In short
Buying a new-build home in England differs from buying a second-hand one: you may buy off-plan, pay a reservation fee that is refundable only in some cases, and be asked to exchange contracts soon after reserving (GOV.UK). GOV.UK says most new builds have a 10-year warranty for major structural problems and a 2-year warranty for general defects, which may not cover the whole property. Separately, the time limit to sue under the Defective Premises Act is 15 years for new claims (30 years for rights that arose before 28 June 2022). The statutory new homes ombudsman scheme in the Building Safety Act 2022 was not in force on legislation.gov.uk on 21 October 2026.
Money: reservation, deposit and charges
- Reservation fee. It holds the property, but GOV.UK warns it “may only be refundable in certain circumstances”: read the small print before paying. The reservation rules of the New Homes Quality Code are in gazumping and gazundering.
- Fast exchange. Many developers ask you to exchange and pay a deposit shortly after reserving. Tell your lender and conveyancer the deadline at once.
- Recommended firms. Developers often have referral relationships with mortgage advisers and solicitors. GOV.UK says you are under no obligation to use them.
- Extra charges. A new estate may carry estate facility charges for shared roads or green spaces. Your conveyancer should explain them before you sign.
- New-build premium. GOV.UK notes that a new build may cost more than a similar second-hand home.
Timescales and the long-stop date
If the home is still being built, the developer gives an expected finish date, which can move. If it is delayed, your mortgage offer may need renewing, as offers last for a limited period. GOV.UK suggests writing a long-stop date into the contract, which lets you withdraw if the build is badly delayed. Ask what happens if the date is brought forward too.
Snagging
Snags are defects or unfinished work. GOV.UK suggests agreeing at exchange that a snagging survey will be done once the home is built and before completion. A professional or you yourself can do it; report the list to the developer and ask for repairs before you move in. Before making an offer, understand what will be fixed before completion and what happens if you have a dispute with the builder.
Warranties and legal protection
| Protection | What it covers | Source |
|---|---|---|
| Builder’s warranty | Usually 10 years for major structural problems, 2 years for general defects; may exclude parts of the property and attached land | GOV.UK |
| Defective Premises Act 1972, section 1 | A legal claim about a dwelling under section 1 of the 1972 Act. Time limit: 15 years from when the right of action accrued; 30 years for rights that accrued before 28 June 2022 | Building Safety Act 2022, s. 135, in force 28 June 2022 |
| New homes ombudsman scheme | A statutory scheme the Secretary of State must arrange | Building Safety Act 2022, s. 136, shown as prospective, not in force |
Ask the developer for the warranty document, check who provides it, and confirm what it excludes before you pay a deposit. GOV.UK also says to ask the developer for all material facts about the property before committing.
Leasehold, surveys and Scotland
GOV.UK says most flats are leasehold, and most new qualifying long leases cannot charge more than a peppercorn in ground rent since 30 June 2022: see leasehold and freehold and service charges and ground rent. In Scotland, a first-occupier new build does not need a Home Report, but an EPC is still required: see buying a home in Scotland.
Schemes for new builds
- First Homes (England): new-build homes sold to first-time buyers at 30% to 50% off, capped at £250,000 after discount (£420,000 in London). Developer incentives must not exceed 5% of the discounted price.
- Help to Buy - Wales: an equity loan of up to 20% on new builds up to £300,000.
What it costs
No official figure exists for reservation fees, snagging surveys or estate charges: they are set by the developer or the firm. Stamp Duty applies as for any purchase; test it with the stamp duty calculator.
Which professional to consult
A conveyancer checks the contract, the long-stop date, the warranty and the estate charges. A surveyor can carry out a snagging inspection. A mortgage adviser checks how long your mortgage offer lasts. See also home survey levels.
Frequently asked questions
Is a new-build reservation fee refundable?
Only in certain circumstances, according to GOV.UK. Check the reservation agreement before paying.
Do I have to use the developer’s solicitor or mortgage adviser?
No. GOV.UK says you are under no obligation to use firms the developer recommends.
How long is a new-build warranty?
GOV.UK says most new builds have a 10-year warranty for major structural problems and 2 years for general defects, which may not cover the whole property.
What is a long-stop date?
A date written into the contract after which you can withdraw if the home is still not finished.
Is there a statutory new homes ombudsman?
Not yet. Section 136 of the Building Safety Act 2022, which creates it, was shown as prospective on legislation.gov.uk on 21 October 2026.
General information drawn from the official sources cited and dated on this page. It is not legal, tax or financial advice: for your own situation, ask a licensed professional.
More guides on buying
- Buying a home in England: the steps, offer to registration
- Buying a home in Northern Ireland: process and registers
- Buying a home in Scotland: Home Report, offers and missives
- Buying a listed building: consent, offences and checks
- Buying a second home: SDLT, ADS and LTT higher rates
- Coal mining searches when buying a home in the UK: reports, costs and subsidence claims
- Conveyancing explained: who does it and what it covers
- Exchange and completion: when you are bound to buy
- First registration of unregistered land in England and Wales
- First-time buyer relief: England, Scotland and Wales
- Flood risk when buying a home: maps, zones and Flood Re
- Gazumping and gazundering in the UK: why they are legal before exchange and how to protect yourself
- Home survey levels 1, 2 and 3: which one to choose
- Japanese knotweed and buying a home: the legal position
- Joint tenants or tenants in common: buying a home together
- Land Registry fees in the UK: Scale 1, Scale 2, Registers of Scotland and LPS compared
- Land Transaction Tax in Wales: rates, higher rates, 30 days
- LBTT in Scotland: rates, first-time buyers, ADS, 30 days
- Lease extension cost: how the premium is worked out (England and Wales)
- Leasehold and freehold: what you own, and 2024 reforms
- Missing planning permission or building regulations sign-off: what it means when buying
- Non-UK resident SDLT surcharge: the 2% and how to reclaim it
- Property searches when buying a home in the UK
- Restrictive covenants, easements and rights of way on a UK property
- Right to Buy: discounts, rules and where it still exists
- Stamp Duty Land Tax: rates, who pays and the 14 days
- Stamp duty refund on higher rates: reclaiming the surcharge after selling your old home
- The Home Report in Scotland: contents and your rights
- The title register: what it shows and how to get it
Sources
- How to buy a home: section 6, buying a new build property (GOV.UK) (consulted 21 October 2026)
- Building Safety Act 2022, section 135: limitation periods (legislation.gov.uk) (consulted 21 October 2026)
- Building Safety Act 2022, section 136: new homes ombudsman scheme (legislation.gov.uk) (consulted 21 October 2026)
- First Homes scheme: first-time buyer's guide (GOV.UK) (consulted 21 October 2026)