Investing in UK Property: Resale vs. New Build

If you’re looking to invest in UK property, you might be wondering whether a new build or resale property is the right choice for you.

In this webinar, recorded in March 2025, we welcomed two industry experts from the Experts for Expats partner network to discuss the need-to-knows of both types of property investment, including:

• How to decide which option is right for you based on both your immediate needs and what you’re ultimately hoping to gain from the investment
• What the purchase process involves and how it can differ between the two property types
• Potential issues to be aware of when it comes to the purchase of each property type – from possible new build delays to the uncertainty of resale chains 
• Key considerations you’ll need to understand and think carefully about before committing to your chosen property type 

This article is a summary of the key points from the webinar. You can watch the full recording here:

What are the key factors to consider when deciding whether to purchase a new build or resale property? 

If you’re buying a new build property off-plan, you can often have early choice of house or apartment – and this might be an extremely important factor. For example, you might pick the lowest purchase price possible within a particular development, because you want to achieve the highest possible yield. Or, you might be emotionally attached to a certain apartment, because want to have a park view or a south-facing view.  

Developers will often offer discounts as an incentive to get a project off the ground, then increase prices when around 40-50% of properties are presold because they’ve proven demand. Therefore, if you can get in early to a scheme, especially in a high growth market, this can be an effective way to obtain a discounted price.

Additionally, if you’re buying off-plan this can be helpful in managing your cash flow, because you can often make staged payments over the course of the build. For example, you might pay 10% on exchange of contracts, then another 10% 12 months later for a slightly longer build. For someone who wants to invest in property now but might have the money coming in 6-12 months’ time – perhaps from selling a business – this is a way to enter the market early and pay the full purchase price later.

Another thing to consider with a new build, off-plan property is delayed completion. If you know the project is completing in one, two or three years’ time, you can look at the financial forecasts with the Bank of England and see whether there is more likely to be a favourable interest rate environment at the time a project is due to complete.

There is also always the risk of unforeseen issues and delays to construction with a new build. Resale properties on the other hand, don’t carry that risk. They can be income producing right away, because you don’t have to wait – potentially years – for a project to complete.

You may also be able to secure a resale property at a much lower price through a distressed seller – i.e. someone who is looking to sell their property quickly due to financial hardship, often at a lower price than market value.  

The choice to invest in a resale or new build is also often dictated by location. In growing regional cities such as Birmingham, Manchester, Leeds and Liverpool, the predominant housing stock in the city centres is new build. On the other hand, you might be able to find cheaper, high-yielding, resale properties in more suburban and traditionally residential areas.

Therefore, your choice of property type will depend on what your strategy is. If you're looking for high growth and a central location, new build might be the best choice for you. If you're looking for something income-producing, perhaps a safer investment, you might want to look at the resale market.

You’ll also want to consider whether you want an active or passive investment. Do you want to buy a house, renovate it and deal with builders? Many people don't. Lots of investors want a more passive investment – they want to purchase a turnkey property, set up a bank account in the UK, sit back and enjoy the rental income, then sell it in 5 to 20 years’ time.

While you might see a really good deal on a resale property that needs work, it’s important to ask yourself whether you actually have the resources and time to improve it. If you watch UK property programmes on TV, you might see people who have made a lot of money developing an older property. But project-managing renovations even from the UK can be difficult and time-consuming, requiring experience and skills. And managing things from overseas can be even tougher.

What does the purchase process look like for each property type?

Whether you’re buying a resale or new build property, the purchase process is similar. You’ll make your offer and agree a price, then there are a number of checks to be carried out, legal obligations to be fulfilled, then eventually completion and ownership.

Resale properties normally have a more complicated purchase process. You’ll find a property you like and make an offer, then there will be a negotiation between you and the seller. The seller will have a vendor, usually an estate agent, representing them. Negotiations will go back and forth between you and the agent, until you agree a price.

When both parties have agreed a price, you’ll then instruct a surveyor. There are different types of surveys that can be carried out on properties, varying from a basic condition report, to a home buyers report, to a full structural survey. If you’re buying a period property which is a bit older, it’s advisable to get a full structural survey done. While this is more expensive, it will look at the property in detail and identify potential issues such as wood worm, rot or damp as well as the condition of the roof and windows. This is all very important information to have, because if it turns out the property needs a lot of work done, you can go back to the agent and renegotiate the price. Alternatively, if the survey report is particularly bad, you may want to pull out of the purchase.

After the surveys are complete, if you're happy with the reports and choose to proceed, the next step is to appoint a solicitor to do the conveyancing. Conveyancing refers to the legal aspects of a property purchase which you can't do yourself, including carrying out all the necessary checks, paperwork and environmental searches. With resale, there is often more due diligence to be carried out by solicitors. For example, they will need to look at boundaries, any disputes with neighbours, local planning issues, etc., all of which is vital information to have before you invest.

Next, you’ll set a date for the exchange – this is when you will put your deposit down. At this point, the property purchase becomes a legally binding contract, and you’ll agree your completion date – this is when you get the keys and become the owner of the property.

Purchasing a new build is slightly simpler. Usually, you’ll find the property through a developer or agent, and it will be sold at a fixed price. There probably won’t be much room for negotiation, but you may find different prices are offered at different stages of the development. You’ll then put down your reservation fee, and the process continues in a similar way to a resale property. You’ll appoint a solicitor, you may need to obtain a valuation report if you’re getting a mortgage, then you’ll progress to exchange and completion.

With off-plan properties, there's often nothing to survey, as when you agree to purchase the property it may still be a construction site. In this case, you’ll choose your unit based on the information provided by the developers and there may be a show home you can go and view. You’ll then put down your reservation fee, get your agreement, appoint a solicitor, and they will check all the contracts and agreements for you. If you require lending, you’ll need to make sure your mortgage lender is happy with the fact you’re buying off-plan and that you're going to need funds at various stages of the development.

What are the potential issues that might arise during the purchase process, both for resale and new build properties?

With an off-plan, new build property, you’ll first have to lay down a reservation deposit which confirms you want to move ahead with the purchase. Typically, that reservation deposit is non-refundable – this is to protect the buyer and the developer from any associated costs incurred.

When the developer receives your holding deposit, they agree not to sell it to anyone else – even if that person were to offer more money. As a buyer, you need to make sure you've done all your due diligence up to this point. Typically, these deposits are around £3-5k which is a significant amount of money to lose if, for whatever reason, you change your mind.

There is usually quite a tight timeframe for exchanging contracts if you're buying a new build or off-plan property, which can be viewed as either a benefit or an issue. With a resale property, this process can drag on for 6-12 months and can be time consuming and painful. Whereas with a new build, you can potentially exchange contracts in 1-2 months. For some people that can be too small a time frame, as if you don't exchange in that period, you may lose your reservation deposit.

With an off-plan property, the balance on the property is due when a project completes. If you're a cash buyer, you need to make sure you've got all your money ready to be transferred from overseas. If you're a mortgage buyer, you need to make sure you’re speaking to a mortgage broker before you enter into the purchase process, because you need to make sure you're going to get the finance you need. As soon as you can, you’ll want to obtain an agreement in principle from your mortgage lender, which says that based on your credentials, they would give you a mortgage. This then gives you the confidence to move ahead.

Due diligence is always important, no matter which property type you’re buying. With a new build, your due diligence will be around the developer. Are they capable and reputable? Do they have professional funding in place?

While there is always some risk of new build projects not completing, with new developments you'll typically encounter most issues when the groundwork is being laid. If it’s a big project, developers will always do ground surveys, but they can miss things. For example, there might be blocks of concrete in the foundations which are expensive to remove, or there can be archaeologically significant finds which can delay schemes by years. Therefore, you might want to be wary of getting involved in a new scheme very early on – but as soon as the structure is off the ground, the risks are lower.

When it comes to resale properties, especially older properties, surveys are essential. Surveys can potentially incur some high costs, so you’ll need to decide which ones are essential and take these professional fees into consideration when budgeting.

If you’re purchasing a buy-to-let property, there may be a tenant in situ. This could be a great thing, because you’re buying with an income straight away. But you also need to do your due diligence here and question, are they a good tenant? If not, and you want vacant possession, you've got to go through the correct steps.

You will also need to ensure compliance for resale properties. For example, does it have the EWS1 form which assures lenders and buyers that there is safe cladding on the outside of the building? Have you got all the gas safety certificates from the property? Have you got the correct Energy Performance Certificate (EPC)? The government is looking to change EPCs to a minimum of grade C by 2028 for lettings, so you want to ensure that the property you're buying is compliant with current legislation.

With resale properties, vendors might be a bit less professional, and the conveyancing process can drag out. We would always recommend you find a reputable, independent solicitor for your conveyancing. If you go with a conveyancing firm that's dealing with tens of thousands of cases it might save you a few hundred pounds, but if something goes wrong, being able to speak to a human who genuinely cares is priceless.

It’s also advisable to find a specialist mortgage broker. As an expat or non-resident, high street banks likely won’t be the best lenders for you to go with.

Are there any further considerations to be aware of?

When it comes to choosing what property type to buy, ultimately it comes down to your budget and timing, personal circumstances and your level of risk.

For example, if you’re buying an off-plan property, you might have saved your deposit, you're planning on moving in and you're renting short term, which could be expensive, and the project keeps getting delayed, which means you end up paying more in rent. On the other hand, there are risks with resale properties, such as problems which only become apparent after purchase and mean that what looked like a good investment may turn out not to be.

With a new build, you might be paying a new build premium, but with that you’re getting all the guarantees that it's up to current standards and building regulations. This means if you’re renting it out, it is guaranteed to pass all the required checks and be safe and ready for tenants to move in.

Location and how this impacts future value may also be a big consideration for you. Off-plan properties might be sold in an up-and-coming area where property value will increase. In these cases, it’s always a good idea to look at past projects by the same developer to see how they have increased in value. Resale properties, on the other hand, might be in a more established area already which gives you a good an idea of potential value in the future.

Property type is also a consideration. If you're buying a traditional house, you might see good price gain because it’s likely to be more of an emotional purchase to an owner-occupier in future. With new build stock, you might find that the property price is closely correlated to the rental value. If rental increases are quite significant, the property price is also going to increase as well, because the next owner is going to get a good income from that property.