Buying a new build property is fundamentally different from purchasing a second-hand home. There are different legal protections, unique warranties, specific builder obligations, and risks that don’t exist in traditional conveyancing. Understanding these differences is essential before you sign on the dotted line.
What Makes New Build Conveyancing Different?
- Builder contracts — you sign the builder’s standard form contract, not a negotiated agreement
- Structural warranties — new builds come with 10-year warranty protection (NHBC, LABC, or similar)
- Building Regulations compliance — the builder must provide completion certificates
- Defects period — typically 12 months post-completion where the builder fixes snagging issues
- Builder insolvency risk — if the builder goes bust mid-build, your purchase could be at risk
Understanding New Build Warranties
NHBC Warranty (National House Building Council)
The most common warranty in England, used by over 80% of UK builders.
- Years 1–2 (Defects period): Builder is responsible for all defects and snagging. NHBC backs the builder’s obligation.
- Years 2–10: NHBC covers structural defects (not cosmetic issues). If the builder goes bust, NHBC steps in up to coverage limits.
Important limitations: Only covers structural defects, not design flaws or cosmetic issues. Coverage limits apply (typically £20,000–£100,000 depending on property value). Excludes wear and tear. Transferable to future buyers.
LABC & PREMIER Warranties
Alternatives to NHBC with similar coverage. LABC is administered by local councils. Some lenders have a preference for NHBC, so check with your mortgage lender if either of these is offered instead.
Warranty Reality Check
The warranty is not home insurance. It protects against structural defects, not builder negligence, design flaws, or features promised verbally. A snagging issue (paint marks, misaligned doors) is covered during year 1. A design flaw that makes the property unsuitable is not.
The Defects Period: Year 1 Is Critical
During the first 12 months you should report defects as you find them — don’t wait until month 11. Document everything with photos and keep a running list. Builders are more responsive to early reports and prefer fixing issues before the defects period closes.
The key rule: Report issues in writing before the 12-month mark. After year 1, the builder has no obligation to fix, and warranty coverage narrows to structural issues only.
Building Regulations & Completion Certificates
The builder must provide Building Regulations Completion Certificates proving the work complies with legal standards. Your conveyancer must confirm these are in place before you complete — covering all work including structural, electrical, plumbing, kitchens, and bathrooms. If certificates are missing, do not complete until they are provided. Properties without them can be unsellable or unmortgageable.
Builder Contract Terms: Watch Out For These
Key Clauses to Understand
- Contingency dates: The builder can typically delay completion by 90–180 days. Your mortgage offer has an expiry date — if completion is delayed beyond it, you may need a new offer.
- Retention clauses: The developer may retain 5–10% of the purchase price for 12 months to guarantee you can enforce repairs. Don’t accept the property without formally recording defects during this window.
- Limited remedies: Many contracts restrict your ability to claim damages if the builder defaults. You’re often confined to warranty claims rather than legal action.
- Forfeiture clauses: If you fail to complete on time, the builder can forfeit your deposit. You have less flexibility than in traditional sales.
Key Risks
- Builder insolvency: NHBC Buildmark insurance protects your deposit up to a limit if the builder fails before completion. Ensure this protection is in place before you pay anything.
- Delays: New builds often complete late. Build buffer time into your mortgage offer and any rental arrangements.
- Snagging: Most new builds have numerous small defects. Create a detailed snagging list early, photograph everything, and don’t accept the property until major issues are fixed.
New Build vs. Second-Hand: Key Differences
| Aspect | New Build | Second-Hand |
|---|---|---|
| Warranty | 10-year structural warranty | No warranty |
| Contract | Builder’s standard form; less negotiable | Negotiated; more flexible |
| Completion date | Builder can delay 90–180 days | Fixed at exchange |
| Searches | Environmental important; Local Authority less critical | Full suite standard |
| Survey | Less critical; mortgage valuation usually sufficient | Strongly recommended |
Typical New Build Timeline (2026)
- Week 1–2: Offer accepted, conveyancer instructed, deposit paid (typically 5–10%)
- Week 2–4: Contract review, NHBC details confirmed, mortgage application submitted
- Week 4–6: Mortgage offer received, completion certificates requested
- Week 6–10: Snagging identified and reported, builder makes repairs, completion date confirmed
- Week 10–12: Final checks, funds transferred, completion, Land Registry registration
- Year 1 (ongoing): Defects period — report all issues in writing to the builder within 12 months
At Ethical Conveyancing we specialise in new build purchases and understand the unique requirements of builder contracts, NHBC warranties, and defects management.
We’ll ensure your purchase is protected from start to finish and help you navigate the first 12 months so no defect deadline is missed.