How It Works

Typically, schemes work whereby the house you own is valued (usually by three independent estate agents) and if you are agreeable to the price offered, the housebuilder buys it off you, which enables you to move into their brand new home immediately (subject to build completion). Each housebuilder may operate their scheme slightly differently, for example most insist it only applies to people who are 'trading-up' – in other words, who are buying a new home costing more than the value of their existing property.

Chain Break

Those who find themselves ineligible for a part-exchange scheme – perhaps because the price difference between their old home and the new one they have their eye on is not great enough – will find several housebuilders offer ‘chain break’ or similarly named schemes. In such a scenario, the developer may offer to buy a cheaper priced property lower down the chain, which will enable the ‘links’ to be joined, and you to move into the new home of your choice.

Great Benefits to Buyers

David Pretty, CBE Chairman of the New Homes Marketing Board, said: "Housebuilders' part-exchange schemes vary, but generally they offer great benefits to buyers, benefits that the second-hand market cannot hope to match. Most are subject to normal status provisos and usually apply to people who are 'trading-up'. Buyers simply trade-in their existing properties, often getting up to full market price for their old home while side-stepping all the hassle and cost usually associated with selling-up and moving.

“Usually, the valuation formalities can be completed quickly and buyers will pay no estate agent's fees, or face worries about the dreaded housebuying 'chain' breaking. In a more difficult market, where buyers are finding it harder to sell their old properties and chains are taking longer, part-exchange is a great boom. In my experience, it can give customers a great degree of certainty and peace of mind at what can be a very stressful time.”

Key benefits of Part Exchange:

• Saves you money
• Saves you hassle and stress
• Saves you time
• Saves you work

"Housebuilders' part-exchange schemes vary, but generally they offer great benefits to buyers."

David Pretty, CBE Chairman of the New Homes Marketing Board