The publication of the New Homes Quality Code comes after years of work to agree a single code and a full public consultation on its initial draft in early summer.

The new code aims to fill the gaps in current protections and ensure that every aspect of a new home purchase — from when a customer walks into a sales office through to two years after the purchase of the home — is covered.  

It protects vulnerable customers and prohibits high-pressure selling, and requires that any deposits paid by the customer to their builder must be protected.

It also sets out requirements for a fair reservation agreement — including a ‘cooling off’ period — and sales contracts.

In addition, it allows customers to have a professional carry out a pre-completion inspection of their home on their behalf, and prevents paying client from moving into an incomplete new home early. 

Under the new code, developers must provide all relevant information about the home during the sales process – including its tenure and any future management or service charges – to allow customers to make an informed decision about their purchase.

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It also requires builders to have:

• an effective aftercare service in place to deal with any issues or ‘snagging’ problems customers have with their new home
• a robust complaints process that responds to customers concerns in a timely manner and to their satisfaction, keeping them informed throughout. 

If a customer is not satisfied with how any complaint they have made has been dealt with, they can refer their complaint to the independent New Homes Ombudsman service.

The NHQB will continue to review the code as the new arrangements are implemented and Ombudsman adjudications are made, as well as do further work on the viability of other proposals made in the consultation that it currently couldn’t include without significant delay to implementation, and so to consumer protections.   

In addition to the New Homes Quality Code, the NHQB has published a Developer Guidance document; a glossary and a report setting out how the final version of the code was agreed following the consultation.

Natalie Elphicke, chairman of the NHQB said: “This powerful new code is a central plank in our work to drive up the quality of new build homes and strengthen redress for consumers.

“It fills the gaps in existing protections and puts considerably more requirements on builders in terms of how they deal with their customers and any issues that they have with their new home. 

“Together with the access to the independent New Homes Ombudsman Service that we will put in place, it will deliver a step change in protections for new build buyers.    

“Over the coming months, we will work closely with industry to support and help them make the transition to the new arrangements.

“I firmly believe that, while challenging to implement, the new regime will deliver a step change that the industry will ultimately recognise brings huge benefits for both their customers and them.”

The NHQB is also currently working on a portal that will allow developers to start to register from January. 

Once registered, developers will be provided with support and training to enable them to make the transition to the new arrangements. 

Once both parties are satisfied that they are ready, builders will then ‘activate’ — thus, all customer reservations of a new home taken from that point will have to meet the requirements of the new code and come under the remit of the Ombudsman.