Buying a new home could save more than £50,000

Those buying a new property could save themselves more than £50,000, according to a new report detailed on OPPToday.

The cost of upgrading an older property to the same standard as a new build home could be more than £51,000, says the Home Builders Federation (HBF).

Property Investment Q&A #7: New Home or Renovation?

New energy-efficient homes also bring additional benefits, including saving UK buyers hundreds of pounds on utility bills and having brand-new fixtures and fittings, says the home building industry body in its Avoid the Money Pit document.

For a homeowner who wants to get the same standard of finish and functionality they could expect from a new build home, the cost could be up to £51,643. This includes paying out for:

  • Kitchen – £7,900
  • Bathroom – £3,800
  • Central heating – £6,185
  • Wiring – £8,850
  • Plastering – £5,240
  • Decorating – £2,500
  • Flooring – £2,628
  • Insulation – £775
  • Windows and doors – £4,900
  • Roofing – £4,000
  • Guttering – £690
  • External rendering – £4,175

Stewart Baseley, Executive Chairman of the Home Builders Federation, says, “Buyers of new build homes enjoy a huge number of benefits over those purchasing a second-hand home.”

“During the buying process customers will receive a high level of service and support from trained sales staff. Upon moving into a property that is designed for modern living, there are all the advantages of living in a home with brand new fixtures and fittings and the latest energy efficiency technologies.”

“This report helps to highlight the hidden savings that buyers of new build homes make. While most people have a budget put aside to get the little jobs done, costs soon add up when you need to replace a bathroom or a kitchen.

“£50,000 is a lot of money by anyone’s standards, and this new research emphasises just how much new build home buyers really get for their money.”

Many buying a resale home have to carry out decorative upgrades and personalisation with 70% saying that they also have to redecorate, 52% having to make improvements to their bathrooms and 51% to their kitchens.

“Even a small number of initial tasks such as personalising paint and decorations to make the home more suitable for a new owner can already add a substantial cost on top of the wider costs associated with purchasing a property. Costs can, in turn, increase exponentially, for example, if wiring, roofing or central heating upgrades or replacements are required or if previous work was not done to a professional standard.”

Builders remain bullish in the face of rising costs

Meanwhile, in the commercial sector, the number of new office buildings completed in London hit a 13-year high in the last six months, as demand for new space from financial services firms and the technology sector remains strong, according to a report in the Telegraph.

Around 3.9m square foot of new office space was completed in the last six months, the highest amount in a half year period since 2004, according to the latest Crane Survey carried out by Deloitte. Much of the development was planned during 2015, when confidence in the property market was at a high.

However, the firm warned that London could face a slowdown in its pipeline of new office buildings as firms reassess their options for staying in the capital in the wake of the Brexit vote.

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