Ombudsman calls for new build homes to be included in consumer redress

The Property Ombudsman has urged the government to bring the new homes build sector under consumer redress.

New builds are not currently covered by an ombudsman and Katrine Sporle says disgruntled consumers therefore have 'nowhere to seek redress'.

Following Ombudsman Services: Property's withdrawal from the sector in August and a previous commitment to reviewing the property redress sector in the form of a consultation, Sporle urges the government to include new homes in any future framework 'to provide a better housing market for all'.

The ombudsman's call follows NAEA Propertymark's leasehold report, released on Friday. The findings of which Sporle describes as 'stark'.

A survey of leasehold property owners found that 94% regretted buying a new build home on leasehold. The report found that over 60% believe they were mis-sold their property by a developer.

It also revealed freeholders charging leaseholders rip-off fees for making cosmetic alterations. 

The ombudsman says it's a 'scandal that needs to be sorted'.

The Ministry of Housing, Communities and Local Government launched an eight-week consultation on the future of redress in the housing sector in February. 

One of its key aims was to determine whether it would be suitable to introduce a single ombudsman to oversee the entire housing sector.

Another proposal covered by the consultation was whether it should be a requirement for builders to join an ombudsman scheme.

Despite the consultation closing almost five months ago, the MHCLG says it is still 'analysing feedback' from respondents.