Housing secretary Robert Jenrick announced that the ombudsman — which all developers will be required to belong to by law — will aim to protect homebuyers from rogue developers.
It will have statutory powers to award compensation, ban rogue developers from building and order developers to fix poor building work.
The ombudsman will act to resolve any issues involving homebuyers and developers.
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“From calling out building owners who have yet to remove unsafe cladding to creating a new ombudsman to tackle poor quality housebuilding, the government has taken important steps into championing consumers’ rights in housing,” said Mary-Anne Bowring, group managing director at property services company Ringley.
“Previously, homebuyers had no choice but to go through expensive court cases using decades-old legislation to fight their case and so the new ombudsman should save all parties time and money while helping to raise standards.
"These steps should be part of a wider package of reforms by the new housing minister that see leaseholders protected from the fall out of new fire safety regulations, as well as encouraging the creation of a professionalised rental market by welcoming institutional investment and promoting technology to improve transparency and service.”