of developer incentives towards stamp duty and legal costs, further enhances affordability.
Longer mortgage offer validity periods are also available for off-plan purchases, in some cases extending mortgage offer lengths by up to nine to 12 months. Flexible lending is offered for professional occupations, key workers, and first-time buyers, enabling higher income multiples and more competitive mortgage terms.
Stephanie Daley, Director of Partnerships at Alexander Hall, commented:
“With rising energy costs and stricter regulations on property standards, new-builds offer first-time buyers, homeowners, and landlords a future-proof solution.
Not only are they more energy-efficient, saving hundreds on bills each year, but they also come with developer incentives, modern amenities, and fewer maintenance concerns. In today’s market, buying a new-build is not just a smart financial decision, it’s a lifestyle upgrade.
We’ve also seen lenders introduce a range of new products and initiatives to help the nation’s homebuyers when it comes to securing a mortgage on a new-build property, further boosting appeal beyond existing incentives.
The combination of low-deposit options, enhanced income multiples, and specialist purchasing schemes is creating opportunities for buyers who may have thought a new-build was out of reach. With the right guidance, now could be one of the best times in recent years to secure a new-build home.”
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