Category: Housing & Property

Short answer:

Because the price of a new build includes a developer premium that disappears once the property is no longer new.

This is structural, not a mistake.

What the “new build premium” is

When you buy a new build, you are not just buying the property.

You are also paying for:

• Brand-new condition
• Choice of finishes
• Incentives bundled into the price
• Marketing and sales costs
• Developer profit

These costs are embedded in the initial sale price.

Once you own the property, that premium is gone.

What happens the moment it’s resold

As soon as the property is no longer classed as new:

• It is valued against comparable resale homes, not new builds
• Incentives are stripped out
• Buyers become more price-sensitive

The market resets the price to what similar second-hand homes are worth.

This often looks like a loss, even if the wider market is stable.

Why incentives hide the true price

Developers often offer incentives such as:

• Stamp duty contributions
• Free upgrades
• Cashback or legal fee support

These benefits are rarely reflected in official sale prices.

Mortgage valuations are based on headline price, not incentives, which can exaggerate the apparent value at purchase.

The role of mortgage valuations

Lenders are cautious with new builds.

They often:

• Apply stricter loan-to-value limits
• Use conservative comparables
• Assume short-term depreciation

This affects both initial borrowing and resale expectations.

Why this doesn’t happen to every new build

Value drops are more likely when:

• Supply is high in the local area
• Developments are large and uniform
• Incentives are aggressive
• The wider market is flat

Smaller developments in constrained areas can behave differently.

Why people are surprised by this

New builds are marketed like consumer products:

• Clean
• Modern
• “Better than old”

But property markets price comparables, not condition.

Once the marketing layer is removed, pricing becomes mechanical.

The practical takeaway

New builds are often best thought of as:

• A lifestyle choice
• A convenience purchase
• A long-term hold

They are less suited to short-term resale expectations.

Understanding this helps align price, timing, and expectations.

One simple next step

If you’re considering a new build:

Compare the price to similar resale homes nearby — not to other new builds.

That comparison reveals the embedded premium.

New builds are priced for first ownership, not immediate resale.

Short answer:

Yes. In most cases, you are not legally required to have a smart meter installed.

Energy suppliers can encourage installation, but they generally cannot force it.

What the law actually says

There is no law in the UK that requires households to accept a smart meter.

Smart meters are part of a national rollout, but that rollout is based on:

• Targets for suppliers
• Incentives and encouragement
• Not compulsory installation for customers

This is why refusal is still possible.

Why suppliers push so hard

Energy suppliers are under pressure to meet rollout targets.

Smart meters help them:

• Reduce manual meter readings
• Lower operating costs
• Improve billing accuracy
• Manage energy demand more efficiently

That’s why communications can feel persistent or urgent, even when installation is optional.

When refusal is usually accepted

In most standard situations, you can simply say no.

This includes:

• Owner-occupied homes
• Rental properties (with tenant consent issues aside)
• Customers paying by direct debit

Suppliers may continue to ask, but refusal alone does not breach your contract.

Situations where pressure may increase

There are a few scenarios where suppliers may apply more pressure:

Prepayment meters

If you are on, or moved to, a prepayment meter, suppliers often argue that smart meters are safer and more practical.

Even then, installation is usually policy-driven, not legally forced, but resistance can become more difficult.

Meter replacement or faults

If an old meter fails or becomes unsafe, it may need replacing.

In these cases:

• A replacement meter is required
• A smart meter may be offered as the default

You can usually request a non-smart alternative, but availability can vary.

Why people choose to refuse

Common reasons include:

• Privacy concerns
• Worries about reliability or signal issues
• Preference for manual control
• Past problems with billing after installation

None of these reasons are illegitimate.

You are not required to justify your decision.

What refusal does 

not

 mean

Refusing a smart meter does not automatically mean:

• Higher tariffs
• Breach of contract
• Loss of supply

However, some newer tariffs or features may only be available with smart meters.

That is a commercial choice, not a legal penalty.

The practical takeaway

Smart meters are encouraged, not compulsory.

You can usually refuse installation, but:

• Expect repeated requests
• Expect less flexibility if your existing meter fails
• Be aware that some tariffs may be unavailable

Understanding this distinction makes supplier conversations calmer and more controlled.

One simple next step

If you’re unsure where you stand:

Check your supplier’s smart meter policy and your current meter type.

That tells you whether refusal is straightforward or likely to be contested.

The rollout is national.

The decision is still individual.

Short answer:

It means the normal, gradual deterioration of a property caused by everyday use over time — not damage, neglect, or misuse.

The term is deliberately flexible.

That’s why it causes disputes.

Why the phrase is so unclear

“Reasonable wear and tear” is not precisely defined in law.

Instead, it is assessed case by case, based on what a reasonable person would expect after normal use.

This allows fairness across different situations, but it also creates uncertainty.

What counts as reasonable wear and tear

Examples usually include:

• Faded paint or wallpaper
• Light scuffs on walls
• Worn carpet in high-traffic areas
• Loose door handles over time
• Minor marks on worktops

These are expected outcomes of someone living in a property.

They are not the tenant’s financial responsibility.

What does 

not

 count as wear and tear

These are usually classed as damage:

• Large stains or burns on carpets
• Broken fixtures or fittings
• Holes in walls beyond normal fixings
• Missing items
• Damage caused by pets where this was not permitted

Damage is about cause, not appearance.

The factors that matter most

When a dispute is assessed, four things are usually considered together:

1. Length of tenancy

The longer someone lives in a property, the more wear is expected.

2. Quality and age of items

Cheap or old furnishings are expected to wear out faster than new, high-quality ones.

3. Number and type of occupants

A family will reasonably cause more wear than a single occupant.

4. Evidence at check-in and check-out

Inventory reports and photographs matter more than opinions.

Disputes are resolved on documentation, not intent.

Why this often leads to disagreement

Landlords may expect a property to be returned in near-original condition.

Tenants may assume all deterioration is acceptable.

The system sits between these expectations.

The phrase exists to balance:

• Fair use
• Asset protection
• Real-world living

How disputes are actually resolved

Most disputes are not decided in court.

They are handled through:

• Deposit protection schemes
• Independent adjudicators
• Written evidence and photographs

The process is procedural, not personal.

The practical takeaway

“Reasonable wear and tear” is judged on:

• Time
• Use
• Quality
• Evidence

Not on whether the property looks perfect.

Understanding this helps both tenants and landlords set realistic expectations.

One simple next step

If you’re renting or letting a property:

Check the inventory report and photos from the start of the tenancy.

That single document carries the most weight if a dispute arises.

The rule exists to allow homes to be lived in, not preserved.

Short answer:

Not in the way most people think.

If your flat is leasehold, you own the right to live in the property for a fixed number of years, not the land it sits on and not the building itself.

What leasehold ownership really means

A leasehold flat is a time-limited property right.

When you buy it, you are purchasing:

• The right to occupy the flat
• For a set number of years (often 99, 125, or 999)
• Under the conditions written into the lease

You do not own:

• The land
• The structure of the building
• The common areas (stairs, roof, external walls)

Those are usually owned by the freeholder.

Why this feels confusing

Estate agents often say things like:

“You own the flat, just not the freehold.”

That phrasing is misleading.

A more accurate description is:

You own a long-term rental right that can be bought and sold.

It feels like ownership because:

• You paid a large upfront sum
• You can sell the flat
• You may live there indefinitely if the lease is long

But legally, it is still a declining asset unless the lease is extended.

Why leasehold exists at all

Leasehold flats exist for one main reason: shared buildings need central control.

Someone has to:

• Own the structure
• Arrange insurance
• Maintain the roof and external walls
• Enforce rules consistently

The lease system was created to make that manageable at scale.

Over time, additional charges and obligations were added:

• Ground rent
• Service charges
• Permissions and fees

That layering is why the system now feels opaque.

What actually matters in practice

If you own a leasehold flat, three things determine its real value and risk:

1. Remaining lease length

As the lease shortens, the flat becomes harder to sell and mortgage.

Below 80 years, extension costs rise sharply.

2. The lease terms

The lease controls:

• What you can change
• What fees can be charged
• How costs are split
• What permissions are required

Two flats in the same building can have very different leases.

3. The freeholder or managing agent

How the building is run affects:

• Service charge levels
• Responsiveness
• Dispute risk
• Overall stress

This has nothing to do with the flat itself, but it affects daily life.

Are leasehold flats being phased out?

For new houses, largely yes.

For flats, no — not yet.

While reforms are ongoing, most flats in England and Wales are still sold as leasehold, and that is unlikely to change quickly.

The practical takeaway

If you own a leasehold flat, you should think of it as:

A long-term, sellable right to occupy a home — governed by a contract — rather than permanent ownership of property.

That framing makes decisions clearer and reduces surprises later.

One simple next step

If you own or are buying a leasehold flat:

Check the remaining lease length.

That single number tells you more than the asking price.

Understanding how the system works does not mean you have to like it.

It just means you can navigate it with fewer surprises.