Those who have a gripe with their new-build home will soon have a new way to raise a complaint, after a new independent body launched to champion buyers’ interests.
The New Homes Quality Board launched officially yesterday, and said it wanted to put pressure on developers to deliver quality homes and treat their customers well.
The NHQB plans to create a new industry code of practice to ‘place considerably more responsibility on developers to deliver quality homes and better consumer outcomes’.
A new independent body aims to improve protections for people buying new-build homes
It said the New Homes Code, which is currently in the consultation process, would require developers who sign up to have effective complaints procedures in place.
For example, it would require them to specify a timeline within which they would have to address any issues with a new home to the consumer’s satisfaction.
The organisation also wants to create an ombudsman for new homes, which it said would support buyers that had disputes with developers.
For example if a developer did not remedy an issue with a buyers’ home within a specific timeframe, they would potentially be subject to a referral to the ombudsman.
The code and ombudsman service will cover buyers through the whole process of buying a new build home, from reservation, through the sales process and up to two years post-occupation.
However, NHQB told This is Money that one of its most important aims was filling the gap in service for during post-occupation period, and helping to support customers with snagging issues.
Home buyers cannot contact the NHQB just yet, however, as its services are not expected to launch until later this year.
When it does, it will be free to use for home buyers.
It will be paid for by the house building industry, probably with an annual registration fee and a levy based on how many homes they sell.
It is chaired by MP for Dover & Deal, Natalie Elphicke, who is also director of the Housing & Finance Institute. She said: ‘The new arrangements will lead to a step change in how new homes are built and sold and how customers are treated.
‘A new home is the most important purchase most of us make and it is essential that buyers have confidence in both the product and the processes in place to support them.’
The NHQB has a board made up of representatives from consumer bodies, housebuilders, warranty providers and the finance sector.
These include Douglas Cochrane, who spent 40 years as head of housing development at Lloyds Banking Group, Gillian Cooper from Citizens Advice, and Jennie Daley from housebuilder Taylor Wimpey.
What are your options if your new-build is not up to scratch?
There are several avenues for complaints if your new-build home is defective
Until the new code and ombudsman service comes into force – probably later this year – these are the options for homeowners who are unhappy with the quality of their new build.
1. Use your warranty
If your new-build is less than 10 years old, it is almost certainly covered by a warranty – even if you are not the first owner. This is likely to be the Buildmark policy provided by the National House Builders Council, but others include BLP, LABC, Premier Guarantee and Checkmate.
Warranties usually cover most defects for the first two years, so your house builder should be your first port of call during this time. The warranty usually switches to only covering major problems such as structural issues or leaks from year three until year 11. After that, you have to rely on your own insurance policy. Be wary of trying to fix problems yourself while you are still under warranty, as this could invalidate it.
2. Get a snagging survey
Before the first two years is up, you may want to undertake a thorough check of your home and make sure any outstanding issues are sorted. One way to do this is by paying for a ‘snagging survey’, where a professional surveyor will inspect your home and point out problems you might not have spotted. Presenting this report to your house builder may encourage them to take action.
A snagging survey could reveal construction issues that you missed
3. Escalate to your warranty company
If you don’t feel that your house builder has addressed a problem satisfactorily, you can approach the company that your warranty is with. Make sure you keep a record of previous communication you have had with your house builder, as your warranty provider may need to see this.
4. Make an official complaint
If your issue is still not resolved, you have several options. Firstly, you could make a complaint to your warranty provider using their official complaints procedure. You also have the option of making a complaint to the Financial Ombudsman Service, which is free of charge, but may affect your ability to make a court claim later on.
5. Try the Consumer Code for Housebuilders
If your home is covered by a NHBC, Premier Guarantee or LABC warranty, you could also contact the Consumer Code for Homebuilders. This body has a dispute resolution service for home buyers which can make awards of up to £15,000. The scheme applies to complaints made up to two years from the date on the warranty insurance certificate.
6. Take the issue to mediation – or even court
As a last resort, your options would be to go through an alternative dispute resolution or mediation procedure, or to issue a claim in court.
