Part exchange explained: how it works and whether it's worth it
Part exchange is when a housebuilder buys your current home as part of the deal when you buy one of its new-build homes. The value it gives your home is taken off what you pay for the new one, so you don't need to find a buyer or join a chain. The trade-off is that developers usually offer less than you'd get on the open market, and schemes only cover certain homes and buyers. This guide explains how part exchange works in England and Wales, how offers are worked out, and how to tell whether it's worth it for you.
How does part exchange work?
- Choose a new-build home on a development where the developer offers part exchange. It may only be available on certain plots.
- Ask whether you qualify. Each developer sets its own conditions and should explain them clearly.
- The developer values your home. If the developer is registered with the New Homes Quality Board (NHQB), its code says the valuation must be independent and come from more than one suitably qualified source.
- You get a written offer, which should say how long it's valid for and what deductions have been made from the market valuation.
- You reserve the new home. You sign a reservation agreement and usually pay a reservation fee. If the developer is registered with the NHQB, you have a 14-day cooling-off period to cancel and get the full fee back.
- Surveys and legal work. The developer may survey your home, and solicitors handle both the sale and the purchase.
- Exchange and complete. The two deals are usually tied together so they complete on the same day. If they might not, the developer must tell you what happens.
How much will a developer offer for my home?
There's no fixed formula. The developer starts from the market valuations and may then make deductions, for example to cover the cost and risk of reselling your home. Under the NHQB code, the terms must set out the price offered for your home and any deductions from the market valuation.
In practice, a part-exchange offer is usually below what you could expect selling through an estate agent, because the developer takes on the job of selling your home and the risk that it takes longer or sells for less. That's the same trade-off as selling to any quick buyer.
To judge an offer:
- Get your own figures. Ask two or three local agents for valuations, and check recent sold prices for similar homes using HM Land Registry's sold price search.
- Ask to see the developer's valuations and the reasons for any deductions.
- Compare the whole deal, not just the figure for your home. A generous price for your home may come with less discount on the new one, and the other way round.
- Count what you'd save in agent fees, time and chain risk, and set that against any difference in price.
Our guide on how to get a house valuation explains how to check the numbers yourself.
Who can use part exchange?
Each developer sets its own conditions, and under the NHQB code it must explain how you can qualify. Things to ask about include:
- how the price of the new home compares with the value of your current home
- the type, condition and location of your current home
- whether you'll need a mortgage on the new home, and whether you have one agreed in principle
- which plots or developments the scheme covers, and for how long
If your current home has a problem that makes it hard to sell, such as a short lease or major repairs, ask early whether the developer will accept it.
The pros and cons of part exchange
| Pros | Cons |
|---|---|
| No need to find a buyer or hold viewings | Usually a lower price for your home than on the open market |
| No chain on your sale | Only works if you're buying a new-build home from that developer |
| A moving date tied to your new home | Often limited to certain plots, homes and buyers |
| No estate agent's fee, as there's no open-market sale | May leave less room to negotiate on the new home |
| Less disruption if you're juggling work, children or care | The offer can be revised after a survey, or expire |
Part exchange vs assisted move vs selling it yourself
Some developers offer an assisted move instead, where they help you sell your current home on the open market rather than buying it themselves.
| Part exchange | Assisted move | Selling first, then buying | |
|---|---|---|---|
| Who buys your home | The developer | A buyer found on the open market, with the developer's help | A buyer you or your agent find |
| Price for your home | Usually below open-market value | Aims for the open-market price | Aims for the open-market price |
| Agent fees | None | Ask whether the developer pays them | You pay them |
| Certainty | High once contracts are exchanged | Depends on your buyer | Depends on your buyer and chain |
| Best for | Speed and simplicity | A better price, with some help | The highest price, if you have time |
Stamp Duty and other costs
- Stamp Duty is charged on the full value of the new home, not just the cash difference. Under the rules for property exchanges, the tax is based on at least the market value of the home you're buying. In Wales, Land Transaction Tax applies instead, so ask your solicitor how it's worked out.
- Your mortgage on your current home is paid off from the part-exchange value on completion. Ask your lender whether you'll pay an early repayment charge, or whether you can move the mortgage to the new home. See early repayment charges.
- Legal fees. You'll need a solicitor for both the sale and the purchase. Ask whether the developer contributes to them.
- Capital Gains Tax isn't usually due when you sell your only or main home, as long as you meet the conditions for Private Residence Relief. See do you pay tax when you sell your home.
Your protections
If the developer is registered with the NHQB, its New Homes Quality Code applies. Version 2 of the code covers homes reserved on or after 2 March 2026. It says:
- part-exchange terms must be clear, fair and not misleading, explained in plain language, and must not be used to pressure you into buying
- the developer must give you enough time to consider the offer
- the terms must include the price offered for your home, how long the offer lasts, how the market valuation was decided, any deductions, how you qualify, and the completion dates
- the developer must not use high-pressure selling, such as falsely suggesting other buyers are interested or offering an incentive in return for an immediate decision
- reservation agreements must include a 14-day cooling-off period with a full refund, and must list anything the sale depends on, such as your part exchange
- the deadline for exchanging contracts must be reasonable and, unless you ask for an earlier date, no sooner than six weeks after you reserve
- you should get independent legal advice, and you're free to choose your own solicitor
You can check whether a developer is registered on the NHQB website. If a complaint about a registered developer isn't resolved, you can take it to the New Homes Ombudsman Service.
Questions to ask before you agree
- How was my home valued, by whom, and can I see the valuations?
- What deductions have you made, and why?
- How long is the offer valid, and could it change after a survey?
- What happens if my sale and my purchase don't complete on the same day?
- Are you registered with the New Homes Quality Board?
- Will you pay any of my legal or other fees?
- What's the price of the new home without part exchange, and are other incentives available instead?
Is part exchange worth it?
It can be worth it if you've found the new-build home you want, you value a fixed moving date and no chain, and you're comfortable accepting less for your current home in return.
It's probably not the right choice if getting the highest price for your current home matters most, you're not set on a new build, or your home would sell quickly on the open market. In those cases, selling through an estate agent first, or using an assisted move, will usually leave you with more money.
Another option is to sell your current home for cash first, so you become a chain-free buyer who can negotiate on any home, new or not. Cash buyers, including us, usually pay below market value too, so compare our figure with the developer's. We make an offer within 24 hours, pay your legal fees and let you choose the completion date, and there's no obligation to accept. See what is a cash house buyer for how it works.
Questions people ask
How much do developers offer for part exchange?
There's no standard figure. The developer bases its offer on market valuations of your home and may then make deductions, for example for the cost and risk of reselling it. If the developer is registered with the New Homes Quality Board, the valuation must be independent and come from more than one qualified source. Ask to see the valuations and any deductions, and compare them with your own agent valuations.
Is part exchange a good idea?
It suits people who've found the new-build home they want and value a fixed moving date and no chain more than the highest price for their current home. It's less suitable if your home would sell quickly through an estate agent, or if getting the most money matters most. Compare the whole deal, including any discount on the new home, before you decide.
Do I pay Stamp Duty on the full price with part exchange?
In England, yes. Stamp Duty Land Tax on your new home is worked out on its full value, not just the cash difference you pay after the developer takes your current home. In Wales, Land Transaction Tax applies instead, so ask your solicitor how it will be worked out. Your solicitor will confirm the exact figure and any reliefs you qualify for.
Can a developer change its part-exchange offer?
It can, which is why the written terms matter. The offer should say how long it's valid for, and the developer may survey your home before committing, so problems found later can lead to a revised figure. Under the New Homes Quality Code, registered developers must set out the price offered, any deductions, how long the offer lasts and the date you need to accept by.
What's the difference between part exchange and an assisted move?
With part exchange, the developer buys your current home itself, usually for less than the open-market price. With an assisted move, the developer helps you sell your home on the open market instead, so you're more likely to get the market price but you still need a buyer, and the sale can still fall through. Ask each developer exactly what its scheme includes and who pays which fees.
Sources
- New Homes Quality Code, Version 2, March 2026 (New Homes Quality Board)
- The New Homes Quality Code (New Homes Quality Board)
- Finance Act 2003, Schedule 4, paragraph 5: exchanges (legislation.gov.uk)
- Stamp Duty Land Tax (GOV.UK)
- Tax when you sell your home (GOV.UK)
- Search house price data (GOV.UK)
- How to sell a home (GOV.UK)
Related guides
Cash buyer vs estate agent vs auction: which suits you?
An estate agent usually gets the highest price but takes longest (about 5 months on average, says GOV.UK), and sales can fall through until contracts are exchanged. A traditional auction is binding when the hammer falls and usually completes about 20 working days later, but there are fees and the price depends on the bidding. A cash buyer is usually quickest and simplest, but pays below market value.
Selling fastBelow market value explained
Below market value (BMV) means a price lower than a home would be expected to fetch on the open market, given proper marketing and a reasonable amount of time. Cash and quick-sale buyers usually offer below market value because they take on costs and risk and need to make a profit. Whether a BMV offer is fair for you depends on what you'd actually keep from each route, and how soon you need the money.
The processWhat is a property chain? How chains work, why they break and how to avoid one
A property chain is a line of linked sales where each buyer is also selling, so every sale depends on the others. A chain starts with a buyer who has nothing to sell and ends with a seller who isn't buying. In England and Wales nobody is bound until contracts are exchanged, so a problem anywhere in the chain can delay or collapse every sale in it.
General information for England and Wales, not legal, tax or financial advice. Last checked 26 October 2026.