Buying your first new-build home in London is exciting but unfamiliar. This guide walks you through the journey end to end — from working out what you can afford to picking up the keys.
1. Work out your budget
Lenders typically offer around 4–4.5× your income, but your real budget depends on your deposit, credit profile and monthly outgoings. For a new build, plan for a deposit of at least 5–10%, plus money for legal fees, surveys and moving costs.
- •Deposit: usually 5–10% minimum (more improves your rate)
- •Get a mortgage Agreement in Principle before you view
- •Budget for solicitor fees, searches and stamp duty
2. Understand new-build buying
New builds are often sold off-plan (before completion). You reserve a specific plot, pay a reservation fee, then exchange contracts — usually within 21–28 days — with completion later when the home is built.
3. Reserve, exchange, complete
After reserving, your solicitor reviews the contract, lease (if leasehold) and warranties. You exchange with your deposit, then complete on the agreed date. New builds usually come with a 10-year structural warranty (e.g. NHBC Buildmark).
4. Schemes that can help
Help to Buy has ended, but first-time buyers may benefit from shared ownership, Deposit Unlock, or the Own New Rate Reducer on selected developments. Eligibility varies by developer and lender.
Key takeaways
- ✓Get an Agreement in Principle before viewing.
- ✓Factor in fees beyond the deposit (legal, survey, stamp duty).
- ✓Off-plan means reserving now and completing later — plan your finances around it.
- ✓Check the warranty and, for leasehold, the lease terms and charges.
This guide is general information, not legal, mortgage, tax or investment advice. Rules, rates and scheme availability change — confirm current details with a qualified adviser before acting.