The Consumer Code for Home Builders came into effect in April 2010 and established mandatory customer service requirements that home builders must deliver or offer to the purchaser. These include but are not limited to the following:
- Clear and honest advertising.
- Home warranty and contract information including termination rights.
- Pre-purchase information to allow for informed decisions to be made about the purchase.
- Information as to the timing of contraction, completion, and handover.
The New Homes Quality Code is a replacement of the Consumer Code for Home Builders and was published back in December 2021 by the New Homes Quality Board. The New Homes Quality Code is applicable throughout the UK and aims to increase the quality of new build homes, improve the protection available to buyers, put right any issues which have been discovered in the previous protection and ensure that all aspects of the purchase are covered for a period of two years after completion.
The New Homes Quality Code implements additional new requirements to those already laid out by the Consumer Code for Home Builders. The new Code gives the purchaser the right to inspect their new build home prior to completion, either carrying out the inspection themselves or using a professional. These changes have been implemented to balance the previous influential relationship.
The fundamental principles under the Code aim to ensure sufficient training of agent. This change will put pressure on the developers to make sure their sales agents are fully trained.
There is also requirement for developers to provide all information which is relevant to the purchase for example the tenure, any management charges and estate charges that may apply. Details of the new home should also be provided under the Code such as the size, layout and plot position of the property. As many clients will be purchasing off plan plots this information is essential at the outset of the transaction. Purchasers can now make an informed decision prior to reserving a plot. Purchasers also have a 14-day cooling off period where they can cancel the reservation for any reason and in return receive a full refund of any fees.
One of the main changes to the industry is that Developers under the Code are not allowed to influence the purchaser to use a certain solicitor. This is a welcome change to the industry as it enables purchasers to choose their own independent solicitors who can work in their best interests.
Developers must ensure that any defects in the property, of which they are made aware of, are dealt with within 30 calendar days. This means purchasers are not left with defects for months and months. This change will however, put pressure on the developer to have the availability of staff to deal with such works.
'I have purchased a new build home and wish to make a complaint about a breach of the New Homes Quality Code. How can I do this and what is the process?'
If the developer of your new home is on the register of developers and they were registered before you reserved your home, then you will be covered by the New Homes Quality Code and the New Homes Ombudsman could investigate your complaint. To make a complaint you will need to contact the Ombudsman and provide details of the breach along with any supporting evidence. If the Ombudsman feels you have a valid complaint, they will speak with the developer to obtain their version of the events. Both parties to the complaint will have the opportunity to review the information and documentation that has been reported. The Ombudsman will then publish a draft decision as to whether they feel there has been a breach of the code. The parties will have 10 days to provide additional information after which a final decision will be made by the Ombudsman.
