10 Aug by Amy Jackson

New Builds Property Investments

A Popular Property Investment

New build properties are some of the most popular types of property investment, with more regeneration and exciting developments hitting the UK year after year. Some of the major UK property investment hotspots offer plenty of opportunity for those seeking new build investments, with a wide range of Liverpool and Manchester new builds. But is buying a new build a good investment? And what should buy to let investors know before selecting their new build property?

Find your Ideal Investment Property

Start Search

About New Builds

The New Build Market

The new-build market in the UK is thriving, with Manchester and Liverpool property investment leading the way when it comes to new properties. Construction of new builds had reached its highest level in ten years as of 2018. The number of new build homes that have been built between 2014 and 2015 also grew by 25%, and the new-build market is showing no signs of slowing down.

New build properties are definitely capturing the attention of a large number of first-time buyers and buy to let investors alike. A study by Sell House Fast, an online estate agent, identified that new build property has seen a 16% year on year growth with around 163,250 new homes completed across England by the end of 2017.

New Build Property Investment New Build Property Investment

Why Invest In New Builds?

So we know that new builds are increasingly popular in the UK, with plans for more and more developments over the next few years, but is buying a new build a good investment? With so many new builds dominating the property market as of late, it’s easier than ever to get involved with a buy to let new build investment.

One of the major benefits of newer properties is that new builds are a lot less likely to suffer from maintenance issues than period properties. Building regulations for new properties are stronger and more reliable than they were in the past, making newly built houses and apartments a good option for investors thinking in the long term. The longer a property lasts without the investor having to pay for repairs and general maintenance, the better.

Tenants are often drawn to new build properties for this same reason, preferring to move into a property with perfect facilities and decor. A lot of tenants such as young professionals or students don’t want to spend their time redecorating a dated apartment or having to deal with old and draughty windows in the Winter. When a listing for a shiny new property with modern interiors and impressive fixtures is available, these types of tenants are often the first to snap it up.

New Build Property Investment New Build Property Investment

Another reason that new build properties are often popular with tenants is the potential for savings. New builds are known to have better energy efficiency than older properties and are developed using the most innovative and environmentally friendly materials. Energy Performance Certificates (EPCs) are an essential element of UK homes, with A being the highest rating and G being the lowest.

The higher the EPC rating, the lower your energy costs will be, which is a quality every tenant and homeowner wants. Over 96% of new build properties are rated between A-C, whereas just 2% of period properties fall between these figures.

This high level of energy efficiency means that running a new build property is significantly more affordable than others, saving an average of around £624 a year and £52 a month on energy bills. The fact that new builds are so well made compared to older buildings can also make them warmer and leave less need for the tenant to turn on the heating, which naturally contributes to lower household bills.

What About Off Plan?

A large majority of new build property investments fall under the off-plan category. Off-plan properties are homes that are still in the development stage, or for which development plans are in place but haven’t yet begun. These types of new builds come with a wide range of advantages, both for tenants and investors.

With off-plan properties, developers are known to offer the properties at a lower price as a way to attract investors. There can also be a longer time frame for a buyer to pay the full amount for the property, with investors often only paying a deposit and the remaining percentage once the property is finished. Those investing in off-plan can also expect to receive a 10-year warranty on their property.

Another big benefit of investing in off-plan property is the big potential for capital growth. There’s often the chance that off-plan properties could increase in value before even being completed, especially if it’s being developed in an area that has a lot of capital growth potential.

Properties at RWinvest, such as Merchant’s Wharf in Manchester, are developed in UK property hotspots. This means that there’s a high likelihood of your off-plan property increasing in value by the time it’s ready.

Lastly, off-plan properties give investors more freedom when selecting their property. For instance, if investing in a property within a new block of apartments, investors can choose the unit with the best size, most attractive layout, and most impressive city views. This is often one of the best ways to invest in property.

Interested in finding out more about Liverpool development and new build homes in Liverpool with RW Invest? Contact us today and one of our property experts will advise you and tell you more about opportunities to invest in new builds in Manchester and Liverpool.

RWinvest

New Build Tips

What do we offer?

buildings

Hands Off
Investments

View More

price

Below Market
Value prices

View More

growth

High Rental
Returns

View More

growth icon

Potential for
Capital Appreciation

View More

3 Units Remaining

The Summit

Stylish Baltic Triangle Living

Liverpool Prices from £139,950

Assured 7% NET Rental Yields

15-20% Below Market Value

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

10% Deposit

Off Market Manchester Apartments

Premium Residential Investment

Manchester Prices from £219,112

5.5% NET Rental Return

10% Deposit Required