Savills Portugal

Almost half of first-time buyers who secured a mortgage last year were helped financially by their parents. The so-called Bank of Mum and Dad contributed a total of £8.8 billion towards properties bought by their children, a figure that has increased in a stringent mortgage market that has particularly affected the higher loan-to-value (LTV) purchases. According to our latest analysis, the proportion of first-time buyers turning to their families for support will increase to nearer a third by the end of 2023.

In today’s tougher economic climate there are good reasons why parents will choose to help their children buy a new build property.

Certainty The prospect of buying a home can be daunting, but particularly so for those who have not bought before. With a new build home there is a greater degree of certainly as there is a limited chain. The reservation fee secures the property as long as you exchange within the time parameters agreed. Indeed, developers have to accord to the House Builders Code of Conduct which sets out strict rules. And for additional peace of mind, there are no survey issues to contend with.

Energy efficiency and lower carbon footprint The cost of energy is on the minds of many potential home-buyers. In our latest client survey carried out in December 2022, 79 per cent of respondents said that the prospective energy consumption of their next property has become more important.

The good news for buyers of new build homes is that annual ‘core’ energy costs (lighting, heating and hot water) are on average around half those of second-hand properties in England and Wales, while in Scotland there’s an average saving of more than a quarter. Many young buyers will be comforted to know that, because housebuilders have to meet sustainability standards, their properties are not only more cost efficient, but have a lower carbon footprint too.

Decoration Once a deposit has been gathered, and money for fees and taxes paid, there may be little left over for decoration. A new home provides a great blank canvas, removing the need to live with previous owners’ décor choices. If a property is reserved early within a development, there is a chance you will be able to have input into colour schemes and fixtures and fittings. And any outdoor space is often landscaped, so there is no need to spend at the garden centre either.

Maintenance The well reported rising cost of materials and long waiting times to have work done is much less applicable to new home buyers. Everything from heat, light, plumbing and glazing should be turn-key ready, minimising the need for general repair and maintenance work.

Warranties Once the keys have been handed over, the new owner of the house and the agent should embark on a final snagging tour of the property to note any small niggles. These will then be put right by the developer. Ongoing repair and maintenance costs and stress shouldn't be an issue either. New build properties come with the reassurance of a 10-year warranty from an organisation like the National House Building Council (NHBC) or similar.

These six new build developments are ideal for first time buyers: