In this article Katherine Whittle provides an overview of the New Homes Quality Code and the benefits for developers.
If you are a developer selling a new home, you may wish to consider registering with the New Homes Quality Board (“NHQB”) in relation to the New Homes Quality Code which contains ten fundamental principles for developers to follow in all their dealings with customers of new homes.
The New Homes Quality Code offers enhanced protections for buyers of new homes, and we anticipate it will make properties more marketable and attractive to prospective buyers, thus being something a developer may wish to adopt.
The Government announced a New Homes Ombudsman should be introduced in response to criticism of new build homes. The ultimate aim of the New Homes Quality Board is to achieve customer satisfaction and the New Homes Code was published in December 2021.
The New Homes Quality Board aims to build on the Consumer Code currently being operated and fill in the gaps in the current process. The New Homes Quality Board has been created to develop a framework in which the New Homes Ombudsman will sit. Whilst membership is currently voluntary, the intention is for it to be used on a UK wide basis. It will require participation for members on Help to Buy Schemes.
The New Homes Quality Code establishes mandatory requirements which must be adopted and complied with by developers and new homes builders who are registered with the New Homes Quality Board. In summary, the NHQB:
- Allows a 2-year builder’s liability for the customer from date of Legal Completion of the original sale by the developer.
- Prohibits selling incomplete homes, ensuring new homes built by registered developers meet building-safety and other regulations.
- Enables buyers of new homes to arrange a pre-completion inspection before the completion date and within five days after Notice to Complete has been served or earlier if the developer and the customer both agree to this.
- Requires the developer to provide full information to buyers on tenure, future management and service charges.
- Provides an effective after sales process.
If you have any questions regarding the New Homes Quality Code, please get in touch with a member of the Housing and Regeneration Team.
