Retainer before contract exchange

[porkpharm]

Hi

I am just about to exchange on a new build in a very small development and spoke to one of my new neighbours who said builder had still not completed snagging after 6months.
Having heard this i am thinking of holding back a retainer with a date by which the work must be completed by.

What is the usual amount of a retainer - is 5% of purchase price reasonable?

thanks

[NewHomeExpert]

If you can get away with it 5% held back would be fine.
I doubt you will get the keys until you have paid 100%, but it is a good idea though.

[porkpharm]

thanks
will try, buying from smallish co. and heard that someone else managed to keep retainer back so will try it.

[NewHomeExpert]

It is known as "retention" and the house builders hold back 2.5% from their contractors to cover defects that may arise.