New build homes
Initially, it’s crucial to recognise that newly constructed homes are often more expensive than older residences. This can impact upfront expenses, rental returns, and long-term property appreciation. However, this additional cost can be justified by including modern conveniences, improved energy efficiency, and lower maintenance expenses.
The quality of construction in new build homes holds significant importance. A well-constructed property results in reduced upkeep costs and enhances tenant satisfaction. Engaging with a reputable developer who ensures a top-notch build can safeguard your investment.
Newly constructed homes boast various advantages. Many adhere to higher energy efficiency standards, with government data revealing that 85% achieved an A or B rating. This translates to lower utility expenses for tenants, potentially saving over £2,000 annually. Such energy efficiency can drive tenant demand and justify premium rents, aligning with the growing popularity of sustainable living. New build homes often showcase contemporary designs, updated amenities, and the latest appliances, making them appealing to potential tenants.
The recent Minimum Energy Performance Bill update underscores the requirement for all buy-to-let properties to achieve a minimum Energy Performance Certificate (EPC) rating of C by 2028. Anticipating this legislation, investing in a new-build property that already meets these standards is an enticing prospect for investors, eliminating the need for additional upgrades.
Furthermore, certain builders offer incentives for property investors. Take Bovis, for instance, which provides a sale and leaseback scheme. This program ensures property investors a guaranteed rental income for a predetermined period, presenting an attractive hands-off investment opportunity with a secure income stream.
Considerations for New Build Homes Investments