Buying off-plan means agreeing to buy a home before construction is complete. In some cases, building work may not have started when you reserve it.
You will usually choose the property using floor plans, specifications, computer-generated images and, where available, a show home. Reserving early may give you a wider choice of available homes or finishes, but you will be committing before you can inspect the completed property.
In a typical purchase in England, the agreement becomes legally binding when contracts are exchanged. Withdrawing after exchange may have financial or legal consequences. Your solicitor or conveyancer should explain when you will become legally committed and what the contract requires.
This guide focuses on buying an off-plan home in England.
Buying off-plan at a glance
- You reserve a home before construction is complete.
- You choose it using plans, specifications and other sales information.
- You may have a wider choice of available homes or finishes.
- The estimated completion timetable may change.
- Your mortgage offer may need to be extended or renewed.
- The property’s market value and a lender’s valuation may change before completion.
What does buying a home off-plan mean?
Buying off-plan involves choosing and reserving a property before it has been completed.
The information available to help you choose may include:
- Floor plans and architectural drawings
- The property specification
- Computer-generated images
- A site plan
- A show home or marketing suite
- Samples of materials and finishes
- Details of parking, storage and shared spaces
- Information about planned construction phases
These materials can show what is planned, but they may not all form part of the contract. Images might contain optional upgrades, furniture or decorative items that are not included in the purchase price.
Plans and measurements may also be subject to permitted changes or tolerances. Your solicitor or conveyancer can check the contractual plans, specification and any terms that allow changes during construction.
The organisation selling the home, the construction company, the managing agent and the warranty provider may be separate organisations. Check who is responsible at each stage and where you should direct questions or report problems.
If you are buying through Shared Ownership, eligibility and affordability requirements may apply. The sales team can explain the assessments required for the property you are considering.
Benefits of buying off-plan
A wider choice of available homes
Reserving earlier in a development may give you more opportunity to choose a home that suits your needs, subject to availability.
Depending on the development, you may be able to choose between different:
- Layouts
- Floors, if you are buying an apartment
- Positions within the development
- Outlooks
- Locations near parking, shared spaces or access points
Prices may differ between individual homes based on their size, position, specification and other features.
Options to personalise the property
Selected finishes or colour schemes may be available at some developments. These could include kitchen units, worktops, flooring or tiles.
The choices available will depend on the property and the stage construction has reached. Options may become more limited as building work progresses, and some upgrades may cost extra.
Ask for written details of the available options, prices and payment terms before making a selection.
A newly built home
Buying off-plan gives you a newly built property. The fixtures, fittings and finishes included will depend on the agreed specification, so check what is included as standard and whether any items or upgrades cost extra.
Check whether the property has previously been used as a show home. Items shown in a show home or marketing image may not be included in the sale.
Offers and incentives
Some developments may offer incentives, such as included appliances, upgraded finishes or a contribution towards selected costs.
Offers and eligibility conditions vary between developments and individual homes. Confirm any current incentive in writing and tell your lender and solicitor or conveyancer about it.
Compare the full purchase price, specification, mortgage requirements and ongoing costs rather than considering an incentive on its own.
Is buying off-plan cheaper?
Buying before construction is complete does not guarantee a lower price.
Prices vary between developments and individual properties. A home released during an early sales phase might have a different price from a similar property released later, but this does not show that either is cheaper than its market value.
When comparing suitable properties, consider:
- The purchase price
- The size and layout
- The agreed specification
- Fixtures and appliances included
- The position within the development
- Parking or storage
- Service charges or estate charges
- Shared Ownership rent, where applicable
- Any incentives
- The estimated cost of borrowing
Property prices can fall as well as rise. Base your decision on what you can afford at the agreed purchase price, rather than an assumed increase in value.
Risks of buying a home off-plan
The completion timetable may change
The date given when you reserve may be an estimated season, month or completion window rather than a confirmed moving date. Construction timetables can change.
A delay could affect:
- Your mortgage offer
- The sale of your current property
- Your current accommodation
- Removal or storage arrangements
- Temporary accommodation
- School, work or childcare plans
Ask how changes will be communicated. Your solicitor or conveyancer can explain what the contract says about delays, when completion is expected and any provisions covering a significant delay.
A change to the timetable could also affect your current accommodation or property sale. Check the relevant terms before making arrangements that may be difficult or expensive to change.
Your mortgage offer could expire
Your mortgage offer will have an expiry date. If construction takes longer than expected, the offer may expire before the property is ready.
You might need to request an extension or make another application. Your financial circumstances, interest rates or the lender’s criteria may have changed, so an extension or replacement offer is not guaranteed.
Check the expiry date when you receive the offer. Keep your lender or mortgage adviser informed if the estimated completion timetable or your financial circumstances change.
Read the Guinness Homes guide to choosing a mortgage.
The property’s value may change
The property’s market value and a lender’s valuation may rise or fall between exchange and completion.
A lower valuation could affect how much the lender is prepared to provide and whether you can proceed on the agreed terms. Discuss the effect with your lender or mortgage adviser and your solicitor or conveyancer.
Do not assume that you can withdraw without consequences. Your solicitor or conveyancer should explain when the purchase becomes legally binding and what the contract requires.
The completed property may differ from sales information
Show homes and computer-generated images can help you picture the property, but they may include upgraded finishes, furniture, landscaping or decorative features that are not part of the purchase.
The layout or dimensions may also differ within any variation permitted by the contract.
Ask your solicitor or conveyancer about the contractual information covering:
- The property plan
- The agreed specification
- Permitted changes or tolerances
- Parking and storage rights
- Access arrangements
- Boundaries
- Shared areas
- Leasehold or estate-management obligations
Ask for written confirmation of any feature that influences your decision to buy.
The development may still be under construction
If you buy during an early phase, building work may continue elsewhere on the development after you move in.
Later work could temporarily affect access, noise, traffic, views or the use of nearby areas. Plans for later phases may also change where the relevant permissions and contracts allow it.
Ask the sales team about future phases and how work could affect the property you are considering.
If a planned road, school, transport service or nearby development affects your decision, check the latest information published by the relevant local authority or public body. A proposal may change or may not proceed.
The property may have snagging items
A newly completed home may have minor defects or unfinished items, often known as snags.
Inspection and reporting arrangements vary between developments. Ask:
- Whether an inspection is available
- When it may take place
- Whether access conditions apply
- How reported items will be assessed
- Who is responsible for responding
- What happens if you disagree with the outcome
- Which reporting deadlines apply
If an inspection is available, record any visible items you want to raise through the development’s reporting process. Keep dated photographs and written records of anything you report.
Warranty cover has limits
Ask which structural warranty or insurance arrangements apply and when you will receive the relevant documents. Your solicitor or conveyancer can explain which information is needed before exchange as part of the legal work they have agreed to carry out.
Warranty arrangements may provide different types of protection at different stages. Check the policy supplied for the property to understand who is responsible, what is covered, how long each part of the cover lasts and which exclusions apply.
Check:
- Who provides the cover
- When it begins
- How long it lasts
- What it covers
- Which exclusions apply
- Whether an excess is payable
- How defects and claims must be reported
- Whether responsibilities change during the period of cover
A warranty does not cover every fault, snagging item or maintenance issue. Follow the reporting process and keep copies of your policy documents and correspondence.
Learn more about warranties on new-build homes.
How buying an off-plan home works
The order and requirements will depend on the development, the type of purchase and your circumstances.
1. Check your budget
Consider the full cost of buying and living in the property, not only the advertised price or estimated mortgage payment.
Possible costs include:
- A reservation fee
- A mortgage deposit
- Mortgage advice, arrangement or valuation fees
- Legal and conveyancing fees
- Stamp Duty Land Tax, where applicable
- Survey or inspection costs
- Removal and storage costs
- Furniture and appliances
- Buildings and contents insurance
- Council Tax and utilities
- Service charges or estate charges
- Shared Ownership rent, where applicable
Costs, taxes and mortgage rates can change. Check current information and ask the relevant qualified professional about costs that may apply to your purchase.
2. Research the property and development
Review the property’s plans, specification, position and estimated completion timetable.
Check practical details such as:
- Room sizes and storage
- Parking arrangements
- Cycle and bin storage
- Broadband availability
- Shared entrances and facilities
- Access to the property
- Ongoing charges
- Future construction phases
- Restrictions contained in the lease or transfer
- Responsibility for maintaining shared areas
You may also want to review current planning information about the surrounding area. Distinguish between development that has planning permission and proposals still subject to consultation, approval, funding or another decision.
3. Reserve the property
If you decide to proceed, you may be asked to sign a reservation agreement and pay a reservation fee.
Before paying, check:
- The amount of the fee
- How long the reservation lasts
- Whether the fee contributes towards the purchase
- When it may be refunded
- Whether deductions may be made
- The deadline for appointing a solicitor or conveyancer
- The expected exchange deadline
- What the agreement says about an unsuccessful mortgage application
- What it says about an unsuccessful eligibility or affordability assessment, where applicable
A reservation fee is not the same as a mortgage deposit. It may also be treated differently from any deposit required when contracts are exchanged.
Ask for a written breakdown of each payment, when it is due and the terms that apply.
A reservation agreement and an exchanged purchase contract serve different purposes. Read the reservation terms before signing, including the deadlines, payment terms and what happens if either party does not proceed. Your solicitor or conveyancer can explain when the purchase itself becomes legally binding.
4. Appoint a solicitor or conveyancer
Your solicitor or conveyancer will carry out the legal work covered by the terms of their appointment.
Depending on the property and the agreed scope of their work, this may include reviewing:
- The contract
- The property plan and title
- The lease or transfer
- The specification
- Property searches
- Parking, access and storage rights
- Service charges or estate charges
- Warranty arrangements
- Completion provisions
- Restrictions affecting the property
- Deposit arrangements
You may be given details of firms familiar with the development. Confirm the scope of the legal work directly with the firm you appoint and ask whether you need support from another suitably qualified professional.
Raise any questions before signing documents or exchanging contracts.
5. Apply for your mortgage
Tell your lender that the property is being bought off-plan and supply accurate information about:
- The estimated completion timetable
- The purchase price
- The property tenure
- Service charges or estate charges
- Shared Ownership rent, where applicable
- Any incentive offered
- The deposit available
- Your income and financial commitments
Keep your lender or mortgage adviser informed if your circumstances or the estimated completion timetable changes.
6. Review the documents and exchange contracts
Your solicitor or conveyancer will complete the legal work covered by their appointment and explain the contract and supporting documents.
They can also explain how contracts will be signed and exchanged, whether an exchange deposit is required and how it will be held or used.
In a typical purchase in England, the agreement becomes legally binding when contracts are exchanged. Withdrawing after exchange may have financial or legal consequences.
Before exchanging, make sure you understand:
- The property you have agreed to buy
- The agreed price and contractual specification
- The deposit arrangements
- The estimated completion period
- What the contract says about delays
- The ongoing charges
- The terms of the lease or transfer
- When you become legally committed
- What the contract requires from you
Check that your mortgage arrangements remain suitable for the expected timetable.
7. Follow construction progress
Ask how progress updates will be provided and who you should contact with questions.
If the estimated timetable changes, tell your solicitor or conveyancer and your lender or mortgage adviser. Check whether the revised timetable could affect your mortgage offer or other arrangements.
As completion approaches, ask about:
- The expected notice before completion
- Any mortgage or funding steps still required
- Insurance responsibilities
- Inspection or home-demonstration arrangements
- Money needed for completion
- Key-collection arrangements
- Documents you will receive
Arrangements vary between developments, so check the information supplied for the property you have agreed to buy.
8. Inspect the property and complete the purchase
If a home demonstration or inspection is offered, ask what it will cover. It may include the main controls and systems, safety information and the process for reporting problems.
Use the visit to record visible items you want to raise through the relevant reporting process. A demonstration or sales inspection is not necessarily a substitute for an independent professional inspection.
On completion, your solicitor or conveyancer will carry out the legal and financial steps covered by their appointment and confirm when the purchase has completed.
Check when and how the keys will be released. Ask which certificates, warranty documents, appliance instructions and contact details will be supplied.
Your off-plan reservation checklist
Before committing to an off-plan home, check:
- What is included in the purchase price
- Whether the plans, dimensions or specification can change
- The estimated completion period
- What the contract says about delays
- Which reservation fee and deposits may apply
- When payments may be refunded or deductions made
- Which rent, service charges or estate charges apply
- Which warranty or insurance arrangements cover the property
- How snagging items and defects will be assessed
- Who will manage the building or estate after completion
Keep copies of the information supplied. Ask your solicitor or conveyancer to check contractual terms that affect your decision.
Buying a Shared Ownership home off-plan
Some Shared Ownership homes can be reserved before construction is complete.
With Shared Ownership, you buy a share of the home and pay rent to the provider on the share you do not own. Service charges and estate charges may also apply.
Shared Ownership models and lease terms can differ. Check the Key Information Documents, personalised cost information and legal documents supplied for the individual property.
Eligibility and affordability requirements may apply. The sales team can explain the assessments required for the property you are considering.
Before reserving, check:
- The share you are buying
- The full market value of the property
- The rent payable on the remaining share
- How the rent may change
- The service charge and any estate charge
- The terms of the lease
- Repair and maintenance responsibilities
- The terms for buying more shares
- The process and conditions that apply if you later sell
The information and legal documents supplied for the property will set out the terms that apply.
Stamp Duty Land Tax may apply to a Shared Ownership purchase. The amount and payment options depend on the transaction and your circumstances.
Check the current Stamp Duty Land Tax guidance for Shared Ownership and discuss the position with your solicitor or tax adviser.
Read how to apply for a Guinness Homes Shared Ownership home.
Deciding whether to buy off-plan
Buying before construction is complete can involve a longer and less certain timetable than buying a completed property. It may suit you if you want a newly built home and are comfortable choosing it before you can inspect the finished property.
Before reserving, make sure you understand the full cost, what is included, the estimated construction timetable, your mortgage requirements and what the contract says about delays. Your solicitor or conveyancer should explain when you will become legally committed and what the contract requires.
Find an off-plan home
Explore available Shared Ownership and private sale homes from Guinness Homes.
This article provides general information about buying an off-plan home in England. It does not describe the terms of any individual property or purchase and is not legal, financial, mortgage or tax advice. Prices, costs, availability, specifications, timescales, eligibility requirements and buying arrangements vary. Check the information and contract documents for the home you are considering and obtain advice appropriate to your circumstances.
