A post-Budget surge in new-build activity is exposing inexperienced investors to complex contractual risks
A wave of investors entering the new-build property market following recent Budget changes are signing contracts they do not fully understand, according to conveyancing technology firm Lawlab.
Ian Perkins, managing director at Lawlab, said off-the-plan and house-and-land contracts are among the most legally complex in the property market, yet many buyers approach them with less caution than they would apply to purchasing an established home.
He attributed the problem to tax-driven urgency, developer marketing environments designed to project simplicity, and a widespread misconception that a newly built property carries lower contractual risk.
"Investors are walking blind into new-build contracts because the whole sales environment is designed to feel safe," Perkins said. "The brochures look glossy, the process feels guided, and buyers assume the contract must be straightforward, but none of that reflects the legal reality. These contracts are long, complex, and often heavily weighted in favour of the developer or builder."
Perkins (pictured right) noted that buyers frequently mistake the absence of auction pressure, physical inspections, and immediate repair obligations as indicators of reduced risk. Some also assume that government building regulations provide broader contractual protections than they actually do.
"There's a big difference between consumer protections and contract protections," he said. "Building standards don't protect you from sunset clauses, variation rights, valuation gaps, or the developer's ability to change materials, specifications, or timelines."
A further complication is the absence of any standardised new-build contract. Each developer produces its own agreement, meaning buyers cannot rely on familiarity with the format.
"Every developer writes their own contract, so, there is no standard version," Perkins pointed out. "Investors are comparing it to buying an established home, where the risks are visible and the contract is familiar. However, with new-builds, the risks are buried in the fine print, and too many people are signing blind."
Perkins warned that the pace of policy change is outstripping buyers' capacity to understand the legal implications of the agreements they are entering.
"When policy changes rapidly, behaviour changes quickly, too, but contract understanding does not," he said. "If investors don't slow down and get proper advice, they risk locking themselves into agreements that expose them to delays, cost blowouts, valuation shortfalls, or even contract termination under sunset clauses."
He called on policymakers, industry bodies, and developers to address the growing gap in buyer education before contracts are signed.
"New-builds can be a great investment, but only when buyers understand what they're agreeing to," he said. "Right now, the perception of simplicity is masking real contractual complexity. "If we don't lift contract awareness, we'll see a wave of avoidable financial stress in the years ahead."
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