NHBC Top Tips For Buying Off Plan 03/10/05

In today's housing market there is greater pressure than ever to secure that dream home. One way to do it is to buy "off plan" from a developer - that is, to reserve a house that has not yet been built. It is exciting to do but it can carry risks as well as benefits.

Off plan homes have all the attractions associated with new houses. Freshly decorated rooms need only minimal maintenance, and energy efficient heating systems and good insulation mean that running costs are low. Buying off plan avoids the threat of being gazumped and the house will be the end of the selling chain.

These advantages are important but house buyers should also be aware of both the advantages and potential risks that may be involved.

Potential risks

• Your contract will not usually include a fixed date for completion and you could find the house is finished later than expected. Uncontrollable events like bad weather can slow down the rate of construction.
• You may be buying a product you have not seen, can you be sure you will like it?
• It might be difficult to visualise dimensions such as room sizes, garden size or proximity to neighbouring houses.
• As an occupant in a new development you may be disturbed as building work continues on the site.
• During construction the roads will not be made up properly and there could be heavy lorries and machinery on them.
• Remember to ask the builder or site staff about how long it will take to complete the house and, if the development is in the early stages, find out when the site will be finished.

Advantages

• Buying off plan is quick, there is no need to view different properties, just visit the site office to see the plans.
• The value of the property can increase even before you move in.
• If the house is registered with NHBC it will be protected by NHBC's ten-year Buildmark Cover for new homes
• After putting down a reservation fee you have longer to arrange a mortgage.
• You can have the satisfaction of watching your house being built.

ends

Notes to Editors: NHBC is the leading warranty and insurance provider for new homes in the UK. It was established nearly 70 years ago as a non-profit distributing company. NHBC's primary purpose is to help raise standards in the new house-building industry and provide consumer protection for new house buyers.

NHBC's ten-year 'Buildmark' warranty covers 85 % of homes built in the UK and has protected more than 6 million homes.

NHBC helps raise standards by:

• registering builders who agree to comply with NHBC's Rules and Standards
• setting and maintaining construction standards for new homes
• inspecting at key stages of construction
• providing 'Buildmark,' the most comprehensive warranty and insurance cover for homes in the UK
• offering building control services in England and Wales
• providing a range of services, including technical information, training, health and safety, engineering and energy rating services for new homes and housing-related sectors

ends