Homebuyers could make over £26,000 before completion
Buying off-plan: London homebuyers could make over £26,000 before completion
The latest research from Foxtons has found that buying a home off-plan can deliver a significant financial uplift, with London buyers potentially making more than £26,000 in added value before they’ve even picked up the keys to their new home.
Foxtons analysed average monthly new-build house price growth across the London market over the last five years, before looking at the average time it takes for a new-build to be completed once a property has been purchased off-plan. Foxtons then calculated how much new-build homeowners could see the value of their home rise when buying off-plan and before they’ve even walked through the front door.
New-builds boast historically strong house price growth
The research shows that, over the last five years, new-build house prices across London have increased by an average of 0.23% per month, with this average monthly rate of growth climbing to as high as 0.4% in Bromley.
Across the capital, the average new-build property currently costs £535,157. For the average new-build buyer purchasing off-plan, this means they could see this average house price climb to £561,412 over the estimated 21 months it takes to complete if they were to buy off-plan today. That’s an increase of 4.9%, or £26,255, before they’ve even moved in.
This is particularly relevant in London’s more expensive central boroughs, where buying off-plan allows purchasers to benefit from price growth during the construction period whilst securing a property in some of the capital’s most sought-after locations.
In the City of London, for example, the average new-build home currently costs £1,070,944 and, based on historic rates of new-build house price growth, could increase in value by £55,291 over a typical 21-month completion timeline.
A similar trend can be seen in Islington, where buyers purchasing off-plan could see a potential uplift of £40,244 before completion, while in Richmond upon Thames the increase could total £35,268. Even in Westminster, where average new-build prices already sit at £962,418, buyers could still see a potential uplift of £28,695 during the build period alone.
The findings come as Foxtons’ New Homes and APAC teams travelled to Hong Kong last week alongside Berkeley Group, where they showcased a number of London developments to international buyers whilst sharing the latest insight on the capital’s property market.
Amit Masrani, Sales Director – New Homes at Foxtons, commented:
“International buyers, particularly across APAC markets, have long recognised the advantages of buying off-plan in London. It provides the opportunity to secure a property in a globally desirable market at today’s price point, whilst benefiting from potential value growth before completion.
We continue to see strong demand for high-quality London developments from overseas buyers who are taking a long-term view and who value the combination of stability, transparency and growth potential that the London market continues to offer.”
Additional benefits of buying off-plan
Beyond the financial upside, buying off-plan offers a range of practical and lifestyle benefits. One of the most significant is the ability to purchase a truly brand new home, built to modern standards and typically covered by a 10-year new-home warranty. Buyers benefit from brand new appliances, strong insulation and soundproofing, and in many cases the option to personalise finishes such as kitchens, flooring and tiling, resulting in a home that is ready to move into with minimal maintenance required.
Energy efficiency is another key advantage. The vast majority of new-build homes achieve an EPC rating of A or B, far higher than the proportion seen across the resale market. As a result, buyers can expect lower running costs, improved year-round comfort and less need for future upgrades, particularly as environmental standards continue to tighten.
Buying off-plan can also support longer-term financial planning. With completion often taking many months, or even years, from the point of reservation, buyers have additional time to organise their mortgage, build savings or prepare the sale of an existing home. In some cases, there is also the flexibility to assign the contract prior to completion, allowing buyers to benefit from any uplift in value without taking full ownership of the property.
New-build developments also tend to benefit from strong levels of demand. Developers invest heavily in marketing from the outset, attracting a wide pool of buyers including first-time buyers, overseas investors and renters seeking modern, low-maintenance homes. Combined with strong transport links and ongoing investment in local infrastructure, this can help support both resale values and rental demand over time.
Finally, developers will often offer a range of incentives to secure early sales. These can include competitive launch pricing, stamp duty contributions, upgraded specifications or assistance with legal costs. Early buyers also benefit from having first choice of plots, views and layouts, which can further enhance both the lifestyle and long-term value of the property.
Sales Director – New Homes at Foxtons, Joel Ellis-Duffy, commented:
“Buying off-plan has long been a strategic move for those looking to maximise value, and our analysis shows just how effective it can be in the current market.
Even without additional developer incentives, buyers can benefit from house price growth during the build period, which can translate into a notable uplift by the time the property is completed.
In a city like London, where entry prices can be a barrier, this also creates an opportunity for buyers to access more premium locations whilst still benefiting from long-term value growth.
Beyond the financial upside, it’s also about the quality and efficiency of the product itself. New-build homes are designed for modern living, with energy performance and ease of maintenance built in from day one.”
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