What is a new build & resale Shared Ownership home?
Shared Ownership is an affordable home-buying scheme aimed to help those who can't afford to buy on the open market get onto the property ladder. It works by buying a share (usually 25%) of the home and paying rent on the remaining amount you don't own. This means you can buy with a much smaller deposit than what you would need by buying on the open market.
Shared Ownership is available on both new-build developments and second-hand 'resale' homes, but which is right for you? We delve into the benefits of both options, but first let's clarify what a new build and resale home is:
What is a New Build home?
New build Shared Ownership homes are purpose-built properties, usually part of a larger development built by a Housing Association (usually in partnership with a developer). If you buy a new-build home, you will be the first person to live there.
What is a Resale home?
Resale properties are homes that a current owner bought through the Shared Ownership scheme and wishes to sell on. This means you will not be the first person to live in that home.
Process of buying a new build and resale home
New Build Homes
One of the major benefits of buying a new-build home is that you are buying directly from the developer or housing association meaning there are no moving chains which can often complicate or in some instances derail a home purchase if another part of the chain falls through.
With new-build homes, developers will often launch homes off-plan meaning you will usually view a dressed show home when making a reservation rather than the actual home you are buying (although you will usually be able to view the home if you speak to the developer). With buying off-plan, on some occasions the practical completion date (the date when a building is complete) can move which could delay the time to move into your home.
Before reserving a home you will usually be asked to complete an affordability assessment with an Independent Mortgage Advisor (IFA) to ensure that homes are affordable to you.
Resale Homes
Unlike a new-build home, a resale Shared Ownership home is already lived in meaning you can view the exact property you are looking to buy and really get to envision yourself living there. Rather than viewing the home with a sales-person, you may view the home with the current home-owner which allows you to find out about what it's like to live in the home by someone who has already lived there.
The process of buying a new build or resale Shared Ownership home in principle is exactly the same as you will still need to obtain a mortgage, appoint a solicitor to complete the necessary legal paperwork and meet the basic eligibilty criteria for Shared Ownership.
Cost of buying a home and upkeep
Cost of Buying a New Build home
Like all Shared Ownership homes, you buy an initial share (usually 25%) of the home and pay rent on the percentage you don't own to the housing provider. This means you can usually buy with a much smaller deposit than compared to buying on the open market as you only need a mortgage on the share purchased. The rent on the percentage you don't own is usually subsidised and lower than the market rate.
The value of the home is based on current market valuations and unlike on the open market, you cannot make offers on the home below the value advertised.
New build homes often benefit from new home features and mod cons such as integrated appliances and the latest energy efficiency features which means there may be a slight new build premium on new homes compared to pre-owned homes but could save you on energy costs in the long run!
New build homes also benefit from a warranty to which can save you money if anything goes wrong in your home for the first two years.
Cost of buying a Resale Shared Ownership home
When buying a resale Shared Ownership home, you have to buy at least the percentage owned by the current homeowner. For example, if the current homeowner has staircased and now owns a 40% share, then you would need to buy a minimum of 40% too which can increase the initial deposit amount required.
However, you may benefit from slightly lower house values compared to new build homes as well as resale homes that may have a lower lease length in some circumstances.
You do also need to factor in whether there are any additional costs associated with decorating or upkeeping an older property if you want to change the decor or need to invest in newer appliances for example.
Neighbourhoods and Communities
Creating new neighbourhoods with new-build homes
Like with all new-build homes, purchasers will be moving into the building at similar times and could see many people moving to a completely new area.
What's more, you may find that many people moving in are similarly first-time buyers with a lot of shared interests as you go through the process of buying a home at the same time.
With many of our new build developments we will host a 'meet the neighbours' event giving new purchasers a chance to meet other people in the building and helping to establish new communities for the future!
Established communities with resale Shared Ownership
With resale Shared Ownership homes, you will find that you are likely joining an established community that may have been living in the same home for a number of years.
This can be a great opportunity if you are moving to a new area and not familiar with local hotspots to get recommendations from your new neighbours.
It's also likely to mean that your new neighbours aren't short of sugar to help you get settled into your new home with a cup of tea!
Home features & specification
New build specification
Like most new-build homes, they often include modern fixtures and fittings including high-specification appliances such as integrated dishwashers and washer dryers. They will also usually benefit from new building regulations helping to ensure your home is energy efficient which reduces your running costs in the future. This is great for first-time buyers who may not have the funds initially to buy new appliances.
New-build homes will also provide a 'blank canvas' with clean white walls and interior meaning you can start styling your home to suit your personal taste, whether that's Scandinavian-inspired design or a more art deco vibe.
Resale Shared Ownership home features
With resale Shared Ownership homes, you may find that there is a sense of character given it is an older property and potential to find period features within the home which you may be drawn to compared to a new-build home.
As the home is pre-owned, it is likely that the current home-owner has already decorated the home to their taste. Great if your styles match or you weren't sure what to do with the space. Don't worry if it isn't though as unlike with a rental property, you are free to redecorate the interior how you want as an owner-occupier under Shared Ownership terms.
Older properties will generally have a sense of character about them. Whether you like the period features of an older property, or you may appreciate some of the previous owner’s handiwork around the home, they’re visually quite different from a new build.
A buyer of a resale home will still be able to decorate and style their home according to their taste, however this often isn’t quite as easy with an existing property as the home will have previously being altered and fitted out to suit the tastes of the previous occupants; consequently, it may prove trickier to start afresh without doing some more work first.
Energy Efficiency
New Build energy efficiency
At Peabody, we are committed to building more sustainable communities. Our New Build Shared Ownership homes are designed and constructed to be significantly more energy efficient than older properties. Around 80% of new builds achieve a top Energy Performance Certificate (EPC) rating of A or B, meaning they come equipped with features like double glazing, modern boilers, and advanced insulation as standard—so no extra costs for these essential upgrades.
This focus on sustainability not only helps reduce your carbon footprint but also means lower energy bills, making New Builds a smart choice for first-time buyers looking for a greener, more cost-effective home.
Resale home energy efficiency
Resale Shared Ownership homes may not always benefit from the same level of energy-efficient features as their New Build counterparts, especially if the property is older or hasn’t been recently upgraded. While previous owners may have made improvements like installing double glazing or upgrading boilers, efficiency levels can vary significantly. Buyers should always check the EPC rating of a resale property to understand its energy performance and consider any potential upgrades needed to improve comfort and reduce long-term energy costs.
Frequently asked questions about New Build vs Resale homes
New Build homes are brand new and built to modern standards, offering energy efficiency, modern appliances, and a warranty for peace of mind. Buying directly from Peabody means no moving chains, and our new developments foster strong community connections. They’re ideal for buyers wanting a low-maintenance, energy-efficient home.
Yes, resale homes are already lived in, so you can view the actual property in person. New Builds on the other hand are viewed off-plan or via show homes.
Possibly. When buying a resale home, you must purchase the share currently owned by the seller, which may be more than the typical 25% share in New Builds, requiring a larger deposit.
The overall process is similar as both require mortgage approval, legal paperwork, and meeting Shared Ownership eligibility. New Builds may however involve off-plan purchases and waiting for construction completion.
Homeowner Stories
Discover a collection of homeowner stories from previous Peabody New Homes purchasers and find out how we were able to help them onto the property ladder and find their dream home through Shared Ownership.
"It's great to be living in a buzzing new area that is both affordable and has plenty to offer!"
"It’s a 10/10 apartment, the quality here is exceptional!"
"I was scared but I took a leap of faith with Peabody New Homes, they were really caring and accommodating."