A Guide to Property Part-Exchange
- Understand the process
- Weigh up the pros and cons
- Decide if it's right for you
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Content Written By: Raphael Kaye - Last Updated: 18/06/2026
If you're considering a part-exchange scheme, the chances are you're looking for a quicker, more straightforward way to move home.
Selling a property on the open market isn't always easy. Between arranging viewings, managing a property chain and dealing with the uncertainty of a sale falling through, the process can often take longer and be more stressful than expected.
That's why part-exchange has become an increasingly popular option for homeowners looking to simplify their move. For many sellers, the appeal is obvious: there are no viewings to manage, no chains to worry about and far less risk of a buyer pulling out at the last minute. However, those benefits often come at the expense of achieving the highest possible sale price.
In this guide, we'll explain how property part-exchange works, who it suits, how much you can expect to receive and whether it's worth considering compared to other ways of selling your home.
What is property part-exchange?
Property part-exchange is a process where the value of your existing home is used as part payment towards another property.
The concept is similar to part exchanging a car. Instead of selling your current property on the open market, the provider purchases it directly and deducts the agreed value from the cost of the property you're buying. In the UK, most part-exchange schemes are offered by housebuilders and are designed to help buyers move into new-build homes.
Part-exchange has become increasingly popular because it removes many of the common frustrations associated with moving home. Rather than waiting for an offer, dealing with a property chain or worrying about buyers withdrawing, homeowners can often secure both the sale and purchase at the same time.
That convenience does come at a cost, though. The provider will typically offer less than full market value because they need to cover their own costs and make a profit when they resell the property.
How does house part-exchange work?
The part-exchange process might differ slightly from developer to developer and location to location, but the first point comes down to what you have to offer as the homeowner.
It doesn’t matter what property type you own; developers will likely be interested in a part-exchange scheme with you. Don’t forget that they’ll expect the property to be in good condition before entering into any kind of negotiation with you.
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.
Who can use a part-exchange scheme?
Part-exchange schemes are designed for existing homeowners, although eligibility varies depending on the provider. You may be suitable for part-exchange if:
You own a property with sufficient equity
Your property is in reasonable condition
Your home is considered easy to resell
You're purchasing through a qualifying scheme
Not every property will be accepted. Homes requiring significant renovation, properties built using non-standard construction methods, or homes located in areas with limited buyer demand can be more difficult to part-exchange. This is why it's important to understand the provider's requirements before committing to the process.
What affects a part-exchange offer?
No two part-exchange offers are the same. The amount you're offered will depend on a combination of factors, including the property itself, local market conditions and the provider's criteria.
Location: Often one of the biggest influences on value. Properties in areas with strong demand and healthy transaction levels are generally more attractive because they're easier to resell.
Property Condition: A well-maintained property is likely to attract a stronger offer than one requiring substantial repairs or modernisation. Providers need confidence that they can resell the property quickly and efficiently.
Property Type: Standard property types such as detached, semi-detached and terraced houses are often easier to resell than highly specialised properties. As a result, they may attract stronger offers.
Market Conditions: The wider housing market also plays a role. In a buoyant market, providers may be willing to offer more competitive terms because they expect to resell properties quickly; in slower markets, offers may be more cautious.
Provider Criteria: Every provider has its own approach to risk. Some may focus on particular locations or property types, while others may impose stricter value limits or eligibility requirements.
How much will you get for your property?
One of the most common questions homeowners ask is whether they'll receive full market value through a part-exchange scheme. In most cases, the answer is no.
The provider is taking on the responsibility of purchasing, holding and reselling your property. To account for those costs and risks, offers are generally lower than what you might achieve through a traditional estate agent sale.
The exact difference varies depending on the provider, local market conditions and the property itself. However, it's important to look beyond the headline figure. Part-exchange can help you avoid:
Estate agent fees
Ongoing mortgage payments while waiting for a buyer
Property chain delays
Failed sales
Multiple viewings and negotiations
For many homeowners, the certainty and convenience of a guaranteed buyer can outweigh the difference in sale price.
Pros and cons of property part-exchange
Like any property selling method, part-exchange has advantages and disadvantages. Whether it's the right option for you depends on your priorities, circumstances and how quickly you need to move.
| 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 |
Is part-exchange worth it?
One of the biggest attractions of part-exchange is certainty. According to property data provider TwentyCi, almost one in four agreed property sales failed to complete in early 2026, highlighting the risks that can come with selling on the open market.
If achieving the highest possible sale price is your priority, selling through an estate agent will usually provide the greatest opportunity to maximise your property's value. However, if certainty, convenience and speed are more important, part-exchange can be an attractive alternative.
Part-exchange vs selling on the open market
Before committing to a part-exchange scheme, it's worth comparing it against a traditional house sale.
| Consideration | Part-Exchange | Open Market Sale |
|---|---|---|
| Speed | Generally faster | Can take several months |
| Estate Agent Fees | Usually not required | Usually payable |
| Property Chain | No chain on your sale | Chain risks remain |
| Sale Price | Typically below market value | Potentially full market value |
| Viewings | Usually not required | Multiple viewings often needed |
| Certainty | Higher | Lower |
| Buyer Risk | The developer is the buyer | The buyer can withdraw |
Alternatives to property part-exchange
Part-exchange is not the only way to avoid the challenges associated with a traditional house sale. If you’re looking to sell your home, there are a few other avenues you could consider:
Assisted move schemes
Many developers offer Assisted Move schemes as an alternative to part-exchange. With Assisted Move, the developer helps you market and sell your property through an estate agent, often contributing towards fees while you secure your new-build home.
This can allow you to achieve closer to full market value while still benefiting from support throughout the process.
Sell through an estate agent
A traditional estate agent sale typically offers the best opportunity to maximise your property's value. However, this route can involve longer timescales, chains, viewings and greater uncertainty.
Sell house at auction
Property auctions can provide a faster route to sale than the open market, particularly for properties requiring renovation or attracting investor interest. However, final sale prices can be difficult to predict, and auction fees may apply.
Cash house buyers
Selling via a cash house buyer is one of the fastest ways to sell a property. Unlike part-exchange, you do not need to purchase a new-build home, and sales can often be completed in a matter of days or weeks.
While offers are usually below full market value, many sellers value the speed, certainty and flexibility that a cash sale provides.
Should I part-exchange my property?
Part-exchange can be a great option if you're buying a new-build home and want to avoid the uncertainty of selling on the open market. It offers convenience, speed and the security of having a guaranteed buyer, but that simplicity often comes at the cost of a lower offer than you might achieve through a traditional sale.
If your priority is completing quickly, it's worth comparing part-exchange with a cash house buying company before making a decision. Both can significantly reduce delays and help you avoid a property chain, but they work in different ways.
The right option depends on your priorities. If you're set on a new-build, part-exchange could be the simplest route. If flexibility, speed and maximising your offer are more important, requesting a no-obligation cash offer can help you understand all of your options before deciding.
Get your free, no-obligation cash offer from The Property Buying Company today and compare it alongside any part-exchange offer you've received.
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.
Can I part-exchange an older property?
Potentially. Age alone does not usually prevent a property from being accepted as part of a scheme. However, developers will consider factors such as condition, construction type, marketability and location.
Properties requiring extensive renovation or those built using non-standard construction methods may be more difficult to part-exchange.
How long does a property part-exchange take?
The exact timescale varies between developers, but part-exchange is generally quicker than selling on the open market.
Once a property has been valued and an offer accepted, the process can often be completed within a matter of weeks. However, legal work, mortgage arrangements and new-build construction schedules can all affect completion dates.
Many buyers choose part-exchange specifically because it provides greater certainty around moving timescales.
What happens if my property doesn't meet the developer's criteria?
If your property is not suitable for part-exchange, the developer may suggest an alternative option such as an Assisted Move scheme. This allows you to market your property through an estate agent while still reserving your chosen new-build home.
Alternatively, you may wish to explore other routes such as selling through an estate agent, using a property auction or obtaining an offer from a professional cash house buyer.
Edit Log
23/09/2025 - Link to NHQB New Homes Quality Code updated by Mathew McCorry
24/04/2025 - Content rewritten by Raphael Kaye
24/04/2025 - Content updated in line with Editorial Guidelines (Reviewed by Mathew McCorry)
18/06/2026 - Content updated by Raphael Kaye
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