The New Homes Quality Board (NHQB) has today (October 4) introduced a new code of practice that will give new build homebuyers increased protections in the event of any issues they have with their new home or disputes with their developer.
The code of practice will put significantly more requirements on builders in terms of how they treat their customers and deal with any complaints, while a new independent ombudsman service will provide redress for customers in the event of a dispute.
Over 100 developers are now registered and are working with the NHQB. The scheme will initially be available in England, Wales and Scotland, ultimately covering the whole of the UK and providing developers that sign with the NHQB and ombudsman branding to display to showcase their involvements to potential buyers.
The government has committed to overseeing the introduction of a statutory ombudsman, and through the Building Safety Act, now has the powers to do so.
Leon Livermore, chief executive of the New Homes Quality Board, said: “Buying a new build home is a massive moment in many people’s lives and it ought to be a happy and memorable experience, but in too many instances in the past that has not been the case. This new framework aims to drive up standards of construction and customer service and puts the buyers’ interest at its centre.”
“Whilst we recognise that the process of building and selling a new build home is a complex one and things can go wrong, in those instances we want to ensure builders respond quickly and customers have access to independent redress.”
“I welcome the fact that over 100 developers have already registered with us. Being registered with the NHQB will provide housebuilders’ customers with confidence in them and their product and I encourage those not yet signed up to do so.”
“Consumers can be assured that when they see our branding, their housebuilder should be working to the new high standards our code demands of them or they can take their case to a strong and independent ombudsman who is able to enforce a resolution if there has been a breach of code.”
“I firmly believe that the new framework will drive up standards, improve the experience and increase consumer confidence, providing benefits for consumers and builders alike.”
The New Homes Ombudsman designate, Alison MacDougall, said: “The New Homes Ombudsman Service (NHOS) will have a strong role to play in ensuring that consumer complaints about new home buying are dealt with independently and effectively. We aim to contribute to the promotion of best practice within the sector, and to identify issues arising from complaints which may merit further consideration across the industry.”
“Consumers can expect to have their issues investigated efficiently and effectively and a number of redress outcomes are available for cases where the NHOS decides that a developer has not met the requirements of the New Homes Quality Code. We are encouraged by the initial industry response to the new code and the establishment of an independent ombudsman and look forward to working constructively with participants to improve the experience of consumers in such a key event in their lives.”
The new code ensures that every aspect of a new home purchase, from the initial visit to the sales office to the end of their two-year warranty, is covered. It also requires developers to have an effective aftercare service in place, one of the biggest gaps in the current arrangements, to deal with any issues as well as a robust complaints process that responds to customers’ concerns in a timely manner and to their satisfaction.
The new code –
- Protects customers, prohibits high-pressure selling; requires any deposits the customer pays to their builder to be protected.
- Requires the developers to provide all relevant information about the home during the sales process – including its tenure and any future management or service charges – allowing them to make an informed decision about their purchase.
- Sets out requirements for a fair reservation agreement, including a ‘cooling off’ period; and sales contract requirements.
- Allows customers to engage a professional to carry out a pre-completion inspection of their home on their behalf.
- Specifies that a home must be ‘complete’, preventing developers from paying customers to move into a new home early.
- Replaces the large number of previous codes, hence simplifying and boosting consumer confidence
Matthew Pratt, group chief executive of Redrow, said: “Our customers have always been at the heart of everything we do. We’re extremely proud to be one of the first volume housebuilders to be implementing the new NHQB code of practice, at the earliest opportunity.
“This is a big step for our industry and one we very much welcome. For us, it’s about continuing to support our customers and giving them the best possible experience of buying and moving into one of our homes.”
“From today, customers visiting all our sites can be assured that they will be fully supported by the new code and we’d urge all other homebuilders to follow suit.
Jason Honeyman, chief executive officer at Bellway, said: “Bellway is one of the largest housebuilders in the UK. We have retained our 5-star builder status from the Home Builders Federation for six years running and always pride ourselves on providing a high standard of quality in our homes and excellent customer service.
“As one of the first housebuilders to sign up to the New Homes Quality Code, we are underlining our commitment to our customers and providing them with the reassurance that when they buy from Bellway, they will receive a quality product, a personal service, and the reassurance of an excellent after-sales service.”
Stewart Baseley, executive chairman of the Home Builders Federation, said: “The requirements of the new code and framework are hugely challenging for businesses, but the industry is absolutely committed to implementing the proposals and the much greater protections they will provide for its customers.”
“HBF initiated the early work that led to the formation of the independent New Homes Quality Board and continues to be supportive of its work.”
“The new arrangements will deliver a step change in the approach by industry and lead to even higher quality new homes and better customer service.”
“Whilst challenging, the new arrangements will provide all parties, in particular our customers with even more confidence in buying a new build home. Allied to the thousands of pounds buyers save on their energy bills, the protection of the robust new consumer code and access to an independent ombudsman make buying new a really attractive option.”
