Is Letting Out New Builds a Good Idea?

By Rob King

By Rob King

If you’re looking to get involved in the buy-to-let market, you might be wondering if letting out new builds is a good idea. Do they have any advantages over older houses that make them more suitable for rental?

As with any other financial investment, it’s important to weigh up both sides of the equation before parting with your money. In this article, we’ll discuss whether letting out new builds is a good idea.


Buy-to-let With New Builds

So, is letting out new builds a good idea? In simple terms, yes, because the property is new and therefore you won’t have to deal with the usual issues associated with older houses.

Most importantly, there’s a much greater guarantee that everything in the property is working and conforms to up-to-date safety standards. For example, things like wiring, heating, and appliances will all be modern and functional, which isn’t always the case with older properties.

When it comes to renting property, this is helpful because it means your tenants won’t have to call you for repairs if something goes wrong. Similarly, it means you don’t have to spend time and money improving the property before putting it on the rental market.

Another benefit of investing in a new build is that they’re often in highly sought after locations. While this isn’t always the case, many new-build estates pop up in suburban areas going through a process of regeneration. This makes them suitable for families and professionals, meaning you’re more likely to find tenants faster.

In short, the benefits of letting out new builds are:

Fewer maintenance issues
Generally lower running costs
High demand for certain demographics
No need to renovate


The Potential Downsides of Renting New Builds

While renting out a new build might sound like the perfect way to invest money, it’s not entirely without its downsides. That said, none of these are major, but they’re worth considering before making the jump.

1. It’s harder to add value

It’s not impossible to add value to a new build, but it’s unlikely you’ll be able to do anything significant. Older properties are easier to renovate, which can be a good way to add value to the property (meaning you can charge more rent).

2. Some new builds can have issues

Older houses might need some work, but generally you’ll know about major issues before buying. This isn’t the case with new builds, as they often haven’t stood long enough for problems to become apparent. Granted, this is rare, but it’s definitely worth considering.

3. New home premium

New builds might come with a higher price tag simply because they’re new. If you come to sell it in a few years’ time, you might find its value hasn’t changed as much as you’d like.



If you’re looking to invest in property, letting new builds can be a good idea because they’re generally easier to maintain. Of course, be sure to consider the pros and cons before investing to ensure you’re making an informed decision.

Rob King
Rob King

“Property Investing has totally changed my life. I get to work hard at doing something I love and spend time with my family.

Creating new homes for people, you see the smiles on their faces. It’s incredible to see the joy that you can give them.”

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