What are the risks of buying a new build with an unadopted highway?

Buying a new build property is an exciting prospect, but it can come with its own unique set of considerations. One such issue that often surfaces, and can cause a good deal of head-scratching, is when the highway serving your new home has not yet been 'adopted' by the local authority. This might sound like a minor detail, but it can have significant implications for you as a homeowner.

What is an unadopted Highway?

An unadopted highway is essentially a road, path, or public space that has not been formally taken over and maintained by the local council or highway authority. In the UK, most roads are adopted, meaning the local authority is responsible for their upkeep, including repairs, lighting, and drainage. When a highway is unadopted, these responsibilities fall elsewhere, typically on the developer or, in some cases, the residents themselves.

Why do highways remain unadopted in new builds?

For new build developments, it is common for roads to initially be unadopted. Developers construct the roads, footpaths, and associated infrastructure as part of the new estate. The process for a local authority to adopt these roads involves a formal agreement, often under Section 38 of the Highways Act 1980.

Under a Section 38 Agreement, the developer commits to building the roads to a specific standard set by the local authority. Once completed and deemed satisfactory, the local authority then takes over responsibility for future maintenance. However, this process can be lengthy. Sometimes, adoption is delayed because the developer has not completed the roadworks to the required standard, or they might be waiting for the entire development to be finished before handing over the infrastructure.

What are the risks of buying a new build with an unadopted highway?

While an unadopted road might not immediately seem problematic, it can lead to several headaches for homeowners:

Maintenance Costs: If the road is not adopted, the local authority will not maintain it. This means that any repairs, such as potholes or drainage issues, could become the financial responsibility of the homeowners on the estate. This can lead to unexpected and potentially substantial costs.

Access Issues: Poorly maintained roads can affect access to your property, impacting vehicle wear and tear, and potentially causing safety concerns.

Insurance Complications: Some insurance providers may view properties on unadopted roads differently, potentially affecting premiums or coverage.

Difficulty Selling: When you decide to sell your property, an unadopted road can be a red flag for potential buyers and their conveyancers. It might lead to delays or even a reduction in your property's value, as buyers factor in the potential future costs and liabilities.

Lack of Public Services: While less common, there can sometimes be delays or issues with public services such as street lighting or refuse collection if the road status is unclear.

How can you find out if a highway is adopted?

The best way to determine the adoption status of a highway is through the conveyancing process. Your conveyancer will conduct thorough searches, including local authority searches, which will reveal whether the roads serving your property are adopted or subject to a Section 38 Agreement.

A good conveyancer will also make specific enquiries with the developer and the local highway authority. This is a crucial part of your due diligence when buying a new build, ensuring you have a clear picture of the property's legal standing. Moving Compared can help you find expert conveyancers who specialise in new build properties, ensuring these critical checks are carried out diligently.

What steps can you take if the highway is unadopted?

If your conveyancer discovers that the highway is unadopted, there are several steps you can take to protect your interests. Your conveyancer will be your primary guide. They should:

Review the Section 38 Agreement: If one exists, they will examine its terms, including the timeline for adoption and the developer's obligations.

Check for a Bond: Developers are often required to put a bond in place with the local authority. This bond acts as a financial guarantee that the roadworks will be completed to standard, even if the developer ceases trading. Your conveyancer should confirm the bond is in place and adequate.

Enquire about Delays: Ask the developer for reasons behind any delays in adoption and for a clear timeline for when they expect the process to be completed.

Advise on Future Liabilities: Your conveyancer will explain any potential future liabilities you might face if the road remains unadopted.

Should You Consider Indemnity Insurance?

In some cases, if adoption is significantly delayed or uncertain, your conveyancer might recommend an indemnity insurance policy. This policy can protect you against financial losses should the local authority demand contributions for road maintenance in the future. It is a common solution to mitigate the risks associated with unadopted roads, offering peace of mind.

How Can Moving Compared Help?

Understanding the intricacies of property transactions, especially with new builds, can feel overwhelming. Moving Compared is here to simplify the process, connecting you with trusted professionals who can navigate these complexities.

Conveyancing: Our platform allows you to compare quotes from experienced conveyancers who are well-versed in new build purchases and the specific issues like highway adoption. They will perform all necessary checks and advise you on the best course of action.

Surveying: While not directly related to highway adoption, a comprehensive survey can provide an overall picture of your new build's construction quality, which is always a wise investment.

Removals: Once all legal hurdles are cleared and you are ready to move, Moving Compared can help you find reliable removal companies to ensure a smooth transition into your new home.

By using Moving Compared, you gain access to a network of professionals, ensuring you have the right support to make informed decisions and move with confidence.

Buying a new build with an unadopted highway doesn't have to be a deal-breaker, but it does require careful attention. By understanding the potential issues and engaging expert conveyancing services, you can ensure your dream home doesn't come with unexpected road bumps.