Move-or-improve dilemma deepens

Energy efficiency is built into new homes, but tax take makes renovation an effective option. Anna Dove looks at the choices

Countless arguments could be made both for and against buying a new build. Depending on the size, scale and location of the development, buyers may feel there’s little to set their home apart from neighbouring properties, especially where a development is comprised of standard house types.

With the Scottish Government’s target set at building 50,000 new affordable homes by 2021, the onus is on developers – large and small – to continue to bring innovative projects to the market.

On the other hand, the trend for open-plan living spaces might not suit everyone, or buyers may simply prefer the characterful quirks and traditional features of an older home.

But when buying brand new, having the ability to move straight into an energyefficient home that has been finished to suit your every requirement is undoubtedly a perk.

Research carried out by industry body Homes for Scotland has found the cost of upgrading an older property to the same standard as a new-build home could be as much as £50,000.

The final figure takes into account the hundreds of pounds that can be saved on energy bills by living in a new, energy-efficient home. It also considers the fresh fixtures and fittings that come as standard.

“Whether you are starting out on the housing ladder, upgrading with a growing family or downsizing after children have left the nest, the new build market offers the widest possible range of options to suit every stage of your housing journey,” says Nicola Barclay, chief executive of Homes for Scotland.

“New homes also offer important benefits secondhand homes simply can’t match.

“As well as being built to suit modern lifestyle requirements and providing the peace of mind of a tenyear warranty and protection

Upgrading an older property to new build standards can cost as much as £50,000 of the Consumer Code for Home Builders, they can also help save buyers a lot of money and stressful upgrading.”

New-build savings aside, however, homeowners in Scotland are increasingly deliberating – hesitating, even – over buying somewhere new due to Land & Buildings Transaction Tax (LBTT). Many are opting instead to bite the bullet and upgrade their existing property, despite the costs involved in doing so.

The latest Scottish market report from the Council of Mortgage Lenders found that while first-time buyer activity has increased by around a quarter on the same period last year, there has been a reduction in home mover lending.

Barclay says the annual fall in home mover lending raises concerns: “This would appear to underline our concerns regarding the impact of the LBTT with feedback from our members continuing to suggest that potential buyers of homes in higher bands are deferring the decision to move because of the additional sums payable compared to the old Stamp Duty system.

“We will continue to monitor this market activity and share any ongoing concerns with the Scottish Government.” n