During the coming months the board, chaired by Natalie Elphicke MP OBE, will oversee the introduction of a new industry code of practice, the consultation on which it will also involve itself. It will also manage the appointment of a New Homes Ombudsman Service (NHOS) which will provide support to buyers should disputes occur.
The board explained that the new code of practice – the New Homes Code – was key to the new quality arrangements which would fill gaps in existing consumer protections. Under the Code, housebuilders will be expected to do much more to ensure quality and satisfaction, “from the sales process through to two years from when buyers move into their new home”.
They will be required to have an effective complaints procedure in place, specifying timelines within which they will address any issues to the customer’s satisfaction or potentially face a referral to the NHOS. A consultation on the Code is currently underway.
The NHOS will be free for consumers. The industry will cover the costs, most likely through an annual registration fee and a levy based on housebuilder volumes.
The NHQB said it was “working closely” with the Ombudsman Association, the independent body validating ombudsman schemes, on the route to appointing an NHOS. In the autumn, the board submitted an application detailing its ombudsman proposal to the Ombudsman Association’s Validation Committee. It is now developing a tender and appointment process.
It is hoped the Code will be finalised and an NHOS appointed “in the coming months”, with the new arrangements in place later this year. There will follow a transition period in which housebuilders will be required to join the NHOS and abide by the New Homes Code. Leading up to this, the board will continue to work with the UK government and devolved administrations.
The launch of the NHQB is the culmination of more than four years’ work - led initially by the Home Builders Federation – following the publication of 2016’s More Homes, Fewer Complaints by the All-Party Parliamentary Group for Excellence in the Built Environment. The APPGEBE stated, as its number one recommendation in the report, that a new homes ombudsman should be established.
In summer 2019, Natalie Elphicke picked up HBF’s work after being appointed “new homes quality champion”. An interim board was established last May.
Stewart Baseley, HBF’s executive chairman, said: “The industry is absolutely committed to putting measures in place to help deliver consistently high-quality new homes and effective redress for buyers. Recent years have seen significant improvements made in build quality and customer service and we are determined to go further.
“Today’s announcement is the next step in a process HBF started some years ago involving a broad range of stakeholders. The proposed arrangements will present the industry with some challenges but will, I believe, ultimately prove of considerable benefit to builders and customers alike.”
