French VEFA vs UK Off-Plan: Two Similar Systems, Different Approaches

The Core Philosophy

France’s VEFA system (Vente en l’État Futur d’Achèvement) is built around buyer protection through staged payments and statutory guarantees. It’s designed to spread your financial commitment across the construction timeline and ensure completion even if things go wrong.

Check our New build properties in the French Alps​

The UK off-plan approach offers flexibility through contract terms and robust warranty schemes like NHBC, which controls 80-90% of the new-build market. Both systems work brilliantly—they just take different routes to protect and benefit buyers. In 2024-2025, UK housing programs delivered 36,872 new homes, up 12% year-on-year, demonstrating the market’s continued strength.​

Getting Started: The Commitment Process

In France, you reserve first with a deposit capped at 5% if the contract is signed within one year of delivery, or just 2% if signed 1-2 years before completion (can be as low as 1,500€ with some developers). You then get a statutory 10-day cooling-off period after signing the contract pack. This built-in breathing space lets you review everything with your advisors before you’re fully committed—a nice safety feature for international buyers.​

The UK process moves quickly once you’re ready: reserve with a fee (typically £500-£2,000), then exchange contracts when you’re certain, usually paying 10% at exchange. The speed can work to your advantage in competitive markets, and many developers offer strong early-bird incentives to reward decisive buyers.​

Key advantage: France gives you a statutory pause button with deposits capped at 2-5%; the UK rewards commitment with pricing benefits but requires 10% up front.

Payment Flexibility and Staged Structure

VEFA’s staged payment structure is genuinely clever. Rather than one large payment, your funds are released as construction milestones are hit. The typical breakdown looks like this:​

• 5% deposit at reservation

• 35% on completion of foundations

• 70% when de-commissioned (structural works finished, exterior walls complete, roof laid, terraces finished)

• 95% upon completion of work

• Final 5% when property is made available (can be held if disputes exist)

Some developers use alternative schedules like 20% at foundation, 15% when structure complete, 20% when weatherproof, then 15% at completion. Either way, you’re spreading €200,000-€300,000+ purchases over 12-24 months aligned with visible progress.​

UK off-plan deals usually involve 10% at exchange, then the balance at completion. This simplicity works beautifully if you’re securing a mortgage or have capital ready to deploy. The average UK exchange deposit lost in forced withdrawals can reach £23,000, highlighting why securing solid financing matters.​

Key advantage: France offers automatic staged payments reducing capital risk; the UK offers negotiating flexibility and financing simplicity.

Transaction Cost Savings

French VEFA notary fees are significantly lower than those for resale properties. For a €200,000 new build, you’ll pay approximately €4,130 in total notary fees (around 2-3% of purchase price), broken down as:​

• Land registration tax (0.715%): €1,430

• Notary’s fees (≈0.80%): €1,600

• Disbursements and admin fees: €900

• Real estate security contribution: €200

For a €300,000 purchase, total fees are around €5,395. Compare this to 7-8% notary fees on resale properties—that’s a saving of €10,000-€15,000 on a €300,000 purchase.​

UK new builds avoid certain stamp duty complications and offer competitive conveyancing fees due to market competition among solicitors specialising in new-build transactions.​

Key advantage: France offers substantial notary fee savings (2-3% vs. 7-8%); both systems reduce transaction costs compared to resale.

Mortgage Protection and Financing

Include a mortgage condition (condition suspensive d’obtention de prêt) in your VEFA contract, and you can exit cleanly with your deposit back if financing falls through. It’s a strong safety net that removes mortgage risk entirely from the equation.​

UK buyers work closely with mortgage brokers to secure agreements in principle early. Following the base rate cut to 4.0% in August 2025, national housebuilders reported 5-6% increases in reservations, with mortgage approvals for house purchases recovering to 65,352 in July 2025. The competitive UK mortgage market means you often get better rates and terms for new builds than resale properties.​

Key advantage: France eliminates mortgage risk through statutory conditions; the UK offers competitive new-build financing in an improving rate environment.

Customisation and Specification

Both systems shine here. VEFA properties let you customise finishes, floor coverings, partitions, and fittings to suit your taste. The developer provides a formal specification pack that’s legally binding, giving you clarity on exactly what you’re getting. In France, you can also make larger modifications, such as removing a wall. It is called the TMA and can be done until construction reaches the stage where that modification can still be done.​

UK developers typically offer extensive customisation through “choices” appointments—selecting kitchens, bathrooms, flooring, and sometimes even layout modifications. The options can be impressive, especially with premium developers, and you’re getting a brand-new home built to the latest Building Regulations.​

Key advantage: Both systems offer excellent customisation—it’s a win-win.

Construction Warranties and Long-Term Protection

France’s statutory warranty trio is world-class and non-negotiable:​

• 1 year: Perfect completion warranty covering visible defects and snags

• 2 years: Equipment and fixtures warranty

• 10 years: Decennial insurance covering structural defects that compromise building solidity or fitness for use

The decennial insurance is a single-premium policy collected at construction outset, covering every incident over a full decade from Acceptance of Works. Importantly, it remains valid even if the builder defaults or terminates their insurance, because it’s paid upfront.​

UK new builds come with comprehensive warranties from providers like NHBC (controlling 80-90% of the market), Premier Guarantee, or LABC. NHBC’s Buildmark covers:​

• Your deposit against developer insolvency

• 2-year builder warranty for defects

• 8 years of structural protection (years 3-10)

The warranty extends to subsequent owners, and UK lenders require these warranties for mortgage approval.​

Key advantage: France gives uniform 10-year statutory protection from day one; the UK offers 80-90% market coverage through established warranty providers with 2+8 year structures.

Deposit Protection Statistics

French VEFA deposits are legally capped and held in special accounts opened in the buyer’s name at a bank or notary. No additional amounts can be demanded before signing the finalised sales contract. If the sale price eventually exceeds 5% of the budgeted price, you can withdraw and recover your deposit. In practise, when you sign the reservation contract at a given price, it is never increased between the moment you sign the reservation and you sign the deeds. ​

In the UK, research by Butterfield Mortgages found that three in 10 buyers surveyed had lost their exchange deposit through forced withdrawal, with the average loss being £23,000 based on average UK property prices. However, NHBC protection covers deposits against developer insolvency, which has protected thousands of buyers.​

Key advantage: France caps deposits at 2-5% by law (we have some new developments where deposits can be as low as €1,500)  with clear refund rules; the UK requires 10% but offers insolvency protection through warranty schemes.

Market Scale and Activity

The UK housing market shows strong recovery momentum. Housing starts in the year to Q1 2025 were up 25% compared to the cycle low in Q2 2024. Between April 2024 and March 2025, Homes England programs delivered 38,308 new housing starts and 36,872 completions—a 12% increase in completions year-on-year. Of these, 77% (28,370 homes) were affordable housing completions.​

France’s VEFA market remains strong in prime locations, with properties in desirable ski and coastal markets often appreciating during the construction period itself.​

Key advantage: Both markets show robust activity with strong completion rates and appreciation potential.

The Professional Framework

France’s notary system is standardised, governmental ( as in many Latin countries like Spain and Italy), and handles all legal work. For a €200,000 property, you’ll pay approximately €1,600 in notary emoluments (0.80%), with fees calculated on regulated sliding scales. The notary checks title, planning, and legality as an impartial public officer representing both parties. Also, new builds in France are supported by reduced legal fees and stamp duty. So you pay between 2% and 3% depending on the property price, instead of 7% or 8% for older properties.​

UK solicitors compete for your business, giving you choice and often very competitive conveyancing fees for new builds. Many specialise exclusively in new-build conveyancing and know precisely what to look for in developer contracts (soon to be replaced by AI, though).​

Key advantage: France offers standardisation with transparent pricing (≈0.80% emoluments); the UK provides a competitive choice.

Capital Appreciation Potential

Both systems offer excellent appreciation potential. VEFA properties in desirable French markets often increase in value during the construction period itself (expect plus 10% on average), especially in prime ski or coastal locations. You’re locking in today’s price for tomorrow’s delivery, with the added benefit of paying in stages.​

UK off-plan properties similarly benefit from market growth during construction. With housing starts up 25% year-on-year and mortgage approvals recovering to 65,352 monthly, areas with major infrastructure projects or regeneration can see substantial gains. You’re buying at pre-completion prices in improving locations—that’s the core attraction.​

Key advantage: Both systems let you benefit from market appreciation during the 12-24 month build period while locking in current pricing.

The bottom line? Both VEFA and UK off-plan purchases are proven, well-protected routes to owning brand-new property. France offers 2-3% notary fees (versus 7-8% resale), deposits capped at 2-5%, and uniform 10-year statutory warranties. The UK provides competitive mortgage markets, 80-90% warranty coverage through established providers, and a market delivering 36,872+ completions annually. Choose based on location and opportunity—both systems are designed to work for buyers, with robust protections and clear financial advantages over resale properties.