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Louise Hurren talks to players in the French property market and finds out why Brits are buying new build homes.
Right now in France, new build seems to be the word of the week (no, make that year). Drive around the outskirts of any town or village in Languedoc in particular, and you’ll see lotissements (housing estates), résidences (apartment blocks), terrains (building plots), and a whole variety of modern, one- and two-storey structures (maison individuelle) popping up like proverbial mushrooms.
New build developers in France are building projects the length and breadth of the Languedoc, some of which are selling out before the foundations have even been laid (see our 'What’s New In Languedoc New Build' feature for a heads-up on the latest and greatest of these).
For the French, there’s nothing unusual about building your own home in France, or buying brand new. Au contraire, having a “made to measure” home complete with garage, patio, pool and cuisine d’été (barbecue area) is quite the thing.
But have Brits caught on to the benefits of brand new homes in France? I spoke to Latitudes founder Penny Zoldan, who sells to an essentially Anglophone clientele. According to Zoldan, sales of French new build homes really started taking off in 2000, when they represented around 10 per cent of her business, and they have increased steadily every year, now representing some 30-35 per cent of Latitudes’ sales.
The trend is confirmed by Sébastien Duquesne of UCB International Buyers, who states that as far as the company’s clients are concerned, there is a marked move towards new construction: “In certain areas… (there is) a definite surge in interest in new-build or self-build projects in France. These now represent 16 per cent of our business with the British market,” he observes, “and consequently, UCB offers a number of mortgage products designed with this trend in mind.”
Patricia Février of new build specialist agency A Place In France agrees that new build sales in France to Brits have grown over the past five years. She highlights the growth in leaseback purchases, and suggests that thanks to extensive media coverage, the average British buyer is far more clued up with regard to this way of owning French property (VAT of 19.6 per cent is applicable to new constructions, but many developers offer leaseback schemes through which the buyer can reclaim the VAT by letting the property out and earn guaranteed rental income– see point six below).
So how come this budding love of new build? Here are some of the possible reasons:
 You get to choose your layout
If we’re talking self-build in France (ie. you pay a builder to put up a house, just for you, or you do it yourself), you may well be able to specify layout, and this can be adapted for special needs.
 Once built, it’s box-fresh
When delivered, a new build home is 100 per cent finished and ready to move into, unlike resale properties that that can need months of costly renovation before they are inhabitable (that sticky lino, stained bidet and floral patterned wallpaper just have to go). OK, so off-plan buyers have to allow 12-18 months between signing the reservation contract and getting the keys to their French nest, but this is the price you pay for a box-fresh home in France.
 Low maintenance
Repairs and on-going maintenance costs are likely to be very low, and construction and structural guarantees give owners peace of mind; features such as double glazing, sound proofing and thermal insulation often come as standard.
 Cost
This can be a bit of a hard one to pin down – obviously you can’t compare apples with pears - but the cost of having a home built to spec in France can sometimes be cheaper than renovating (new build costs are generally easier to define than renovation costs). Brand new homes in France within developments may appear more expensive than resale property in the same area, but don’t forget you’re getting brand new bricks and mortar for your bucks (see point three above).
 Staged payments
Normally, 5-10 per cent of the purchase price is due on reservation, with a further 20 per cent payment (to a total of 25 per cent of the price) made on completion of the foundations (although the percentage and stages can vary from one developer to another).
You can expect to pay 35 per cent (including the deposit) when the foundations are laid, followed by 30 per cent when the floor goes down, 5 per cent when the roof is put on, 20 per cent when the doors and windows are fitted, 5 per cent on completion, and a final 5 per cent on handover of the keys.
Lenders in France usually release funds in line with the staged payments, so interest is only paid on the money released – and in the case of some mortgages, repayments are deferred until your new home is delivered.
 Tax savings
New build homes in France can mean savings on the tax front, as the taxe foncière (property ownership tax) is reduced for the first two years.
Value-added tax – what the French call TVA or taxe à la valeur ajoutée - of 19.6 per cent is applicable to new constructions, but many developers offer leaseback schemes that allow you to claim back the VAT by letting the property through a management company for a fixed time period of 9 – 11 years, with a number of weeks each year for personal use and a guaranteed rental income.
A recent change in French property law means that if you own a leaseback property in France and decide to sell, you’re no longer liable to repay any of the VAT rebate either, so long as the buyer continues with the leaseback scheme.
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