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Home ownership
05/06/2026
Buying guide
12/11/2025
Home Truths: Fact Versus Fiction Why Buying A New Build Home Makes Financial Sense
For many first time buyers in the UK, the dream of owning a home can feel out of reach. Rising house prices, economic uncertainty, and the cost-of-living crisis have all contributed to a growing belief that getting on the property ladder is impossible. But is that really the case?
Let’s separate fact from fiction and explore why buying a new build home with Keepmoat is a smart and affordable move.
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Fiction: Buying a home is impossible with today’s wages.
Fact: It’s challenging, but far from impossible
While affordability is a real concern, many first-time buyers are still managing to purchase homes - often with the help of government schemes, shared ownership, and tailored mortgage products.
- The average UK salary is around £37,800
- Lenders typically offer mortgages up to 4.5 times your annual income meaning a maximum borrowing of £170,000 based on a salary of £37,800.
- This means to afford a £200,000 house a single person would need a 15% Deposit or around £30,000.
- With most new home builders offering a 5% contribution towards your deposit this would currently mean that saving £20,000 would make solo home ownership much more possible.
- With a £37,800 annual salary giving you £2,477.20 per month after tax and NI, saving just £200 a month from this amount means you could set aside this sum in just over 8 years.
- Whilst buying on your own at this salary range will limit your options, many younger people buying together in a joint mortgage are still able to buy homes across many of our new build developments in the UK.
- Entry level prices for new build schemes often make them accessible to many.
- If you both earn an average UK salary of £37,800 meaning a joint income of £75,600 most lenders will offer a mortgage of up to £340,200.
- With a 10% deposit you could afford a new build home with Keepmoat at around £378,000 in value.
So, whilst buying a property on your own with an average salary may mean several years of saving, for many joint mortgage owners, the choice and availability of new builds with deposit contribution offers and free financial advice makes starting your home ownership journey simpler.
Fiction: Renting is cheaper than buying.
Fact: Buying can be significantly more cost-effective.
Renting may seem more flexible, but it often costs more in the long run - and offers no return on investment. Here’s why buying makes more financial sense.
- The average UK rent is now £1,276 a month, and in London, it’s over £2,200 a month. That’s money you’ll never see again.
- Depending on your circumstances a mortgage on a £250,000 home with a 10% deposit would cost around £1,380 a month in the current market - and that’s money going toward ownership, not someone else’s equity.
- Over 25 years, renters could spend £383,000 plus with nothing to show for it. Buyers, meanwhile, build equity and eventually own their home outright.
- Property values tend to rise over time, meaning homeowners often benefit from capital growth - a return that renters miss out on entirely.
- Fixed rate mortgages offer payment stability, while rent can increase year after year.
- Homeowners can customise and improve their property, adding value and personal comfort. Renters are often restricted.
Remember, mortgage payments contribute to an asset whilst rent payments are an expense with no long-term benefit. If you’re still renting, discover a home near you with Keepmoat today and take steps to a decision that makes far more financial sense.
Fiction: New builds are too expensive.
Fact: New builds offer long-term savings and financial advantages.
While the upfront price of a new build may be slightly higher than an older property, the total cost of ownership is often lower - especially for first time buyers.
- You’ll see energy savings with a Keepmoat New Build.
- New builds can use up to 65% less energy than the average older property.
- Keepmoat homes consume around 8,135 kWh a year, while older homes average 20,433 kWh a year.
- 98% of Keepmoat homes have an EPC rating of B or better, compared to 49% of older homes having a rating of C or lower.
- Retrofitting older homes to match this efficiency could cost thousands of pounds, with long payback periods.
- On average older home renovations in the UK start from around £40,000 whereas new build offers no expensive repairs or surprises.
Fiction: You need a huge deposit to buy a house.
Fact: Low deposit mortgages and schemes make buying achievable.
- Many lenders now offer 95% mortgages, and schemes like Shared Ownership allow buyers to purchase a portion of a property and pay rent on the rest - reducing upfront costs.
- A 5% deposit on a £200,000 home is just £10,000.
- Keepmoat offer deposit contributions or part exchange options to make the process easier.
Fiction: New builds aren’t suitable for first-time buyers.
Fact: New builds are designed with first-time buyers in mind.
From compact layouts to energy-efficient features, Keepmoat new builds cater to modern lifestyles and budgets.
- Our developments include starter homes and apartments priced for entry level buyers.
- You'll also enjoy integrated appliances, fitted kitchens, and private gardens.
- Our warranties that cover 10 years for peace of mind.
- There's no renovation stress - just move in and enjoy.
Real Home Truths: Why Buying New Makes Sense
- Investing in your future Every mortgage payment builds equity. Renting builds someone else’s.
- You gain stability No landlord notices, no sudden rent hikes, no uncertainty.
- You save money long-term Lower bills, fewer repairs, and no renovation costs.
- You benefit from incentives From Help to Buy to developer offers, new builds come with perks.
- You own your space Decorate and personalise - it’s yours.
Buying your first home in the UK may feel daunting, but the facts tell a different story. With the right support, smart planning, and a focus on new build opportunities, homeownership is not only possible - it’s often the more affordable and financially sound choice.
So next time someone says, “Isn’t buying a home impossible these days?” you’ll know the truth.
Find a home near you with Keepmoat
*All workings out and examples given in this article are correct when taken as an average for the UK in November 2025. Individual cicumstances will always differ and whenever making decisions for your future, ensure you get support from independent financial experts.
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