Buying a New-Build Home: What You Need to Know About Warranties, Snagging and Risks

Buying a new-build home can be exciting—but it also comes with unique legal and practical considerations that differ significantly from purchasing an existing property.

At JB Property Law, we regularly guide clients through new-build transactions, helping them understand the risks, avoid common pitfalls, and move forward with confidence.

“JB Property Law explained things we hadn’t even thought to ask about. Their guidance on our new-build purchase was invaluable.”— Recent Client, Cumbria

New-build home warranties, NHBC, and ‘Snagging’

Most new homes come with a 10-year warranty from providers such as NHBC or Premier Guarantee. However, it’s important to understand what these warranties actually cover.

The Three Stages of a Warranty:

1. Deposit Protection. Your deposit is protected if the developer becomes insolvent before completion.

2. Builder Warranty (Years 1–2) The developer is responsible for fixing defects during this period.

• You must deal directly with the builder

• Warranty providers usually do not intervene at this stage

• Disputes may require mediation or legal action

3. Structural Warranty (Years 3–10) The warranty provider covers major structural defects only, such as:

• Foundations

• Structural walls

• Drainage (below ground)

It does not cover:

• Cosmetic issues or “snagging”

• Fixtures, fittings, or finishes

• Electrical or plumbing faults

• Boundary or title issues

Importantly, warranties do not cover consequential losses, such as the cost of alternative accommodation.

Snagging: Why It Matters

It is common for new-build homes to have defects or unfinished items at handover. Because buyers are usually required to complete the purchase even if minor defects exist, it is essential to:

• Inspect the property carefully yourself

• Consider hiring a professional snagging inspector

A snagging report (typically £300–£500+) can identify issues, but:

• You will need to negotiate repairs directly with the developer

• Completion is unlikely to be delayed for minor defects

“We were advised to get a snagging report early—and it saved us a lot of hassle later.”— New-Build Buyer, Manchester

The Consumer Code for Home Builders - What You Should Know

Unlike buying goods such as cars or appliances, consumer protection for new-build homes is more limited.

The Consumer Code for Home Builders provides:

• Guidance on what to expect from developers

• A complaints process for service-related issues

However, it mainly focuses on sales and communication, not construction quality.

You can view the code here: www.consumercode.co.uk

Planning Permission

Your new home may be subject to planning conditions that pass to you as the new owner.

While we will provide documentation, it is important that you:

• Check the property complies with planning conditions

• Raise any concerns before exchange of contracts

As conveyancers, we do not visit the property, so your own checks are essential.

Roads, Drainage and Estate Management

Road Adoption

Ideally, estate roads are adopted by the local authority. However:

• Some roads are never adopted

• Maintenance may fall to homeowners or management companies

• Poorly maintained roads can affect property value and resale

Drainage and SuDS

Modern developments often include Sustainable Drainage Systems (SuDS).

These require ongoing maintenance to prevent flooding. Responsibility may fall to:

• A management company

• Property owners

If not properly managed, this can create long-term risks.

Management Companies

If your property includes shared areas:

• You may become part of a management company

• You should ensure it is properly run and compliant

Failure to manage these arrangements correctly can impact your ability to sell.

Plans, Specifications and “What You Actually Get”

New-build purchases—especially off-plan—carry risks around what is actually delivered.

Developers often reserve the right to make minor changes, including:

• Layouts

• Finishes

• Fixtures and fittings

You must:

• Check plans and specifications carefully

• Compare the finished property against what was promised

• Raise any discrepancies immediately

Verbal assurances from sales teams are not legally binding unless confirmed in writing.

Timescales and Exchange Pressure

Developers often require exchange of contracts within 28 days. This can be challenging because:

• Mortgage offers may take longer

• Linked sales may not align

There is also a risk of price increases if deadlines are missed.

Mortgages and Completion Risks

Mortgage offers for new-builds are usually subject to final inspection. If the lender’s surveyor is not satisfied:

• Funds may not be released

• You could still be contractually obliged to complete

This is a key risk when buying off-plan.

Completion Dates and Delays

New-build contracts typically use “notice to complete” rather than fixed dates.

This means:

• Completion may occur with as little as 10 days’ notice

• Build delays are common

• Developers are rarely liable for delays

If you are selling at the same time, you may need temporary accommodation.

Final Thoughts

New-build homes offer many benefits, but they also come with complexities that are often underestimated.

With award-winning expertise and strong local knowledge, JB Property Law is here to guide you through every stage of the process. Ensuring that you are informed, protected, and confident in your purchase.

“Professional, thorough, and always available when we needed them. We wouldn’t hesitate to recommend JB Property Law.”— New Home Client, Newcastle Upon Tyne