How to decide on the type of home to buy

Buying a home is one of the most important financial decisions you’ll make, requiring careful consideration of multiple factors that will affect your ownership experience for years to come. From understanding the true cost of ownership to going through tenure choices and property characteristics, making an informed decision requires thorough research and planning.

1. Budget, affordability and the total cost of ownership

When setting a realistic budget, you must account for insurance, service charges or ground rent (if applicable), and taxes. Stamp Duty Land Tax (SDLT) thresholds, in England and Northern Ireland reverted on 1 April 2025 which can meaningfully change what you can afford. The nil rate threshold dropped from £250,000 to £125,000, whilst first-time buyer relief now only applies to properties up to £500,000 instead of £625,000. These changes mean buyers might face higher upfront costs, with some properties now requiring thousands more in stamp duty than before the threshold changes.

2. Tenure choice: freehold, commonhold or leasehold (and what’s changing)

Understanding tenure types is essential, as they affect control over your property, ongoing costs, and resale value. The Leasehold and Freehold Reform Act 2024 has introduced changes to strengthen leaseholder rights, including removing the requirement to pay marriage value when extending leases and increasing standard lease extensions to 990 years with zero ground rent. The government has also launched consultations on service charges and is working towards a new legal framework to reinvigorate commonhold. These reforms mean buyers should carefully examine lease terms, as the landscape is evolving to provide better protection for leaseholders whilst making it cheaper to extend leases or buy freeholds.

3. Property age and building safety: flats vs houses, maintenance and compliance

The choice between period homes and newer builds involves weighing trade-offs between character and convenience. Older properties might offer charm and established neighbourhoods but could require some maintenance and energy efficiency improvements. New-build homes typically come with warranties, higher energy performance certificates, and modern safety standards, though buyers should be aware of potential snagging issues and the need for thorough inspections. For flats specifically, building safety has become paramount following ongoing cladding remediation efforts, with protections now in place for leaseholders. Buyers should verify building safety certificates and understand any remediation works that may be required.

4. Location and lifestyle fit (plus current buyer support schemes)

Balancing location factors such as commute times, transport links, schools, and amenities against property type and size needs careful consideration of your long-term needs. The government’s First Homes scheme offers eligible first-time buyers discounts of 30-50% on new homes in England, providing a valuable opportunity to access homeownership in areas that might otherwise be unaffordable. When evaluating locations, consider current circumstances and how your needs might evolve, such as factors like family planning, career progression, and lifestyle changes, which should influence your decision alongside immediate practical considerations.

The main factors in making the right choice are thorough research, realistic budgeting, and understanding how recent legislative changes affect your options. With stamp duty thresholds reverting and leasehold reforms progressing, the property landscape is shifting in ways that could impact your purchase decision and long-term ownership experience.