Selling a New Build Property: Tips and Considerations

Selling a new build property is not quite the same as selling an older home. There are warranties to transfer, snagging lists to address, and a resale market that views recently built homes differently from established properties. If you purchased from a developer within the last few years, your buyer's solicitor will have specific questions that do not arise with a traditional resale.

This guide covers everything you need to know as a seller of a new build in England and Wales, from how your home will be valued on resale to the documents you must provide. If you are also looking at the broader costs involved in selling, our conveyancing costs breakdown covers every expense to expect.

Understanding the new build premium and resale value

One of the most common concerns for new build sellers is whether their property has held its value. New builds are typically sold at a premium of around 10% to 20% over comparable second-hand properties. This premium reflects the appeal of a brand new home with modern fixtures, a full warranty, and no renovation work required. However, once the property is lived in and no longer "new," that premium tends to diminish.

This does not mean you will automatically make a loss. In a rising market, underlying house price growth can offset or exceed the premium erosion. The longer you have owned the property, the more likely the market has moved in your favour. According to data from the ONS House Price Index, average UK house prices have risen by approximately 20% over the past five years, which in many cases more than compensates for the new build premium.

When preparing to sell, get an independent valuation rather than relying on the original purchase price. Your estate agent will assess what comparable properties on your development and in the wider area have sold for recently, giving you a realistic asking price.

Transferring your new build warranty

Most new build homes in England and Wales come with a 10-year structural warranty, the most common being the NHBC Buildmark policy. This warranty transfers automatically to the new owner when you sell. You do not need to apply for a transfer or pay a fee. The buyer simply inherits the remaining cover for the life of the policy.

The Buildmark warranty is structured in two parts:

• Years 1 to 2 (builder warranty period): The developer is responsible for fixing defects that breach NHBC standards. This covers items like faulty plumbing, poor plastering, or defective windows.
• Years 3 to 10 (NHBC insurance period): NHBC provides insurance cover for structural defects, including damage caused by defects in the foundations, load-bearing walls, roof structure, and other key components.

If your property has a warranty from an alternative provider such as LABC Warranty, Premier Guarantee, or Checkmate, the same principle applies: the cover transfers with the property. The critical point is that your buyer's mortgage lender will almost certainly require a recognised warranty to be in place. Check the UK Finance Lenders' Handbook if you are unsure whether your warranty is accepted.

What warranty providers cover new builds

Keep your warranty certificate and any claims correspondence safe. If you have lost the documentation, contact your warranty provider to request a replacement confirmation of cover before you list.

Dealing with snagging before you sell

Snagging refers to minor defects and unfinished items in a new build property. Common snags include poorly fitted doors, uneven plastering, paint imperfections, gaps in sealant, and minor plumbing issues. While these are normal in new construction, leaving them unresolved when you come to sell can create problems.

If you are still within the two-year builder warranty period, the developer is contractually obliged to fix defects that breach the warranty standards. Under the Consumer Code for Home Builders, developers must have a clear complaints and after-sales process. Push for all outstanding snags to be completed before you market the property. Document everything in writing and keep records of reported defects and completed repairs.

If you are past the two-year period, NHBC or your warranty provider will only cover structural defects, not cosmetic snags. In that case, consider addressing any visible issues yourself before viewings. Buyers expect a new build to be in excellent condition, and unresolved snags can suggest the property has not been well maintained. Being transparent about what has been fixed is important. Our guide on what to disclose when selling explains your obligations in detail.

Documents your buyer's solicitor will expect

Selling a new build involves more paperwork than a typical resale. Your buyer's solicitor will raise specific enquiries about warranties, building control, and developer obligations. Gathering these documents early will reduce delays during conveyancing.

• New build warranty certificate (NHBC Buildmark, LABC Warranty, or equivalent) including the policy number and expiry date.
• Building regulations completion certificate confirming the property was signed off by building control. If you do not have this, see our guide on what to do without a building regulations certificate.
• Planning permission documentation for the development, including any conditions attached to the consent.
• Energy Performance Certificate (EPC). New builds are typically rated A or B. If your certificate has expired or you cannot locate it, our guide on EPC costs and ratings explains how to obtain a new one.
• Snagging reports and evidence of completed repairs, especially any correspondence with the developer.
• Details of estate management charges including the current annual amount, what it covers, and the management company's contact details.
• Information about restrictive covenants in the title deeds, such as restrictions on alterations, subletting, or running a business.
• Appliance manuals and manufacturer warranties for items such as the boiler, hob, oven, and extractor fan.

Having these ready before you accept an offer will speed up the process considerably. If you want a full checklist, see our guide on how to sell your house fast for tips on preparing everything upfront.

Estate management charges and service charges

Many new build developments have ongoing estate management charges (sometimes called estate rent charges or maintenance fees) that fund the upkeep of communal areas. These can cover road maintenance, landscaping, lighting, play areas, and drainage systems that have not been adopted by the local authority.

You must disclose these charges when selling. They are typically addressed on the TA6 property information form and in your solicitor's replies to pre-contract enquiries. Your buyer will want to know:

• The current annual charge and how it is calculated.
• Whether the charge can increase and if so, by how much.
• What the charge covers (and does not cover).
• Who the management company is and whether residents have any say in its decisions.
• Whether there are any outstanding or anticipated large payments.

Estate charges have become a significant concern for buyers in recent years, with some new build estates charging several hundred pounds per year. Being upfront about these costs and providing clear documentation will help avoid delays and build trust with your buyer.

Selling a new build bought with Help to Buy

If you used the Help to Buy equity loan to purchase your new build, you must repay the loan on or before completion of your sale. The amount owed is a percentage of the current market value, not the original purchase price. For example, if you borrowed a 20% equity loan on a property you bought for £300,000, and the property is now worth £330,000, you owe 20% of £330,000, which is £66,000.

The repayment process involves several steps:

1. Instruct a valuer from the approved list provided by Homes England (or its successor) to produce a current market valuation.
2. Submit the valuation to the Help to Buy administrator and request a redemption figure.
3. Your solicitor arranges repayment from the sale proceeds on completion day, alongside your mortgage redemption.

This process can take several weeks, so start early. Factor the equity loan repayment into your net proceeds calculation to avoid surprises. Our conveyancing costs breakdown can help you map out all the costs involved.

Restrictive covenants and resale clauses

New build title deeds frequently contain restrictive covenants imposed by the original developer. Common examples include restrictions on making external alterations without consent, prohibitions on running a business from the property, rules about parking commercial vehicles, and requirements to maintain the property to a certain standard.

Some developers also include clawback clauses (or overage provisions) that entitle them to a share of any increase in value if the buyer obtains planning permission for additional development. While these typically only affect larger plots, they can catch sellers off guard if not identified early.

Your buyer's solicitor will review the title carefully and raise enquiries about any covenants or unusual clauses. Being prepared to answer these quickly keeps the sale moving. Ask your own solicitor to flag any resale-specific provisions in your title deeds before you list.

Leasehold new builds: ground rent and lease terms

If your new build is leasehold, which is common for flats and was historically used for some new build houses, the lease terms will be scrutinised carefully by your buyer's solicitor and mortgage lender. The key issues to be aware of include:

• Ground rent: The Leasehold Reform (Ground Rent) Act 2022 capped ground rents on new leases granted from 30 June 2022 onwards to a peppercorn (effectively zero). However, if you purchased before this date, your lease may still contain a ground rent, potentially one that escalates. Ground rents above £250 per year (or £1,000 in London) can make the property an Assured Shorthold Tenancy under the Housing Act 1988, which causes serious problems for both buyers and lenders.
• Lease length: New builds are typically granted long leases of 125 to 999 years, so lease length is rarely a problem on resale. However, always confirm the remaining term.
• Service charges: Leasehold properties will have service charges in addition to any estate management fees. Provide the buyer with at least three years of service charge accounts.

If your lease has unfavourable terms, particularly escalating ground rents, take legal advice on whether a deed of variation or lease extension might improve the saleability of your property before you list.

Getting the best price for your new build

Selling a new build successfully depends on presenting the property's strengths while being realistic about resale pricing. Here are practical steps to maximise your sale price:

• Highlight the warranty. The remaining years of structural warranty cover are a genuine selling point, especially compared to older properties where buyers face unknown maintenance risks.
• Emphasise energy efficiency. New builds typically have high EPC ratings (A or B), which translates to lower energy bills. With energy costs a major concern for buyers, this is a strong advantage.
• Resolve all snags. A new build in immaculate condition with documented proof that all defects have been addressed commands confidence from buyers.
• Price realistically. Avoid anchoring to your original purchase price. Base your asking price on what comparable resales have achieved on your development and in the surrounding area.
• Prepare your paperwork early. Having all documents ready before you accept an offer signals professionalism and reduces the risk of delays or fall-throughs.

Common reasons new build sales fall through

New build resales can encounter specific problems that cause delays or collapses. The most common issues include:

• Missing warranty documentation: If you cannot provide the warranty certificate, the buyer's lender may refuse to proceed. Contact your warranty provider for a replacement well before listing.
• Unresolved snagging disputes: Ongoing disputes with the developer can concern buyers and their solicitors. Try to resolve or document the status of all defects before marketing.
• Estate charge concerns: Unexpectedly high or unclear estate management charges can deter buyers, particularly first-time buyers who may not have anticipated these costs.
• Help to Buy complications: Delays in obtaining a valuation or redemption figure from Homes England can hold up completion. Start the process as soon as you accept an offer.
• Unfavourable lease terms: Onerous ground rent clauses can make the property unmortgageable for some buyers, effectively removing a portion of your potential market.

Many of these issues can be prevented by thorough preparation. Getting your documents together, understanding your title restrictions, and being transparent about charges and obligations all contribute to a smoother transaction.

New build snagging: developer obligations when reselling

Snagging refers to defects or unfinished items in a new build that should have been completed before handover. When reselling a new build, understanding snagging obligations is essential because they directly affect what your buyer inherits and how smoothly the transaction proceeds.

If your property is still within the warranty defect period, usually the first two years for minor defects, the buyer inherits the right to have the original developer fix reported issues. This is known as the defect liability period, and the developer's obligation to remedy defects transfers to the new owner along with the warranty. Beyond the two-year defect period but within the 10-year structural warranty, only major structural defects are covered. Cosmetic snags and minor issues fall outside this protection once the initial two years have passed.

Common snagging issues that affect resale

Certain types of snags are more likely to concern buyers and their surveyors than others. The most common snagging items that can affect a new build resale include:

• Poorly fitted doors and windows: Gaps, draughts, or mechanisms that do not close properly are among the most frequently reported new build defects and are immediately noticeable during viewings.
• Unfinished landscaping: Developers sometimes leave external areas incomplete, particularly on phased developments where later plots are still under construction. Patchy turfing, missing fencing, and incomplete pathways can all lower the perceived quality of the property.
• Damp from construction moisture: New builds contain significant moisture from the construction process. If the property was not adequately dried out before handover, you may see condensation, mould growth, or damp patches. While this is often a drying-out issue rather than a structural defect, it can alarm buyers and their surveyors.
• Incomplete external works: Unfinished driveways, missing boundary treatments, or drainage that has not been properly connected can all create complications during the conveyancing process, as the buyer's solicitor will raise enquiries about their completion.

Preparing a snagging file for your buyer

One of the most effective things you can do as a seller is compile a comprehensive snagging file. This should include photographs of any defects reported to the developer, copies of all correspondence (emails, letters, and formal complaints), evidence of remedial work carried out, and any repair receipts for items you resolved yourself. A well-organised snagging file reassures the buyer that the property has been properly maintained and that issues were dealt with promptly. It also speeds up the enquiry process, as your buyer's solicitor will almost certainly ask about the defect history of the property.

If you are selling within the defect liability period, make sure your buyer understands that the developer remains obliged to fix reported issues for the remainder of that period. For more detail on how the NHBC warranty and builder obligations work, see our guide on NHBC certificates when selling.

More property type guides

• Selling a 1970s House
• Selling a Coach House or Mews Property
• Selling a Converted Commercial Property
• Selling a Freehold Flat
• Selling a House Near a Phone Mast
• Selling a House with a Swimming Pool
• Selling a House with an Annexe
• Selling a House with Outbuildings
• Selling a House with a Self-Contained Flat
• Selling a Houseboat in the UK
• Selling a Penthouse Flat
• Selling a Split Level Property
• Selling a Townhouse

Sources and further reading

• What does Buildmark cover? (NHBC)
• LABC Warranty (LABC)
• Consumer Code for Home Builders
• UK Finance Lenders' Handbook
• Leasehold Reform (Ground Rent) Act 2022 (legislation.gov.uk)
• UK House Price Index (ONS)
• Help to Buy: Equity Loan (GOV.UK)

Frequently asked questions