Buying in a new development vs. a period conversion: Which is right for you?

When it comes to architecture, home layouts, character and lifestyle appeal, there is a world of difference between what a luxurious penthouse in Canary Wharf can offer and the prestige associated with a 19th-century Georgian townhouse across the leafy streets of Hampstead. Although they belong to two different timelines, London’s property market is diverse, and there are eager takers for both types of homes.

While it entirely depends on your budget, investment goals and personal property preferences, whether you should opt for a new build or a period property, you should know the pros and cons of both to make an informed decision.

What is the difference between new developments and period conversions?

From age to architectural style and even build quality, energy efficiency parameters and investor appeal, there are a lot of differences between the two types of housing.

Pros and cons of buying a new home in London

New homes come with a lot of perks, such as brand-new fittings, developer warranties, high energy efficiency, and other modern conveniences. However, there are limitations to how much external modification or customisation you can do, and you may also need to pay higher service charges for amenities and upkeep.

Benefits of buying a new-build property

i. High energy efficiency: New-build houses typically have a high EPC rating, as they often feature the latest insulation technologies, double- or triple-glazed windows, and new appliances.

ii. Savings on repairs and maintenance: Because the building and everything in it are new, there is less worry about having to pay for repairs and maintenance.

iii. No chains: Buying directly from the developer means you are the first owner and and the process of registering and transferring ownership will be easy and straightforward.

iv Modern design: From stylish open-plan layouts to modular fixtures and other home automation systems, your property is equipped with the latest and trendiest designs.

v. Strong rental demand: New build homes receive strong rental demand owing to their superior energy efficiency, modern amenities and lifestyle facilities.

Limitations of buying a new-build property

i. More expensive: The price per square foot of a new property will mostly be higher than that of a period house in the same location.

ii. Limited customisation: Most new buildings in London consist of apartment blocks and towers, where there are restrictions on the layout changes and structural modifications you can make.

iii. Service costs and ground rents: Property owners have to pay higher maintenance and service charges for shared amenities like communal gardens, swimming pools, gyms and parking spaces.

Benefits of a period property

i. Historic charm: Most period homes are more than a hundred years old and have features from Georgian and Victorian eras, such as high ceilings, cosy fireplaces, enormous sash windows, and big rooms with outside spaces.

ii. Prime neighbourhoods: If you buy a period house, you’ll also own a valuable piece of real estate in one of London’s most prestigious neighbourhoods, such as Chelsea, Kensington, Hampstead, Mayfair, Notting Hill, and others, where demand is high and supply is low.

iii. Freedom to personalise: The freehold title of most period properties allows owners to make extensive renovations and changes to the layout.

iv. Desirability: Affluent buyers looking to own a piece of history may offer a good price, even after many years have passed.

Limitations of a period property

i. Cost of upkeep: Even if you get a good deal on the property, maintaining an older building may come with expensive repairs and other upkeep costs.

ii. Higher electricity bills: Period homes have lower EPC ratings as bigger rooms with old appliances and insulation methods tend to use more electricity.

iii. Costly to insure: Because of its age and other care needs, insuring a period property is usually more expensive.

Which one is better for you?

Ultimately, your investment goals and lifestyle choices will help you decide between a new home and a period property in London. A new-build home is the best choice for you if you want the latest home design and energy-saving features. If you want to live in a typical English home in a prestigious London neighbourhood, a period property might be worth looking at.

How can we help you find the right property?

Benham and Reeves has 21 branches across London, along with 14 overseas offices, to help you find the property of your choice. Whether it is buying a new home by top developers or a period family house, we have diverse properties up for sale.

Furthermore, if you need help with furnishing and refurbishments or need a trusted partner to manage tenancy and other property needs, we specialise in those areas as well. Check out our overseas investor guides or contact us to know more about investing in London properties.