Category Archives: New Homes

Latest new home news and views from the New Home Expert

Buyers from 60 different Persimmon developments contact BBC Watchdog, revealing poor quality and customer service issues are a nationwide problem.

Buyers beware!

Following Persimmon being featured on BBC Watchdog and in my view let off lightly, last month, the BBC Watchdog office has been contacted by hundreds of disgruntled Persimmon new home buyers from as many as sixty different developments across the country with their experiences of unfinished homes, defects and poor customer care. See the Persimmon BBC Watchdog clip here

Homes not finished

On couple featured on last nights programme were Charlotte and Ashley Read who bought a new home on Persimmon’s Waters Edge estate in Cheshire. When they were handed the keys to their brand new £190,000 new home they found:

“it looked like a half finished house. Everything was a mess there were things incomplete, no rainwater pipes” causing damp and mould inside our home. I couldn’t believe we paid money for this, it was disgusting”

It took Persimmon THREE MONTHS to finally “sort everything out”

Other new home buyers also found Persimmon’s contractors still working in their homes when they came to move in – “the house wasn’t finished but Persimmon had declared it to be ready and taken their money anyway.”

The CML final certification was brought in to prevent housebuilders handing over unfinished new homes. The Council for Mortgage Lenders initiative requires this completion certificate, along with confirmation that the new home warranty is in place, before they release the mortgage funds. So how and why can a new home be signed off by a supposedly independent Building Inspector, quite often the NHBC, when clearly it anything but complete?  How can the “inspectors,” the site manager and everyone else, miss something as obvious and quick and easy to fit as no rainwater downpipes?

The CML final inspection should to be made 14 days before the legal completion date. This is to give the solicitors and mortgage provider a minimum “14 days notice” to arrange for the funds and also would provide new home buyers with an opportunity to properly inspect their “finished home.”  How is this notice period being avoided by Persimmon (and other housebuilders) especially in the weeks and days before their financial year end cut-off date?

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Bovis fail to win a single NHBC Pride in the Job Quality Award.

Bovis homes’ website proudly (if somewhat unbelievably) claims:

“We build some of the best new homes in the UK.
We pride ourselves on being one of the country’s leading housebuilders and have established an enviable reputation for the quality of our build and design, high specification and excellent customer service.”

cropped-Bovis-Sales-Office.jpg
Well they would say that – but it can it be justified?
The truth was confirmed last Friday when the NHBC announced the 2015 winners of its Pride in the Job competition. “The NHBC Pride in the Job is the only UK-wide competition dedicated to recognising site managers who achieve the highest standards in house-building.”

Bovis site managers failed to win a single NHBC Quality Award!
For the first time in eight years, Bovis became the only large national plc housebuilder not employ a single site manager worthy of an NHBC Quality Award. Out of an average 97 “active sites” in 2014, not one of their site managers stood out above the crowd. NHBC PIJOBNot one was able to demonstrate he cared about the quality of the homes built on his site. Not one possessed the “wide range of site management skills from technical knowledge and consistency in the build process to leadership and organisational skills, and achieving the highest possible standards and best practice in house building” that the NHBC judges were looking for.

Bovis turf

No one cares at Bovis!  They cannot even be botherd to set up a sprinkler to water new turf!

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Three star Persimmon homes get off lightly on BBC Watchdog 21 May 2015

“Why choose Persimmon?”  it says their website. Why indeed.
It remains a complete mystery to me why anyone in his or her right mind would actually choose to buy a new home from Persimmon. Especially when they can choose to buy from any five-star rated housebuilder with a history of winning NHBC awards for quality. Or at least avoid the worst of the housebuilders – those featured on national television programmes and in newspaper columns for both the poor standard of the homes they build and the lack of any resemblance of customer care when homebuyers discover the inevitable snags and defects, missed by the so called professionals employed by housebuilders such as Persimmon.

I am amazed that year after year, naïve young homebuyers get taken in by Persimmon’s marketing spin, some ending up in tears on national television with their fully preventable tales of woe. Preventable, because their homes could have been built with greater care. Preventable, because they could be built more slowly and all stages thoroughly checked and inspected by Persimmon site management, the warranty provider and building control inspectors. Preventable, because the government could and should introduce new legislation to protect all new homebuyers and provide an independent means of dispute resolution in the form of an Ombudsman for New Homes, rather than rely on a Consumer Code for Home Builders, set up and managed by housebuilders and other interested parties.

Talk is cheap.

All housebuilders make exaggerated claims about the homes they build and the “service” they offer to customers. Only in housebuilding could 93% of buyers experience a problem. Only in housebuilding would 47% of buyers be expecting the number of defects and problems they get. Yet they still buy new homes, year after year. Maybe they get taken in and assured by statements like these:

“Persimmon Pledge:
From the moment our customers reserve one of our new homes, we pledge to make the experience enjoyable and informative each step of the way.

 

We aim to take care of our customers, not just when they are buying but also when they have moved into their new home. All of our staff are trained to provide a high level of customer service and to deliver our comprehensive pre-move and after sales pledge to our customers.” 

 

“Quality Assured
“On completion of your new home we will provide you with a quality assured certificate for you to keep within your Masterfile.”

Pity their homes are not 100% complete when some of their buyers are told they are! Persimmon also state on their website that:

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HBF National New Home Customer Satisfaction Survey 2015

The quality of UK new homes is getting worse

The Home Builders Federation (HBF) National new home customer satisfaction survey results and house builder star ratings for 2014 were released last month with a claim by the HBF that “Homeowner satisfaction with new homes remains high” Compared to what?

The HBF fail to highlight that, even by the methods used for the industry’s own in-house satisfaction survey, the latest results show even fewer new homebuyers would “recommend their builder to a friend” – down 4%. The number of buyers “satisfied” with the quality of their new home is also down 4%. The survey results indicate that the quality of UK new homes and the standard of service offered by housebuilders is getting even worse, not better. The number of new homebuyers who “experience problems” with their new homes is a staggering 93% – up 1% on last year. In other words, buy a new home and you are virtually certain to have problems with it

Defect barratt-lovely-edge-on-skirting-board

In the survey results for 2013, 46% of buyers found more problems with their new home than they had expected. The results for last year would appear to indicate that people buying a new home expected more problems – with 47% stating that the “number of problems were in line with their expectations.” – a 20% increase. The housebuilding industry has succeeded in managing customers expectations so well that the existence of defective workmanship, snags and faults, such as leaking pipes, creaking floors, garden flooding and more in their new homes has become normal, expected and is perceived by both industry and customer as unavoidable. Clearly this is as wrong as it is unacceptable.

As in previous years, the HBF try to promote the myth that levels of customer satisfaction have improved year on year and that UK new homes are better than ever.Taylor Wimpey 9 months small size

It would be better to inspect and prevent defects rather than carry out remedial works after buyers move in. The works above were finally being done by Taylor Wimpey – 9 months after the buyers first moved in!

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HBF Survey Housebuilder Star Rating 2015

Barratt HBF Star rating

Highest Quality Housebuilder? Not exactly!

Before 2011, the star rating of  housebuilder’s was also based on the question: “Taking everything into account, overall how satisfied or dissatisfied are you with the quality of your home?”  over the last three years the star rating awarded to housebuilders is derived from the responses to just one Yes or No survey question:“Would you recommend your builder to a friend?”

Of the bigger housebuilders only Barratt, Redrow, McCarthy and Stone and Miller maintained their 5 star rating from last year.  Taylor Wimpey, Bellway, Bloor, Crest, and Churchill Retirement Living, all lost their five star rating. Persimmon, Bovis and Avant also lost a star and are now the only housebuilders rated just 3 stars in the latest HBF National New Home Customer Satisfaction Survey.  Just how bad are their new homes?

So why are standards getting worse and who is to blame?
Guilty Housebuilder CEOsThese men are all guilty – guilty of building and handing over new homes late, not fully completed, with defects and failing to provide the required level of customer care to ensure that all their buyer’s problems are rectified quickly and effectively. Britain’s least wanted! – Lacking in star quality?  They may have stars in their eyes but now have fewer on their site flags!

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Help to Buy ISA for first-time buyers in 2015 Budget

Budget2015Designed as a cynical piece of electioneering, the Chancellor announces the Help to Buy ISA in his Budget speech. Like most knee-jerk policies, this was intended to attract the maximum amount of media coverage whilst the benefits to first-time buyers will be minimal. As Merryn Somerset-Webb sees it in MoneyWeek: “Handing over free money to compensate for rising house prices” in an “attempt to buy the votes of the young rather than actually help them”  – I could not have put it better.

The new Help to Buy ISA accounts (‘Bisa’) are expected to be available from Autumn 2015 until 2019, but once an account is opened there is no limit on how you long you can save for. Under the rules, buyers will be able to pay in an initial £1,000 and then save up to £200 per month. As with existing ISAs, any returns will be free of tax but in addition, for every £200 saved, taxpayers will contribute a further £50, up to a maximum bonus of £3,000 on £12,000 saved. The government 25% contribution bonus only becomes payable when the funds are used to buy a property.

help_to_buy_isa_-_full_size

The ‘Bisa’ accounts will be limited to one per person rather than one per home, meaning first-time buyers saving for a deposit for a home will both receive a bonus. So a couple saving towards a first home together could benefit from a potential bonus of up to £6,000 as both savers would be eligible for a £3,000 bonus. The bonus will apply to both the amount a person saves into their Help to Buy ISA and the interest that has built up during the period the account is open. The bonus will be limited to first-time buyers’ home purchases up to £450,000 in London and up to £250,000 outside London. Help to Buy ISAs will only be available to those aged 16 and over.

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New Homes To Have Home Quality Mark

HQMThe Building Research Establishment (BRE) is introducing a national quality mark for new housing that it claims should give home buyers and renters a clear indication of the quality and performance of a new home.

BRE logoThe BRE says it is a “world leading building science centre that generates new knowledge through research. This is used to create products, tools and standards that drive positive change across the built environment.” The BRE claim its ownership structure enables the BRE to be “held as a national asset on behalf of the construction industry and its clients, independent of specific commercial interests.” Allegedly protecting the “impartiality and objectivity of the BRE Group in providing research and guidance.” The BRE Trust is a registered company limited by guarantee and also registered as a charity in England.

A number of stakeholders are currently working with BRE on the development of their Home Quality Mark from its beta testing stage. Of the housebuilders, only Galliford – with its perennial ‘four-star’ HBF-rated Linden subsidiary, ‘minnow’ Cala, and Kier are currently involved at present.

CALA Homes, plan to trial the Mark. Cala Chief Executive Alan Brown said: “Independent benchmarking of new homes is hugely important. For CALA, it provides third party recognition of our commitment to consistently build high quality, sustainable homes. For homeowners, it offers a simple and reliable measure of the energy performance of the property they are buying. We look forward to working with BRE on the new Home Quality Mark.”

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The BRE say “the new national quality mark will transform the way consumers choose the homes they buy and rent and will provide house builders with a valuable independent quality mark they can use to highlight the innovative features of their homes and differentiate themselves in the marketplace at a time of rapid growth.”

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Number of new homes built in 2014 up just 8 per cent to 118,760

The latest figures released by the Department for Communities and Local Government report the 137,000 new homes were started in 2014 – a 10% increase on the previous 12 months. The total of just 118,760 new homes completed in the 12 months to 31 December 2014 was up by 8% on 2013.

House prices Table

If ever there was proof that house builders are hoarding land and restricting supply this is it. Nearly every major plc house builder now has around five or six years’ supply of building land. Despite this their lobbyists the Home Builders Federation (HBF) are still bleating on about the planning system.

Stewart Baseley, executive chairman at the Home Builders Federation claimed that more than 100,000 extra people were now employed in house-building, providing a boost to the economy. Yet the HBF is demanding further incentives to encourage more development.
He said, “We are still way short of building the number of new homes the country needs, and that despite the government’s Help to Buy scheme, it was still too difficult for developers to get planning permission.”

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How poor site managers win NHBC Quality Awards

Whilst it should always be preferable to buy a new home on a site when the site manager has won an NHBC Quality Award, many new homebuyers will be amazed to discover that actual quality of the new homes being built has very little to do with the actual winning of NHBC awards for quality!

The NHBC have said “The judging process does not guarantee that every home built on a site will be without issues and our 10 year Buildmark warranty and insurance cover is there to provide protection to the homeowner should problems arise following completion.”
Perhaps this is why NHBC Quality Award-winning site managers are not necessarily the best site managers

TWPITJ1

A quality award-winning site manager but his buyers didn’t get a quality new home!

By using the right “recipe”, even the most dim-witted site manager can (and does!) win an NHBC PITJ Quality Award by following the suggestions below!

Work for the right house builder
Every year, certain housebuilders have far more NHBC award-winning site managers than others. So by working for Barratt or Taylor Wimpey, a site manager is around 10 times more likely to win an award than he would be working for Persimmon/Charles Church for example. Differing cultures, priorities and enthusiasm for the awards may explain this.

OLYMPUS DIGITAL CAMERAGet support from managers
It is essential that the site manager receive positive backing from his contracts manager and regional construction director. Without their input and support, even the best site manager will have no chance, whatever the NHBC may say about PITJ on their website; “achieving the highest possible standards and best practice in house building”

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The top 20 mistakes made by UK new home buyers

Buying a brand new home built to exacting standards, the latest energy-efficient designs with a ten-year warranty, where could naive, trusting new homebuyers possible go wrong?  Read on to discover the twenty most common mistakes made by Britain’s new home buyers and make sure you don’t become yet another victim of the UK housebuilding industry.

cropped-Bovis-Sales-Office.jpg1) Buying a new home because they can not because they should Various government schemes such as Help to Buy schemes make it easier and often the only financially possible way to get on the housing ladder. Being able to buy is not alone a good enough reason to buy a new home.

2) Using the housebuilder’s recommended, suggested or nominated firm of solicitors
The number one mistake made by new homebuyers. Despite it being illegal for housebuilders to insist that buyers use a certain solicitor, it still occurs. One major plc housebuilder even pre-filled in reservation forms with their preferred solicitor! By using the housebuilder’s solicitor buyers are not only relinquishing control of the process to the housebuilder, they are actually putting themselves at a legal disadvantage by not having their interests represented. Issues include; buyers legally completing on unfinished houses, a buyer of a flat later discovered specifications had been changed and the length of lease reduced and being told that completion certificates and warranty documents had been received when they had not even been issued, due to unresolved compliance and warranty problems with the home.

3)  Not having their new home independently professionally snagged and inspected
Snagging inspectorThe second biggest mistake new homebuyers make is not having their new home professionally snagged and inspected before they legally complete. It is a sad fact that around 96% of all new homes buyers will have defects and problems with their new homes after they have moved in. Many, if not all of these could have been prevented if the property had been properly inspected at each construction stage by both the housebuilder’s site management and warranty provider. It is therefore essential that new homebuyers use an independent professional to thoroughly snag and inspect their new home before they legally complete. This not only ensures it is, at the very least, fully completed before they pay for it, it also highlights all visible defects, snags and breaches of regulations and warranty standards. Unfortunately both the housebuilders and warranty providers cannot be relied upon to properly carry out the inspections and oversee remedial works to correct defects.

4. Not doing any research regarding housebuilders or new homes before buying
Websites such as our sister site www.brand-newhomes.co.uk and various forums have a wealth of information available for the new homebuyer. This enables them to make a fully informed choice, aware of what can and does go wrong and what steps they can take to reduce disappointment and feelings of regret and resentment after moving in.

5. Paying too much – not getting a discount
All house builders have a price list but only a fool actually pays the full price. Site sales staff nearly always have “negotiables” they can offer buyers with discounts amounting to 5-10% off the full advertised price on certain plots at certain times of the year. In addition, many new homebuyers buy at or near the top of the market paying too much only to later watch as the resale value of their home plummets just as interest rates rise and the housing market crashes.

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