Our Property Part Exchange Guide
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Content Written By: Raphael Kaye - Last Updated: 24/04/2025
If you’re considering a part-exchange scheme, the chances are you’re looking for a quick sale of your property.
Take it from us that you’re not alone there—the stresses that come with selling a house can be enough to drive you up the walls within it, but part-exchange is an option that can offer a little respite.
For all its pros, it doesn’t come without its cons, of course, so we’re here to help you make the best decision on your property sale. This guide delves into the advantages and disadvantages of part-exchange schemes, how they work, how they compare to other sale methods and which seller circumstances they might suit.
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What is part-exchange on a house?
A part-exchange on a property is a way to trade in an existing property as a partial payment for another one from a developer. It’s seen as a good way to use the equity in your home to save time and reduce the risks involved with traditional house sales, such as buyers pulling out and chains breaking down.
Major developers in the UK like Taylor Wimpey, Barratt Homes, Persimmon and Bellway offer part-exchange schemes for buyers, but availability can depend on your location. It’s worth checking with smaller, local developers as well as the larger, national ones if you’re serious about part-exchanging your home—they may be interested in a direct exchange if they know you’re genuinely interested in one of their new builds, which could save you the stress of putting your own property on the open market.
— HomeOwner’s Alliance
Developers like Persimmon rely on your house being in good condition and equivalent to no more than 70% of the value of the new home to proceed with a possible exchange. Any offer you receive will be reflective of the fact that the developers need to sell the property on again and make a profit in the process, so don’t expect an offer close to the market value.
That said, part-exchanging is a popular route for buyers who already own a property because it can be not only convenient, but also a good way to avoid estate agent fees and the unpredictability of selling on the open market.
How does part-exchange work?
The part-exchange process might differ slightly from developer to developer and, indeed, location to location, but the first point comes down to what you have to offer as the homeowner.
If you own any of the following types of property, developers will likely be interested in a part-exchange scheme with you. Don’t forget, though, that they’ll expect the property to be in good condition before entering into any kind of negotiation with you:
Detached houses: Often spacious with private gardens, ideal for families.
Semi-detached houses: A middle ground between detached and terraced houses, sharing one wall with another home.
Terraced houses: Shared walls with neighbouring properties on both sides, often found in urban areas.
Maisonettes: Multi-storey homes, usually with a small footprint, but more vertical space.
Bungalows: Single-storey homes, popular among retirees and those seeking easier mobility within their living space.
Studio apartments: Compact, open-plan living spaces suitable for single occupants or couples.
One-bedroom apartments: Offering more privacy with separate living and sleeping areas.
Apartments with two or more bedrooms: Ideal for small families or those needing extra space.
Some developers also offer the option to customise certain aspects of the home design, allowing for personalised layouts and finishes, including:
Eco-friendly homes: Properties built with sustainable materials and energy-efficient designs, appealing to environmentally conscious buyers.
Luxury properties: High-end homes with premium features, often located in desirable areas with additional amenities like swimming pools, large gardens and proximity to exclusive facilities.
Now you know how it works and where you might stand, let’s take a look at how a typical part-exchange scheme might play out for a property owner like you.
A step-by-step guide to property part-exchange
1. Eligibility assessment
The buyer/homeowner fills in an online form and has a phone consultation with a developer.
What’s expected of the buyer: Be upfront and honest about property value, condition, history, debts and equity.
2. Home visit
The developer or an estate agent they hire assesses the suitability of the property for part-exchange and subsequent resale.
What’s expected of the buyer: Provide access to the property so a full inspection can take place.
Note: If the home’s worth exceeds 70% of the new build’s price, the developer will likely turn down a part-exchange.
3. Provisional offer
The developer will make a verbal offer and follow it up with a professional survey to confirm the property’s condition.
What’s expected of the buyer: Consider the offer and decide whether or not to proceed—check for any ‘no obligation’ points in the terms and conditions before enquiring.
4. Financial and legal checks
The developer will conduct essential checks on credit and equity gaps for affordability and legal reviews to verify ownership.
What’s expected of the buyer: Be sure the gap between the value of the home to be exchanged and the cost of the new build can be covered—developers will need proof that buyers can pay in full, e.g. with additional cash or a larger mortgage.
5. Choosing and securing a home
The buyer will pick an eligible new build for part-exchange and arrange finances to pay for it.
What’s expected of the buyer: Put down a deposit and get pre-approved finance if necessary to speed the process up—be sure to carefully consider the new build valuation by comparing size, rooms, garden, location etc.
6. Finalising valuations
The developer will arrange for a RICS surveyor to value the home for exchange and will typically cover the cost.
What’s expected of the buyer: Review the report to understand the valuation and check for any issues highlighted by the surveyor. If the RICS valuation shows serious defects, the developer might not accept a property without a larger discount.
Note: Consider instructing a RICS surveyor for the new build to ensure a fair price that isn’t impacted by the “new build premium.”
7. Formal offers and negotiations
The developer will make a formal offer at around 80-90% of the home’s value and lay out the timeline for the exchange.
What’s expected of the buyer: Exercise the right to negotiate, including additional incentives like covering legal costs, providing appliances and offering cashback if the home sells on for more than the agreed valuation.
8. Arranging finance
The buyer will sort out the finance options to cover the gap between the old home’s value and the new build’s price.
What’s expected of the buyer: Decide on payment options, including using equity and savings and securing a mortgage agreement in principle (AIP) early.
9. Conveyancing and completion
The buyer will consult their solicitor about essential conveyancing (7-8 weeks) and agree a timeline for completion with the developer.
What’s expected of the buyer: Get clarity from the developer about when the new build will be ready and factor in any possible delays.
Note: A ‘delayed completion’ will mean a moving date getting pushed back, so buyers should bear this in mind when considering their selling options.
10. Handover and property marketing
The buyer/homeowner and the developer will agree on the handover and proceed with organising viewings of the house to be exchanged.
What’s expected of the buyer: Grant the developer reasonable access for viewings if still occupying the house and, if contractually obliged, carry out any minor repairs beforehand.
If you’re a homeowner looking for a part-exchange option, there are a couple of things to consider before starting the process. Certain houses, such as ex-council properties or those in less desirable locations, might not be accepted by developers. Moreover, many developers insist that the new build you’re purchasing is at least 30% more expensive than the home you want to exchange.
Top tip for part-exchange: Get a full list of part-exchange criteria from a developer before getting in too deep—the process is not the best fit for everyone, so it’s important to know exactly where you stand from the beginning.
What can affect part-exchange schemes?
Before we move on to the pros and cons of house part-exchange, we’ll take a quick look at the factors that can affect such a deal:
| 1. Location | House prices and market conditions vary widely across the UK. Properties in high-value areas like London and Bristol will be more appealing as part-exchange options to developers because they know there’ll be interest from buyers. Better part-exchange offers tend to appear in higher-value areas—for example, in Leeds, a part-exchange developer may offer a higher percentage of the average house price of £340,737 in the affluent area of Horsforth compared to £209,444 in the less affluent area of Gipton. |
| 2. Property market stability | Everything from employment rates to consumer confidence can affect the market—developers are more likely to offer favourable part-exchange terms as the risk associated with selling homes decreases. |
| 3. Supply and demand | Low interest rates can increase demand and make new build developers more appealing, so developers may be less inclined to accept part-exchange houses if they know their homes will sell anyway. Conversely, if they’re operating in a market with fewer buyers, they may offer more competitive deals to secure properties quickly. |
| 4. Political climate | The UK housing market faced significant challenges under the previous government, with a shrinking supply of affordable housing and lengthy planning processes leading to a scarcity of new developments. This scarcity has caused some part-exchange companies to adopt stricter criteria for eligibility. The new Labour government’s proposed reforms aim to implement a more strategic approach to land designation and development, promoting orderly developments that benefit the community, which could positively impact part-exchange schemes by providing more predictable and favourable conditions for new build homes. |
Is part-exchange worth it?
Your first port of call when trying to determine if part-exchange is worth it is to understand your position as a seller.
As long as you’re the owner (not part-owner or renter, obviously) of your home, it doesn’t need significant repairs and it’s worth 70% of the new build’s value or less, you should be in a good place to engage with a developer. Check that any given developer is actively building in your area so you can be more confident that they’ll be interested in your home as a part-exchange.
The main thing to remember is that developers are businesses that need to turn a profit on the properties they resell, so you probably won’t get an offer of 100% market value for your house. You might be better off going down the open market route if you want to get more for your home, but that comes with its own risks and frustrations, of course.
Here’s an idea of how a part-exchange scheme can compare to other selling and buying methods:
| Estate Agent | Part-exchange Scheme | Auction | Cash House Buyer | |
|---|---|---|---|---|
| Speed | ✖ Can take over 56 weeks to sell. | ✖ Can take up to 12 weeks to sell. | ✖ Can take up to 10 weeks to sell. | ✓ Sell your house in as little as a week. |
| Flexibility | ✓ Can tailor service to you. | ✖ Service is tailored to developer. | ✖ Designed for a cold, quick sale. | ✓ Can tailor service to you. |
| Price | ✓ Receive full market value or more. | ✓ Sell houses for 70% of market value, but also get a new build. | ✖ Get as little as 50% of your home’s value. | ✖ Sell house for 75% to 85% of market value. |
| Risks | ✖ High risk of chain break. | ✖ High risk of the deal falling through, or you not meeting criteria. | ✖ No guaranteed sale. | ✓ Guaranteed house sale. |
| Costs | ✖ 3% estate agent commission + legal fees. | ✖ Legal fees. | ✖ 2-5% of property value in fees. | ✓ All costs covered. |
| Amount you pay | £1-5k (1-3% Commission) | £1-2k | £2.5-5k | £0 |
The part-exchange route tends to work best if you’re upgrading to a more expensive home and you want to move quickly, but you still need to consider the costs involved. For example, you might gain from the convenience of avoiding lengthy sales processes and hefty fees if you sell your house without an estate agent, but these benefits might not outweigh the profit you could achieve on the open market (if you’re willing to wait).
If your journey has been plagued by broken chains and unreliable buyers, you might be more tempted down the part-exchange path, especially if it means simply getting it done and dusted.
Let’s take a look at the advantages and disadvantages of part-exchange to help make it easier to decide.
The pros and cons of part-exchange
| Pros | Cons |
|---|---|
| ✔ No estate agent fees | ✖ Sometimes difficult to secure mortgages against a new build as they can be considered as depreciating fairly quickly |
| ✔ Avoid a property chain | ✖ You are limited as to which property you can choose—usually smaller or with less outdoor space |
| ✔ Get a brand-new property | ✖ No guarantees that your current property will be accepted |
| ✔ Minimal stress | ✖ Building might not be completed in the timescale specified, by which time your current property may have been sold |
| ✔ Save weeks or even months on the whole sales process | ✖ You won’t get near market value for your property |
| ✔ Certain perks, such as custom fixtures and fittings or being exempt from stamp duty | ✖ Developer might not be part of The Consumer Code for New Homes, approved by the Chartered Trading Standards Institute, or on the register of developers with the New Homes Quality Board (NHQB) |
| ✖ Every developer is different, so every set of terms and conditions is different—you’ll have to scrutinise the small print | |
| ✖ You’ll need to sort a (very important) snagging survey on your new build to identify defects and protect your investment |
Should I part-exchange my property?
Whether you can part-exchange your property or not is one thing. Whether you should or not is another—and it depends entirely on your personal circumstances.
Naturally, part-exchange isn’t for everyone, but it can be a great option if you’re looking to bag yourself a bigger house quickly and efficiently.
If time is of the essence, your best bet is to weigh up house part-exchange vs a buying company for a cash sale—you might not get full market value, but these are the two quickest routes to completion by far.
This was actually our first time…
“This was actually our first time selling a home and I'm glad that we chose The Property Buying Company. They held our hand throughout the journey and took care of everything. “It was nearly stress-free or as stress-free as it could be, [so] I'm happy that we chose them for our sale.”
Date of experience: November 26th, 2024
Explore your options and get quotes for both—going with developers means you get a brand-new property as part of the deal, while going with cash buyers means you get a better chance of receiving more for your current home because of the profit margin built into the developers’ offers. Get in touch with The Property Buying Company for your free cash offer today.
Frequently Asked Questions
Can I part-exchange my house for a cheaper one?
It is possible to part-exchange your property for a cheaper one, but, on the whole, developer schemes tend to stipulate that the home you’re buying is at least 30% more expensive than the one you’re selling. This is because their part-exchange schemes are designed for their benefit so they can make a profit as a business, so it’s important to read the terms and conditions of any such scheme so you can understand and assess your options.
Can I get 100% market value for my home on a part-exchange scheme?
The valuations you get from developers are often based on the resale price of your home, i.e. the profit they’ll make from it, and not the asking price, so you might find they are typically lower than your expectations. Even if they say they’ll give “100% market value,” what they offer will rarely match what you have worked out to be the true worth of your home, so be sure to check and compare part-exchange schemes in great detail before committing yourself to one.
Can I negotiate with property developers on a part-exchange scheme?
Yes, you are well within your rights to negotiate with property developers over a part-exchange deal. Such schemes are devised by the property developers themselves, so they are always structured to benefit them. Take your time to understand the value of your current home and do your research to see where the new build you’re after sits when compared to the regional or national averages. Both parties want a good deal and no offers are set in stone, so if a developer has offered you less than you want for your home, you can try to negotiate a better deal with them.
Do I need to pay stamp duty on a part-exchange new build property?
Yes, as with any other kind of house purchase, you’ll be required to pay the relevant amount of stamp duty on a new build property from a developer. Be sure to check the government’s stamp duty rates, which were recently updated in 2025, to find out how much you’ll be liable to pay. Some developers may offer to pay your stamp duty to secure a deal, but this may be less likely if you are buying through a part-exchange scheme.
Can I buy through a part-exchange scheme without a mortgage?
Yes, as long as you have the funds to pay for the new build in full, including the contribution from your current house, you should be able to buy a new build from a developer via a part-exchange scheme. Check the terms and conditions in detail, though, before getting too deeply into any such deal, as every developer is different.
Edit Log
24/04/2025 - Content rewritten by Raphael Kaye
24/04/2025 - Content updated in line with Editorial Guidelines (Reviewed by Mathew McCorry)
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