New-build properties account for roughly 10% to 12% of UK housing transactions. Developers offer attractive incentives but these can mask higher prices, and not every lender views new build favourably.\n\nDeveloper Incentives — Common offerings include stamp duty paid, legal fees covered, furniture packages, kitchen or flooring upgrades, and cashback on completion. Most lenders cap total incentives at 5% of the purchase price for LTVs above 75%. If incentives exceed this cap, the lender may reduce the property valuation by the excess amount.\n\nLender Restrictions — Some lenders will not lend on new-build flats in certain developments, particularly high-rise blocks or areas of oversupply. Others restrict lending to builders registered with NHBC, Premier Guarantee, LABC, or Checkmate. Cladding and fire safety remain concerns, and lenders may require an EWS1 form even on recently completed buildings.\n\nValuation Challenges — Independent valuers sometimes value new-build properties below the asking price, particularly in developments with heavy incentives. This creates a shortfall you must fund yourself. It is more common than developers admit.\n\nSnagging — New homes almost always have defects. Commission a professional snagging survey (200 to 400 pounds) before completion or within the first few weeks. Common issues include poorly finished paintwork, misaligned doors, incomplete grouting, and drainage problems. The developer is obligated to fix defects within the warranty defect period, usually 2 years.\n\nNew Build Premium — Research suggests new-build properties carry a price premium of 10% to 25% over equivalent second-hand homes. This premium tends to disappear on resale, meaning your property may be worth less than you paid if you sell within the first few years.\n\nLenders Experienced With New Build — Halifax, Nationwide, NatWest, Barclays, Santander, Accord, The Mortgage Works, and Leeds Building Society all have active new-build lending.