Is Buying a New Build Better Than Renovating an Old Property?

It is quite a dilemma for home buyers to decide between buying a new build house and investing in renovating an old one. If you plan to invest in the renovation of an old building, the upfront cost might be lower than purchasing a new one. However, you can’t say for sure how long the old building will last. It may have settlement issues or hidden structural damages, which might attract further renovation costs.

On the other hand, a new build home does not need immediate repairing. So, your return on investment for the property will be higher. After a few years, if you decide to sell it, you may get handsome returns.

In this blog, we discuss whether it is better to buy a new build home or invest in the renovation of an old building.

Cost Comparison: Upfront vs Long-Term Investment

Did You Know that if you are a first-time home buyer, then you can buy a house at least 30% off the market value? Under the First Homes scheme, the developers offer you the property after applying the discount to the property value. The property should not cost you more than £250,000, or if the property is in London, it should be under £420,000.

Moreover, you do not have to pay VAT on the purchase of new-build houses. The sale of such property is zero-rated, which means 0% VAT is included in the sales price.

On the other hand, if you renovate an existing property, you pay 20% VAT. Besides, you also have to consider the long-term investment and ROI for renovating the old building.

It seems that investing in a new build home is better than renovating an old one.

Energy Efficient Buildings Construction

The UK households are a great source of greenhouse gas emissions. However, the UK government is committed to achieving the net-zero target by 2030. So, Part L of the Building Regulations will now ensure that new build houses install clean heating systems, solar PV, and apply a fabric-first approach.

On the other hand, old buildings might still use fossil fuels to get hot water or for room heating. It does not align with the sustainability goal of the country.

Planning, Permissions, and Building Standards

You must get a Listed Building Consent (LBC) from the local planning authority to renovate an old building. It requires time and resources to apply for and get permission for building renovation. However, if you buy a new build home, the developer gets the planning permission to construct the new building. You don’t need to invest your time and resources in getting planning permission.

Moreover, you can get an NHBC (National House Building Policy) Buildmark warranty on new build homes. It is a 10-year insurance policy that covers newly built homes against construction and structural issues.

Lifestyle, Design Freedom, and Customisation

If you decide to purchase a new build home, you will have the opportunity to customise the house. You can install SMART technology or apply an open plan living approach for the house.

On the other hand, if you plan to renovate an old building, you may not be able to customise the design, but you can keep the traditional look of the property. The historic characteristic of the building’s architectural design can be considered valuable.

However, you will have to consider the structural condition of the building before you decide to maintain the aesthetic charm of the old building. If it is not structurally strong, renovating the building would be a waste of resources.

Resale Value and Market Appeal

New build homes may lose value over the years, but first-time buyers prefer buying one for its long-term value. On the contrary, period homes built before World War I in Oxford, Bath and other areas of London still hold value for their architectural features.

Needless to say, the resale value of the old houses determines how well it has been maintained. If sound quality construction materials are not used during the renovation, the building will not last for a long time.

Before investing in the renovation of an old building, remember that buyers are looking for low-maintenance and energy-efficient homes in 2025. If your renovation approach does not follow sustainable practices like fabric first and others, the new customers might not prefer it.

Conclusion

It is better to invest in a new build home, rather than investing in the renovation of an old building. New buildings will not decay or be damaged within years, but old buildings might. Moreover, you can get a new house at a discounted rate, and it can also be VAT-free.

So, why invest in renovation when you can purchase a new build home at a discounted price? Invest in a new build house today! Get in touch with New Build Contractor to build a new house or building.