In London, everyone knows that new homes and properties are the lifeblood of the modern housing market. To keep all the pipeline of properties flowing, the government works hard and comes up with billion-pound schemes to stimulate demands and attempt to free the planning process.
Even though there is a clear influx of newly built houses and properties cropping up in the property market, due to immense demand to house the increasing population in Britain, buyers turn to estate agents in London as people planning to buy for the first time. Along with homebuyers, buy-to-let homeowners and investors find this idea of investing in newly built properties an attractive prospect.
The Rise in Number of Properties in London
In different parts of London, the number of new developers and new homes is rising continuously. In other areas, the rate has increased to about 20% more when compared to the results of last year. Now, more Home Counties and areas bristle with construction cranes. This is a good thing, because new builds are becoming a popular trend with landlords for several reasons, and they offer other investment based opportunities when compared to the older properties.
Whether you plan to dip your toes in the property investment pool, or wish to climb the ladder, here is an insight into the top benefits of investing in a newly built property in London. Go through these, and it should help you to weigh all your options and manage it properly.
New Tenants Prefer New Homes
In several cases, properties newly built offer nearness and the right kind of activities that young renters would have in their lifestyle. As such, these developments only attract them. These help with better access to gyms, bars, restaurants, as well as other essential facilities that are important factors for several renters and homes newly built offer the right “must-have” features.
In terms of how tenants perceive this, most feel that renting a new London property will help to upgrade their lifestyle because compared to several post-war properties and old-style Victorian homes, these come with proper layouts and designs.
Considering this from a landlord’s perspective, newly built properties tend to rent for about 10-20% more compared to other types of properties. Although this premium may erode, when other larger developments emerge on stream, the supply will become higher than its demand. As such, it is important that you choose the location properly.
According to experienced estate agents in London, such as those at Yooodle, investing in a newly built home will take off the hassle of maintenance charges. With the minimal requirement of changes at the time of moving in, it will let people save. Routine retouching and little personalization will help to keep it in the best shape. As such, landlords will also be able to enjoy some relief of their investment, since it will require little repairs and sprucing. At the same time, first-time buyers will be able to ease themselves into their responsibilities of homeownership without worrying about the need for extensive redecorating.
Some homes also come with inbuilt appliances integrated like ovens, microwaves, induction, fridges, ovens, dishwashers, hobs, and more to make it a lot easier for tenants to be able to carry on with their life without the need to invest in heavy purchases.
In London, whether it’s an apartment or a house, newly built ones come with the NHBC guarantee (National House Building Council). This serves as a “Buildmark” offering people who make the investment in new properties protection against any errors related to construction errors for at least 10 years post its construction. This also helps to protect those that buy-off plan against builders that lose their deposits.
The Option of Incentives
The government will also help with equity loans, which would apply to newly built properties, giving first-time buyers the right opportunity to purchase their home with about 5% of deposit. Success with this scheme lets more brokers be independent and offer 95% loan to value mortgages.
Choosing a Better View
In addition to having the option to customize finishes, early buying of newly built homes through the help of estate agents in London will enable buyers to choose the view they prefer to have for their home. It offers more choice to buyers rather than choosing and waiting for a limited choice. Furthermore, with the existing property, buyers will be able to get what they need in terms of style and location, but other aspects may not be right for them, such as the amount of light, and the warmth it offers.
Regardless of whether this is your first time in the property market, if you wish to invest in a newly built home in London, you need to know that this is a smart decision you are making. In addition, you have to explore your options too and search for the best possible options in your area.