In a decisive move to address the housing crisis and stimulate economic growth, the new Chancellor of the Exchequer, Rachel Reeves, has unveiled the Government’s strategy to “get Britain building again.” An ambitious policy designed to ensure the construction of 1.5 million new homes within the next parliamentary term.

However, this raises the question: who regulates the quality of these new homes?

The construction quality of new-build properties in the UK has been a growing concern for several years, with numerous reports highlighting the adverse effects of poor construction on homeowners.

The issues range from minor cosmetic defects to significant structural failures that pose safety risks. For purchasers, the dream of owning a new home can quickly turn into a nightmare of endless repairs, financial strain, and emotional distress. While building more homes is undoubtedly important, ensuring those homes are defect-free and suitable for habitation is vital, and developers must be held accountable if they are not.

In January 2021, the “New Homes Quality Board” (“NHQB”) was launched to help regulate the industry. They established the New Homes Quality Code, providing guidelines and a regulatory framework to ensure the quality, safety, and ethical construction of new homes in the UK. All developers are expected to register, but only those developers who do actually register with the NHQB are seemingly bound by these regulated standards.

The apparent rise in substandard construction practices undermines the value of the property and leads to additional costs of fixing defects. Homeowners often find themselves in a lengthy and frustrating battle with developers and warranty providers to get repairs completed. The psychological impact is profound, with the associated stress and uncertainty affecting the well-being of individuals and families.

 

Tips for buyers to protect their purchase

It is clear that there is more to be done to regulate the build quality of new homes. In the meantime, there are steps purchasers can take to place them in the best position:

 

1. Investigate:

A purchaser, when buying a new build property, should research the developer, by checking reviews on sites like Google Reviews and Trustpilot and ensuring the developer is registered with NHQB or follows the Consumer Code for Home Builders, and has accreditation from NHBC or other warranty providers. This information is usually available on the developer’s website.

 

2. Inspect the Property – Pre-completion

If a developer is registered with the NHQB and/or follows the Consumer Code for Home Builders (5th edition) the purchaser can and should conduct a Pre-completion snagging inspection, which should not be refused by the builder/developer. These inspections help buyers identify visible defects before finalising their purchase. The inspection follows a specific checklist but does not include detailed evaluations.

 

3. Snagging report – Post Completion

After the property is handed over to the buyers, a standard snagging inspection should be conducted. These inspections examine the details of a new build’s condition, identifying cosmetic flaws and underlying issues. They can reveal hidden problems like insulation voids, moisture issues, and defects. Snagging inspections also encourage discussions between buyers and developers about necessary repairs, protecting the purchaser’s investment. A purchaser should provide a copy of the snagging report to the builder/developer and ask for the defects recorded in the report to be rectified.

 

4. The Consumer Code

When buying a new home, there are two consumer code schemes to be aware of: the Consumer Code for Home Builders and the New Homes Quality Code. Both aim to ensure builders treat buyers fairly during the sales process and for two years after completion. These codes help maintain high standards in construction, sales, and aftercare.

 

5. Two-year Builders warranty

Builders/developers are responsible for fixing any defects in a property for two years after purchase. This period allows buyers to identify any issues that weren’t initially obvious. During this time, builders/developers must promptly address these problems to meet agreed standards and maintain their reputation. A purchaser should report any faults as soon as they find them, relying on the builders to fix these issues as part of their contractual obligation.

 

6. Ten Year warranty

Purchasing a newly built home comes with the reassurance of a 10-year structural warranty. This includes deposit protection against builder insolvency, a two-year defects insurance period for craftsmanship or material faults, and a decade-long structural insurance from the property’s completion date. Leading warranty providers are the National Housebuilding Council (NHBC), Local Authority Building Control Warranty (LABC), and Premier Guarantee.

A purchaser should ensure that they know which provider covers their property.

 

7. Complain

Within the initial two years of homeownership, purchasers must communicate any issues regarding the property directly to the builder/developer for rectification. It is always advisable to maintain a thorough record of all correspondence, including letters, emails, and notes from phone conversations, as these documents may prove essential should the need for further action arise.

On completion, a purchaser will be provided with information on how to raise a formal complaint with the builder/developer, and this process should be followed in the first instance. The builder/developer is obligated to provide a conclusive written statement detailing their stance and any proposed measures. If the builder’s/developer’s final communication indicates a refusal to act on the complaint, the matter can then usually be escalated to the relevant Consumer Code scheme or to the warranty provider.

 

8. Litigate

If a purchaser cannot resolve a complaint with the builder/developer or through escalation, the final option is to start formal proceedings, either in court or through arbitration. Most sales contracts for newly built homes include a dispute resolution clause, which outlines the required steps for resolving disputes. These clauses can make the process complex and costly, often leading purchasers to abandon their complaints or pay for repairs themselves because it is cheaper than continuing with the litigation.

Purchasers should seek independent legal advice to maximise their position and explore all options before proceeding with formal legal action.

 

Zac Clough
zac.clough@h-f.co.uk