The new code will place significantly more responsibility on builders regarding their treatment of customers and how they deal with complaints. The New Homes Ombudsman, an independent body, will provide consumer redress if a dispute arises.
The New Homes Quality Board, a non-profit body, is overseeing the new Code "putting consumers at the heart of the new build process”. The Code covers every aspect of a new home purchase, from the initial sales office visit to the end of their two-year warranty. Under the Code, housebuilders must also have an effective after-care service to address any issues. The NHQB said this was one of the biggest gaps in current customer care arrangements.
They will be required to have in place a robust complaints process, responding to customers in a timely fashion and to their satisfaction.
The new code also:
- Protects customers, prohibits high-pressure selling and requires any deposits the customer pays to their builder to be protected,
- Requires developers to provide all relevant information about the home during the sales process – including its tenure and any future management or service charges – so consumers can 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 a large number of previous codes, “boosting consumer confidence”.
The NHQB said more than 100 developers were registered with the code and were working with it to follow the first housebuilders in going live with their registrations “at the earliest opportunity”. Those signed up to the scheme will display the NHQB and ombudsman branding.
The scheme initially applies to England, Wales and Scotland but will ultimately cover the whole of the UK.
Stewart Baseley, HBF’s executive chairman, 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.”
