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Do new builds keep their value?

Laura Gordon

Jul 8, 2024

New build homes acquire value, just like older properties, and can offer numerous benefits to their owners, as listed below:

No chain means less hassle during the buying process, and with Strata offering Part Exchange and Assisted Selling, you could save money upfront on the fees of selling your existing property.
Everything is brand new so you can enjoy a high standard finish across your home, and can often include expensive upgrades such as appliances, flooring and wardrobes worth thousands of pounds.
Your home won’t require expensive renovations that can sometimes be necessary to make older properties liveable, more valuable or energy efficient.
New builds come with a 10 year home warranty, giving you peace of mind should anything go wrong.
New builds are designed to meet the most recent building regulations and reduce environmental impact, meaning they are more sustainable and can reduce your bills too. Take a look at Strata’s sustainability strategy for more information on how we’re putting the environment first.

Do new builds go up in value?

Much like an older property, new builds can rise in value over time. Contrary to what some may believe, the majority of new build properties will not lose more than 10% of their value over 7 years, and many will maintain or grow their value.

Of course, external factors beyond your control will always have an impact on house prices. To get the most out of your investment, it’s advisable to live in your home for a few years before deciding to sell.

This is because the following factors can help to build up value on your home.

Quality of the new build

The quality of a new build significantly influences how it will age over time, and can therefore impact its value. New-builds constructed using high-quality materials and expert craftsmanship are less prone to wear and tear, and as a result, less likely to require extensive repairs.

Naturally, a well-built property with a solid structural foundation and attractive design is more likely to retain its value over time. Fortunately, Strata homes are renowned for being among the highest quality new-builds on the market.

Supply and demand

Supply and demand can heavily influence the housing market, particularly for new builds. Demand is driven by population growth, economic conditions, interest rates, and consumer preferences. When demand for houses exceeds supply, prices tend to rise.

Rising living costs and high interest costs can cause demand to fall. External factors such as supply chain problems due to material price increases and project delays can affect supply in the new build market.

In short, when supply of new builds is down, you could be in a good position to sell – especially if your home is only a few years old.

Choosing a reputable developer

The popularity of a housing developer and quality of the houses they build can also influence demand, which influences whether a new build might lose value or gain value, too.

Buying a home from a reputable developer, like Strata, stands you in good stead for the future. We’re proud to be registered with the New Homes Quality Board, and covered by the New Homes Ombudsman Service as a mark of our commitment to quality.

How to add value when selling a new build

Integrate smart home technologies with thermostats, security systems, and lighting controls.
Convert unused space. Turn attics and garages into practical living spaces or home offices.
Enhance curb appeal with a fresh lick of paint, a new front door, and well-kept pathways.
Optimise your garden space by building a well-designed deck or patio.
Improve lighting with modern fixtures and increase natural light through larger windows or skylights.
Establish a home office: As remote work becomes more common, having a dedicated workspace can be beneficial.

In conclusion, while new builds may experience an initial dip in value, they remain a strong investment with the potential to appreciate over time – another great reason to invest in a Strata home.

The numerous benefits of new-build homes—such as modern standards, energy efficiency, warranties, and the potential for lower bills—make them an attractive option for homebuyers.

For more new build tips and advice, check out our article on why new builds are a good investment and the cost for buying a house.