Choosing between a brand-new home and an established property is one of the biggest decisions you’ll make when buying. Both options have distinct advantages and challenges, and the right choice depends entirely on your priorities, budget, and long-term plans.
After helping hundreds of buyers navigate this decision over the past three decades, we’ve seen how personal circumstances shape what works best for each family. Some buyers fall in love with the character of a Victorian terrace, while others value the convenience and energy efficiency of a modern home. Neither choice is objectively better than the other.
Let’s explore the key differences to help you decide which type of property suits you.
What Defines a New-Build?
A new-build is a property that has been recently constructed and never lived in. Most are part of larger developments, though some are individual homes built on single plots. Around 85% of new-builds achieve an A or B energy efficiency rating, compared to less than 5% of older properties.
An older home is any property that has had at least one previous owner. This category covers everything from Victorian and Edwardian houses with period features to more modern properties built in the 1970s, 80s, or 90s.
The Case for New-Builds
Energy Efficiency Saves You Money
This is perhaps the strongest argument for buying new. Modern construction standards mean new-builds use significantly less energy than older properties. Research from the Home Builders Federation shows that the average new-build homeowner pays around £800 per year for heating, hot water, and lighting, compared to £1,789 for those in older properties. That’s a yearly saving of almost £980.
This gap exists because new-builds benefit from superior insulation, high-efficiency heating systems, double or triple glazing, and modern building techniques designed to retain heat. When energy costs rise, these savings become even more valuable.
10-Year Warranty Protection
Most new-builds come with an NHBC warranty or similar protection covering structural defects for 10 years. The warranty typically includes deposit protection if the builder becomes insolvent before completion, a two-year period where the builder must fix any defects, and eight years of insurance coverage against major structural problems.
This level of protection simply doesn’t exist with older properties, where any issues discovered after purchase become your responsibility and expense.
No Chain Complications
When you buy from a developer, there’s no chain to worry about. The transaction is typically more straightforward because you’re dealing with a company rather than an individual seller who may be waiting on their own purchase. This can speed up the process and reduce the risk of the sale falling through.
Move-In Ready
Everything in a new-build is, well, new. You can move in without needing to redecorate, replace dated kitchens or bathrooms, or undertake expensive renovation work. Many developers also allow buyers to choose fixtures, fittings, and finishes, giving you some control over how your home looks.
The Drawbacks of New-Builds
The New-Build Premium
New-builds typically cost more than comparable older properties in the same area. According to the UK House Price Index, the average new-build costs around £380,000 compared to £283,000 for older homes. This premium reflects the modern specifications, energy efficiency, and brand-new condition buyers are paying for.
Value Depreciation Risk
Here’s an uncomfortable truth: new-builds can lose value once they’re no longer “brand new.” Like buying a new car, properties can experience initial depreciation once they lose their new-build status. This happens because part of what buyers pay for is the novelty and guarantee of being the first occupant.
This matters most if you’re planning to sell within two to five years. If you’re buying as a long-term home, the initial depreciation becomes less significant as property values generally recover and grow over time.
Space Constraints
Modern developments often pack homes onto smaller plots to maximise land use. This can mean new-builds feel less spacious than older properties, with smaller rooms, limited storage, and compact gardens.
Quality Concerns and Snagging
Not all new-builds are created equal. Industry surveys show that the vast majority of new-build buyers report problems such as snags and defects to their builder after moving in. While most issues are minor, some buyers face more serious structural or workmanship problems.
The Case for Older Homes
Character and Charm
Period properties offer something new-builds simply cannot replicate. Original fireplaces, sash windows, high ceilings, ornate cornicing, stained glass, and architectural details give older homes personality and uniqueness. Period properties consistently command premium prices, with Georgian homes particularly sought after for their architectural heritage.
If individual character matters to you, an older property will almost always win this comparison.
More Space
Properties built decades ago when land was less constrained often offer more generous proportions. Bigger rooms, higher ceilings, larger gardens, and more parking space are common in older homes, making them particularly attractive for families.
Lower Purchase Price
While period properties with original features can command premiums, many older homes cost less than equivalent new-builds. This gives you the opportunity to buy more square footage for your money, though you need to factor in potential renovation costs.
Established Locations
Older properties tend to be in more central, established locations with mature communities, local amenities, shops, schools, and transport links already in place. New-build developments are often on town or city outskirts, where infrastructure and community atmosphere take time to develop.
Potential to Add Value
Older properties often present opportunities to increase value through improvements. Extensions, loft conversions, modernised kitchens and bathrooms, or energy efficiency upgrades can all boost an older property’s value substantially.
The Drawbacks of Older Homes
Higher Running Costs
Energy inefficiency is the biggest ongoing expense with older properties. Poor insulation, single-glazing, inefficient heating systems, and draughts all contribute to significantly higher energy bills. Unless the property has been recently renovated with modern standards in mind, expect to pay considerably more to heat and power an older home.
Maintenance and Repairs
Older properties require more upkeep. Boilers need replacing, roofs may need repairs, windows might need upgrading, and period features require specialist maintenance. These costs add up over time and can strain budgets, particularly for first-time buyers.
Survey Surprises
While a comprehensive survey helps identify problems before purchase, older properties can still spring expensive surprises. Structural issues, damp, outdated electrics, or plumbing problems discovered after moving in become your financial responsibility.
Chain Complications
Buying an older property usually means entering a property chain, where your purchase depends on your seller successfully buying their next home, and so on. Chains can collapse, causing stress and delays.
Making Your Decision
Buy a New-Build If:
- You prioritise low running costs and want predictable monthly expenses. Falling energy prices in 2025 make the efficiency savings of new-builds even more attractive.
- You value convenience and want to move in without undertaking renovation work.
- You're a first-time buyer who appreciates the security of warranties and simpler conveyancing.
- You plan to live in the property long-term (at least 5-10 years) so initial depreciation isn't a concern.
Buy an Older Home If:
- Character, charm, and period features are important to you and you're willing to pay for upkeep.
- You want more space for your money, particularly larger rooms and gardens.
- You're happy to take on renovation projects and see the potential to add value.
- You prefer established locations closer to town centres with mature communities.
- You have a smaller budget but need more square footage.
What About Mortgages?
Both property types are mortgageable, but there are some differences. Some lenders view new-builds as slightly higher risk due to potential depreciation, occasionally requiring higher deposits. However, many developers have arrangements with lenders offering competitive rates, particularly for first-time buyers using schemes like Help to Buy.
For older properties, lenders focus more on the property’s condition and survey results. Structural issues or poor maintenance can affect how much they’re willing to lend.
Our financial services team can connect you with mortgage advisers who understand the nuances of both property types and can help you secure the best deal for your circumstances.
Getting Professional Advice
Whether you’re considering a new development or an older property, getting an accurate property valuation is essential. Understanding what similar properties are actually selling for, not just asking prices, helps you make informed offers and avoid overpaying.
At Michael Anthony Estate Agents, we’ve worked with both new-build developers and sellers of older properties since 1989. We understand the local market across our four branches and can provide honest guidance about which properties represent genuine value and which might present challenges down the line.
If you’re thinking about selling your current home to move, we can advise on the best timing and strategy, whether you’re considering a new-build or older property as your next move.
Frequently Asked Questions
Do new-builds lose value after you buy them?
Yes, new-builds can experience initial depreciation once they lose their “brand new” status, similar to buying a new car. This matters most if you plan to sell within 2-5 years. Over the long term (10+ years), new-builds typically follow broader market trends and the initial depreciation becomes less significant. Location, build quality, and market conditions all influence whether a new-build holds its value well.
Are older homes always cheaper than new-builds?
Not always. While new-builds typically carry a premium compared to similar older properties, period homes with original features in desirable locations can command significant premiums themselves. Georgian, Victorian and Edwardian properties often sell for substantially more than average house prices. The key is comparing like-for-like in the same area.
How much can I really save on energy bills with a new-build?
The average new-build homeowner pays around £800 per year for heating, hot water, and lighting, compared to £1,789 for those in older properties. That’s nearly £1,000 per year in savings. New-builds typically achieve A or B energy efficiency ratings, while most older properties rate C, D, or lower. These savings increase as energy prices rise.
What does an NHBC warranty actually cover?
The NHBC Buildmark warranty covers new-builds for 10 years and includes three main elements: deposit protection if the builder becomes insolvent between exchange and completion, a two-year period where the builder must fix defects and breaches of NHBC standards, and eight years of insurance covering major structural problems like foundation defects or roof issues. It doesn’t cover general wear and tear, cosmetic issues, or alterations you make yourself.
Can I negotiate on new-build prices?
Yes, particularly at certain times. Developers may be more flexible if they need to hit sales targets before year-end, during early phases of a development when they need to secure sales to fund later phases, or when they have unsold units in a completed phase. Even if they won’t budge on price, developers often offer incentives like furniture packages, stamp duty contributions, or upgraded fixtures. Always try negotiating.
Should first-time buyers choose new-builds or older homes?
There’s no single answer. New-builds offer advantages for first-time buyers including no chain complications, warranties providing peace of mind, lower energy bills making budgeting easier, and move-in-ready condition requiring no immediate renovation costs. However, older homes might stretch your budget further if you need more space and don’t mind taking on some maintenance. Consider your DIY skills, available time for upkeep, and whether you prioritise character over convenience.
How Michael Anthony Estate Agents Can Help
Choosing between a new-build and an older property is a personal decision that depends on your unique circumstances, priorities, and plans for the future. With over 30 years of experience helping buyers across Buckinghamshire, Bedfordshire, and Hertfordshire, we’ve guided countless families through exactly this choice.
We work with both new-build developers and owners of period properties, giving us insight into the pros and cons of both options in your local area. Whether you’re a first-time buyer weighing up your options, a growing family needing more space, or someone looking to downsize to a low-maintenance property, we can provide honest advice tailored to your situation.
Our services include free property valuations to help you understand what you can afford, expert guidance on the buying process for both new and older homes, and connections to trusted mortgage advisers through our financial services team who can explain your borrowing options.
Contact us today to discuss your property search, or browse our current properties for sale to see what’s available. Whether you decide a new-build or older home is right for you, we’re here to help you find it.