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How Does Part Exchange Work?

Mar 07, 2025
Buying a House
If you already own your home and want to buy a newly built property, you may have the option of a part exchange. Discover everything you need to know about this scheme in our guide.

What does part exchange mean?

Part exchange is a method by which you can buy a newly built home.
 
A developer will buy your current home at a set price while you buy a new build from them. The set price is deducted from the cost of your new home, and you will then pay the remaining balance. 
 

How does part exchange work on a house?

First, you’ll need to speak with the developer and visit the development you are interested in. An adviser will be able to let you know if they offer part exchange and if you’re eligible for it. 
 
Then, the developer will get independent valuations of your house while keeping your chosen newly built home on hold. Once the developer has made an offer based on these valuations and the price has been agreed, the sale will get underway. 
 
Quite often, the developer will come out and take photos of your home so that they can begin marketing it for sale. They will also explain how your current property must be left, such as removing any rubbish. 
 
The legal process typically lasts between four and six weeks. After that, you’ll be able to exchange and move into your new home as soon as it’s ready. 
 

Who is eligible for part exchange?

There are a few criteria you’ll need to meet to be eligible for part exchange, including:
 
• You must be a homeowner, as part exchange is not available for first-time buyers
• Your current home shouldn’t be more than 80% of the price of the home you want to buy
• Your current home should be kept in good condition 
 

What are the benefits of part exchange?

There are some great benefits of part exchanging your home, such as: 
 
• The process is quicker, as you won’t have to worry about putting your current home on the market
• The developer will make you a guaranteed offer, so you’ll avoid any last-minute negotiations
• There’s no chain, which means there’s less risk involved
• You’ll save money on estate agent fees
• You can stay in your old home until the new one is ready
• The buying and selling process is completed in one easy move, so you won’t have to wait for the other parties to complete
  
Discover our huge range of new homes across the UK and fantastic offers to help you move.
 
Call or visit our Sales Advisers today to get started. 
 

Part Exchange FAQs

  • Some people worry that they will get less than market value for their property, but this isn’t necessarily the case. A reputable developer will get two independent valuations of your home. They will also assess the current market value by looking at comparable properties in the same neighbourhood. They will then make you a fair offer based on these procedures. 
     
    If you decide to sell your home with an estate agent, you could end up with more or less than the actual valuation, depending on demand. 
     
    If you feel uncertain about the terms of part exchange, speak to your solicitor to check the details. 
  • Stamp duty still applies for part-exchange homes over £250,000. 
     
    Stamp duty is calculated based on the market value of the new property you will be purchasing, not the discounted part-exchange price. 
     
    Explore our guide to find out how to calculate the stamp duty on your new home. 
  • You will still be required to pay a deposit on a part-exchange home. 
     
    The part exchange itself will act as a portion of the overall deposit, but it’s not likely to be enough to cover the full cost of your home. You will need to provide an additional deposit on top of the part-exchange value. This is typically 10-20% of the full purchase price of the new home. 
  • At Barratt Homes, our Part Exchange scheme is only available if your current home is no more than 80% of the selling price of the home you want to buy from us. This is up to a maximum value of £500,000. 

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