For future-fit investment, time to trust new builds
When you consider the pros of buying an older home, a few common phrases crop up again and again – “character”, “period features”, etc. But when you’re buying to let, these matter far less than words like “sustainable income”, and “legally compliant”. In fact, if you’re a property investor, old builds could soon be old news.
Because incoming legislation looks set to put new builds higher on every property investor’s agenda in the coming years. But it’s not just legislation that makes new-build investing an attractive option – whether it’s your first property, or your latest. Here are three reasons to consider making your next property a new build:
1. Incoming legislation
New legislation is coming. And, although it’s not been formally announced yet, it looks like all UK rental properties will need to have an EPC rating of at least C from 2025.
In the UK, a property’s EPC rating measures its energy efficiency. But most older properties are at D, E, or even F – miles away from being legally compliant. And it’s likely to cost thousands to make up the gap.
Whether it’s replacing low-quality insulation, single-glazed windows, or inefficient heating, any investor looking at old-builds today could be in for a big bill down the line. Data from Habito suggests that it’ll cost over £6,400 to raise your average small-medium terraced house from a D rating to a C. Larger homes could end up spending over £12,500. And that’s before you consider lost rent – the extent of any renovation works might mean your property goes untenanted for weeks or months.
New-builds, on the other hand, are often already compliant. This small fact future-proofs your investment, and could end up saving you thousands.
2. High standard of upkeep
With old-build properties, maintenance is usually the responsibility of the tenant. That means they can quickly fall into disrepair, eating into their resale value (and adding to the average landlord’s long list of worries!).
Most new-build apartments, on the other hand, are professionally managed. That means there’s always someone dedicated to keeping the property in great condition, and protecting your investment’s resale value.
But that high standard of upkeep doesn’t just help when it comes to selling up. It also guarantees more regular income. Picture the scene: you’re a potential tenant, choosing between two properties. Option one is a well-kept, presentable new-build. The other, an old-build in need of some renovation before it’ll even feel habitable. Which would you choose?
Probably option one. The point is that a new-build investment, in the right place, will likely enjoy shorter gaps between tenants, and greater rental income overall.
3. Equal costs
The term “new-build” might conjure images of all sorts of hidden costs in your mind – ground rents, service charges, etc. And you are likely to need to pay these. But, as we’ve said, there’s a good chance you’ll spend thousands more maintaining an old-build and making it compliant ahead of 2025.
And here’s some good news to finish: through GetGround’s partners, you can get discounted property management fees. While you’d usually expect to pay 12% of rental income each month to manage a new-build, we’ve cut it down to 8%.
New-build means no limits on your investment. Book a free 15-minute consultation with one of our property experts, and find out if they’re right for you and your goals.
This is for your information only – you shouldn't view this as legal advice, tax advice, investment advice, or any advice at all. While we've tried to make sure this information is accurate and up to date, things can change, so it shouldn't be viewed as totally comprehensive. GetGround always recommends you seek out independent advice before making any investment decisions.
