Power to the people

Owners of new homes will have a head start when they come to sell up and move on. From June 2007 an energy efficiency rating will have to be produced for every home put up for sale in England and Wales. As new houses and properties are, on average, four times more energy efficient than older properties, this will make it even easier in future to sell the attractions of a new house or other type of new property to a potential buyer.

The Government is introducing the compulsory energy rating for homes to help cut carbon dioxide emissions contributing to global warming. UK homes and properties account for more than a quarter of the country's CO2 emissions. With this in mind, UK property developers are keen to do their bit to help the environment when building a property development. New homes are well insulated which means they take less energy to heat. This in turn cuts the carbon emissions that come from the burning of fossil fuels for power generation.

The Energy Performance Certificate (EPC) will be part of the phased roll-out of Home Information Packs (Hips). The certificate will give sellers A to G ratings for their home's energy efficiency and carbon emissions, with A being the best. They will tell owners of new and older homes current average costs for heating, hot water and lighting in their property, as well as how to cut costs with energy efficiency measures.

The reports, prepared by qualified home inspectors, will advise consumers on which energy measures – ranging from thicker loft insulation right through to solar panels – could cut carbon emissions from their home and improve their energy rating.

Housing Minister Yvette Cooper said: "Given the growing challenge from climate change and rising energy costs, I think people should be entitled to this kind of information about the home they buy. You can get this kind of information on fridges and washing machines, so why not on a home where the emissions – and the savings – are so much greater?"

The HIP will also include a Home Condition Report, terms of sale and any search details. It is estimated the average cost of compiling the pack will be £600 to £700 plus VAT. The Government says most of this cost is not new and is being met at present by both sellers and buyers.

House sellers will also have to provide searches and title deeds when the energy efficiency ratings come into force, at a cost of around £150. Further information on the Home Information Pack programme is available at www.communities.gov.uk or call 020 7944 4400.

Buying New Property

Buying a brand new property, fitted with that luxury designer kitchen and en suite bathroom you've always wanted, can prove irresistible. On top of that new homes are generally cheaper to run than older properties, and they are built to a high standard (see our buyers' guide Why buy new for more information about the advantages).

But there are things you should bear in mind when thinking of purchasing a newly built home. The National House-Building Council (NHBC) has a checklist of things to look out for.

Our New Property Check List

  • Make sure the new property is protected by a good warranty provided by a reputable company. Most new homes are covered by the NHBC's 10-year Buildmark warranty and insurance but some property developers use other warranty providers and can give details of the guarantees in place. When a new property is not covered by a NHBC warranty or equivalent, ensure that the final building control certificate is available.
  • Check whether your builder is NHBC registered. You can do this by calling the NHBC on 01494 735363 or checking the register on the NHBC's website.
  • Check that the builder has a good national or local reputation.
  • Ask to look around homes the property developer has built before and chat to previous customers if possible.
  • Visit the site to see if it is tidy and well managed. This will give another clue about the attitude of the builder and his commitment to quality.
  • If you need a mortgage ask your lender at an early stage. Employ a solicitor (or licensed conveyancer).
  • Before taking possession of your home make sure you inspect it carefully.
  • Always wait until the home is fully completed before you move in, providing you are not buying it off plan. Once you have moved in check your new home again thoroughly.
  • Report any defect in writing to your builder and make sure you keep a copy.
  • If in dispute with your builder write to the appropriate NHBC office.

The Costs of a new Home

Before you set your heart on a new property, you should of course consider how much you can afford. You need to work out how much money you have yourself and how much you need to borrow to make your dream home purchase a reality. There are many different financial institutions, including building societies and banks, which offer loans for new homes and it pays to shop around for the best deal.

When deciding how much to spend on a property, you need to be sure you will have enough money to pay for all the additional costs as well, says The Citizens Advice Bureau.

These include:

  • Stamp Duty Land Tax. This is payable on properties costing more than �125,000 and is at least one per cent of the purchase price.
  • Land Registry fee.
  • Local authority search.
  • Fees, if any, charged by the mortgage lender or someone who arranges the mortgage, for example, a mortgage broker.
  • The buyer's solicitor's costs.
  • VAT.
  • Valuation fees.
  • Removal expenses.
  • Any final bills, for example, gas and electricity, from your present home which will have to be paid when you move.

For more information about Stamp Duty Land Tax, click here or ring the HM Revenue and Customs (HMRC) Stamp Office enquiry line on 0845 603 0135.

You should also take into account the running expenses of the new property you wish to buy. They may include:

  • Heating bills.
  • Council tax.
  • Water rates.
  • Ground rent, if the property is leasehold.
  • Service charges, if the property is a leasehold flat.
  • Insurance costs, including life insurance, buildings and contents insurance.

You will also have to pay a deposit on exchange of contracts, up to 10 per cent of the purchase price.

Location, Location

Finding new homes for sale by property developers in different parts of the country is quick and simple with our easy-to-use search facility. You may want to move to be nearer to relatives or need to relocate because of a new job. If it is an area you are unfamiliar with, there are many sources of information available to find out more about the place.

Local council websites are a good starting point. They contain a lot of information about the local area, such as plans for new property developments or transport links.

Other things you should think about when buying a new property is whether it is near to a main road or a pub, for example. Both are convenient, but also noisy. The same applies to a railway line in the vicinity and the house may be under a flight path.

Check out the local amenities, like shops, hospitals, and leisure facilities. Find out if the local schools are good and whether there is public transport. Look at the condition of other properties in the area. Bear in mind, that new home lets you put your very own 'stamp' or style on the new development, right from the beginning.

Other questions to ask yourself include:

  • Are there any development plans in the area?
  • What is the crime level like in the area?
  • What are the neighbours like? Are they noisy?
  • Has there ever been a dispute with the neighbours or anyone else living nearby.

Buying new Homes off-plan

Once you have identified where you want to live, and found out where new homes are for sale, it's time to see if you can get a bargain.

Property developers will often sell all or part of their development before it is completed. The practice is known as selling off plan and helps generate much needed revenue for the developer.

If you're prepared to buy before you see the finished product, you can get as much as 20 per cent off the asking price of a new property. Not only is it cheaper to buy a new property off plan, it can be a good investment because it might be worth much more by the time you move in.

Expect to pay the property developer between �500 and �1,000 to reserve a new homes that is being built. Beware, however, that you may have to wait longer than you anticipated to move in. Bad weather can delay the construction of new homes and there is usually no fixed date in the contract for completion.

When you do move in, you may also be disturbed by continuing work on the development, particularly from lorries bringing materials onto the site.

Your new property may also not be quite what you envisaged it would be. Property developers will make plans available to help you make your choice, but it can be difficult to visualise the dimensions of rooms, the size of the garden, or how close the other new homes on the development are to your house.

Part-exchange Your Property

Some new property developers offer part-exchange deals, enabling you to sell your existing old home to the developer in return for a discount on the price of the new property you wish to buy.

This guarantees you a cash buyer and you don't have the worry of having to sell your house on the open market, with all the complications that can bring, in terms of delays and possible last-minute hitches.

It also means you avoid estate agent and advertising costs and can move quickly without any hassle or delay. Furthermore, it gives you more money to spend on any new items you need and you can plan your move.

Happy new property and new home hunting�