More protection needed for new-build buyers - claim

Homeowners need greater protection from poor quality housing amid the Government’s plans for 1.5m new homes, an industry body claims.

That’s the warning from the New Homes Ombudsman Service, which is responsible for dealing with complaints about the quality of new housing by home buyers.

In its first annual report since being formed in October 2022, the New Homes Ombudsman reports that 90 of the largest developer groups in Great Britain have joined the service accounting for just over half (55%) of all new homes sold in England, Scotland and Wales. A further 91 are taking the steps needed to do so which would bring coverage to 65 – 70% of all homes sold. 

However, the Ombudsman is warning that most small and medium developers are not yet covered by its service.

In 2022 the Building Safety Act made provisions to establish a New Homes Ombudsman Service that all housing developers would be required to join.  

However, at present this has not been implemented, meaning the Ombudsman is currently a voluntary service, established by the New Homes Quality Board which has already produced a New Homes Quality Code setting standards for new home builders to meet, including access to the Ombudsman service.

As the Government kickstarts its plans to build 1.5m new homes over the course of the next five years, the Ombudsman is calling for ministers to use the powers they already have to make it a legal requirement for all new housing developers to join the scheme. Importantly, pricing structures should be set to prevent undue hardship for small and medium sized builders.

According to research, last year 32% of people described new build housing as ‘poor-quality’ whilst 55% said they felt older homes were a better quality than new-build properties. Just 21% said they felt new homes were better quality.

Jodi Berg, chair of the New Homes Ombudsman Service, said: "While we've made significant strides in our first year, it is crucial that all homeowners receive equal protection against poor-quality new housing.

“As the Government implements its ambitious house building plans, ensuring all developers join the Ombudsman service is essential. Without this, too many people will be left without the help they need."