Buying Off-plan: What you need to know

What does buying off-plan mean?

Buying a home off-plan means that you purchase the property before it has been completed. These types of property are usually sold before construction begins and can be at a more affordable price than their prebuilt counterparts. You can usually purchase an off-plan home with a smaller deposit, especially if you’re using help to buy.

What are the benefits of buying off-plan?

One of the biggest advantages of buying a property off-plan is that your new home could be worth considerably more than what you paid for it when you move in. With some developers, you can personalise your home with new fixtures, fittings, and interior décor before it’s even built.

When buying a property off-plan, popular schemes such as Help to Buy equity loans and the up and coming Starter Homes Initiative are available on new build properties, sometimes making them easier to purchase than older houses.

What do I need to do when buying off-plan?

Here is a list of things to consider when buying a home off-plan:


When finding the perfect location to buy your property, we recommend looking for the development first and then selecting the appropriate home of your choice.

There are a vast variety of new, residential developments that have many reasons why you should invest in them. Other things you will need to think about regarding the location of a property include:

  • Local Amenities
  • Job Opportunities
  • Local Community
  • Ofsted reports for local Schools
  • Traffic
  • Noise Pollution

Research the developer

It’s incredibly important to know about the developer when buying off-plan. Take a look at their portfolio of previous builds to give you an idea of the quality of the build.

You could also visit the developer’s other sites to see how they look and get a feel of what you are investing in.

Equity Growth

Looking at the equity growth (or capital growth) will be able to help you see if the investment is worth it or not.  If the home was purchased in 2018, but it isn’t due for completion until 2020, you would have seen the value of the property grow if the area had a strong capital growth.

Staged Payments

When it comes to buying a home off-plan, you will need to negotiate the price (if doing so) upfront and pay a small reservation fee.  This will allow you to make payments throughout the building process until it’s completed. By having staged payments, you will be able to manage and budget your property investment better.

Millgate Homes - Offplan properties

Speaking to a financial advisor

Before you think about investing in off-plan properties, it’s important to speak to a financial adviser. In most occasions, you will not be able to get a mortgage offer until 6 months before the completion date (depending on which lender you use).

A good financial adviser will be able to help you see how much can be borrowed, and when you can start the formal application process.

Where can I find properties to buy off-plan?

If you are looking for a brand new start in a luxury property, Millgate builds exceptional homes based in the South of England. We have over 30 years of experience developing large, exquisite homes in Berkshire, Surrey, Buckinghamshire, West Sussex, Kent and Oxfordshire.

If you are interested in buying a new luxury home in the South, you can visit the Millgate Homes and see their exquisite collection of homes.