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New Builds vs Older Homes Everything you need to know

Oct 27, 2025
Abbey View
Deciding between a new build vs an old house is an important first step in your homebuying journey. Our comprehensive guide breaks down everything you need to know to help you make the right choice, including the pros and cons of buying each home. Read on to learn more. 

What is the difference between new builds and older homes?

Below, we’ve clarified the differences between a new build and an older property. 
 

What is a new build?

A new build is a property which has been constructed within the last 1 to 2 years and has not been lived in before. They’re typically sold by developers and are built to meet the latest building regulations and energy standards. 
 

What counts as an older home?

Older homes are properties that have been previously owned and lived in. While they may have more character, they can show signs of wear and tear from previous owners. 
 

Key differences in ownership types 

Most new builds are sold as freehold, meaning you own the property and the land it stands on. However, some can be leasehold, usually if they’re flats or properties on managed estates. This means you’d own the property for a fixed period, but not the land. 
 
Older homes can be either freehold or leasehold. Always check the ownership structure, as leasehold properties come with ground rent and service charges that may increase over time. 
 

Pros and cons of buying a new build

If you’re wondering, ‘should I buy a new build?’, we’ve broken down the key things to consider and the main advantages of buying a new home in the table below:
 Feature   Benefits   Considerations 
 Energy efficiency   Lower energy bills due to better insulation, double-glazing and efficient heating systems   May need future upgrades for top-tier eco performance 
 Maintenance 
 
  Likely fewer repairs will be needed as everything is brand new, plus the house is protected by a 10-year NHBC warranty 
  Build quality varies between developers, so ensure you’ve researched thoroughly 
 Customisation options   Subject to the developer, you can choose finishes, layouts and fittings before moving in   Limited choice if the build is already underway 
 Buying process   No property chain means a smoother, quicker purchase  Possible delays with construction timelines 
 Space  New build layouts often maximise space efficiently   May feel more compact than older homes, and the outdoor space could be limited 

Pros and cons of buying an older home

Here are the main things to consider if you’re thinking about buying an older property: 

 Feature   Benefits   Considerations 
 Renovation potential and value growth   There is often more scope to extend, renovate and increase the property’s value over time   Renovations can be costly, time-consuming and may need planning permission 
 Space   Older homes are often built on larger plots with spacious rooms and outdoor areas  These areas may need updating to suit modern lifestyles or layouts 
 Character   The property may have more character with period features and architecture   May have inefficient heating, poor insulation and outdated plumbing or electrics. Expect higher energy bills and ongoing maintenance costs 
 Buying process   More room for negotiation on the asking price   Possible delays due to property chains 

 

Comparing costs and value over time

It’s important to compare the up-front costs of your chosen property with the long-term financial commitments. While you may be able to afford a property initially, you’ll need to factor in ongoing fees, as well as its resale value when you decide to move. 
 

Buying price vs long-term costs 

New builds may cost slightly more initially, but lower running costs can offset this. Energy-efficient features mean cheaper monthly bills compared to older properties with poor insulation and outdated heating systems. 

Older homes may seem better value at first, but factor in potential renovation costs, urgent repairs and higher energy bills. Issues like damp or structural problems can quickly add up. 

Resale value and market trends for new builds vs old houses in the UK

New builds typically appreciate more slowly in the first few years as the ‘new build premium’ wears off. However, recent market trends show this gap narrowing, particularly for well-located developments with good build quality. 
 
Older homes in established neighbourhoods usually hold their value more steadily and can appreciate faster, especially Victorian and Edwardian properties with period features. However, homes needing significant modernisation may struggle to attract buyers unless priced appropriately. 
 

Which one might be right for you

Here are some key things to consider when deciding between a new build and an older property. 
 

What matters most to you? 

Consider your priorities carefully. If low maintenance, energy efficiency and modern living are important, a new build may suit you best. If you value character, larger spaces and renovation potential, an older home could be ideal. 
 
 Think about whether you want move-in-ready convenience or if you’d rather put your own stamp on a property over time. 

Consider your personal timeline 

How long you plan to own the property matters significantly. If you’re planning to stay for 5 years or less, the slower initial appreciation of new builds could work against you. For longer-term ownership, both options can perform well, with new builds benefiting from lower running costs and older homes from established neighbourhood appreciation.
 
Investment goals also play a role. Buy-to-let investors often prefer new builds for lower maintenance and tenant appeal, while those seeking renovation projects for profit typically target older properties with development potential.
 

Factor in your budget 

You’ll need to consider not just what you can afford to buy, but what you can afford to run and maintain. While older homes may have more room for negotiation, new builds are likely to save you money in the long term through lower bills and fewer repairs. 
 
New builds also often come with developer incentives that can make them more accessible for buyers. At Barratt Homes, we have a range of offers to help you, from our Own New–Rate Reducer Scheme to lower your mortgage rates and monthly payments, to schemes to assist with your deposit, such as Deposit Boost and Deposit Unlock. 
 
 
Ready to become a homeowner? Explore our new homes and start your homebuying journey today. 
 

 

 

 

 

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