Energy-efficient with minimal maintenance requirements and a high-quality finish, new build properties are a popular choice, but do they hold their value?
Let’s find out…
Do new builds lose value?
Initially, yes – most new builds will experience a slight dip in value after being purchased, typically lasting for two to three years. This is largely because many buyers are willing to pay that bit more to be the first occupants of a new property. Once the home is no longer “new”, and has been taken off the market, that initial premium naturally falls away, leading to a decrease in value.
When do new build houses increase in value?
After an initial drop in value, most new builds will go on to appreciate again – usually after five to 10 years.
This generally isn’t an issue for most buyers because it’s common for homeowners to spend around nine years on average (depending on property size and region) in a house they’ve bought before selling, according to Zoopla.
Research from Middleton Advisors also found that nine years is the optimum amount of time a homeowner should spend in a property before selling if they want a return on their investment.
Why do new builds appreciate in value?
Strategic location
To attract the right buyers and ensure high demand for the properties, most new build developments are strategically situated in sought-after locations.
These areas tend to benefit from strong transport links, are within catchment areas for good schools, and have easy access to local amenities like shops, restaurants, and GP surgeries.
For example, Eaton Homes’ latest residential development, The Old Cattle Market at Beeston, can be found in the beautiful Cheshire countryside and is close to many essential amenities, with the development itself soon to include a handy convenience store.
Energy-efficient features
In line with 2021 Building Regulations Part L (Conservation of Fuel and Power) and F (Ventilation), new homes built in the UK must meet strict energy efficiency standards to help reduce their CO2 emissions by at least 31%.
As a result, new build developers are currently required to incorporate energy-efficiency features into all their properties, including enhanced insulation, low-carbon heating solutions, and high-performance glazing, which translates into tangible, long-lasting utility savings for future homeowners!
Plus, soon to be added to these stringent requirements is the Future Homes Standard (FHS) which is scheduled to come into effect in December 2026 and will require new homes to produce 75-80% less carbon emissions.
High-quality finish
Unlike older properties that can have decades, or even hundreds of years, of damage, decoration, and wear and tear from previous inhabitants, new builds benefit from a fresh feel and high-quality finish.
This can make them particularly attractive to buyers looking for a home that they can move straight into – rather than a project that requires significant time and work to achieve a high-quality, modern look.
Strong market demand
Thanks to the strategic location, energy-efficient features, and high-quality finish, new-build properties are a popular option for a wide range of prospective buyers, including families, couples, and individuals looking to downsize.
This makes them appealing to a vast and varied market of buyers, helping to increase demand which supports existing new build owners with setting (and crucially, achieving!) higher sale prices when they’re ready to move.
Warranties
Another reason that new build properties can be a great place to invest your money is the reassuring warranties that come with them. Although there’s no legal requirement for developers to provide a builder’s warranty with these homes, most are sold with a structural warranty of 10-12 years. Subsequently, even if the property is sold within nine years, the warranty will still be in place, adding value to the home.
So, are new builds a good investment?
Put simply, yes! Well-designed new builds in a great location are a fantastic investment – especially if you’re planning on keeping the property for at least five years before putting it back on the market.
High-quality new builds in sought-after locations
At Eaton Homes, we look beyond the features and finish of the properties themselves to the benefits of the wider community, ensuring long-lasting value based on location alone.
Our most recent Beeston development is nestled in rural Cheshire, but still boasts easy access to essential amenities, such as convenience stores and schools, and speedy transport links to Manchester, Liverpool, and Warrington.
Ready to see how your new life could look in the charming Cheshire countryside or have similar questions to
‘Do new build houses go up in value’?
Simply speak to our helpful team today to arrange a viewing of The Old Cattle Market, Beeston.
Give us a call on: 01829 824044
Email your enquiry to: info@eatonhomes.co.uk
Ready to take the next step? read our full buying guide or browse homes currently for sale at Beeston Market.
