Tag Archives: APPG Inquiry Into Quality of New Homes

Government Consultation – Apathy, Ignorance and Lack of Publicity

Government Consultation: New homebuyers – why you should be bothered!

So after four years of campaigning for the government to set up an independent New Homes Ombudsman, new homebuyers finally have a golden opportunity to tell government to set one up. Given the 100,000 or more that buy a defective new-build home each year, (98% reported issues to their housebuilder within a few weeks of moving in, 41% reporting 11 or more “problems”) you would think new homebuyers would be ‘chomping at the bit’ to complete the government consultation!

Government consultationBut here’s the rub; the government are not publicising this consultation  at all. National newspapers have given it scant coverage of the consultation since the 18th February 2018 press release. Last Sunday, The Observer provided the only coverage of this important government consultation in a national newspaper since the press release. Even so, it only briefly touched on it saying “The government is consulting on proposals that include a single housing ombudsman to handle complaints” but didn’t say the views of new homebuyers are being asked for.  On 10 March, I contacted 35 journalists from national newspapers, just four replied! One had already written the story above, another has plans to cover the topic, PA to the Editor of the Mail on Sunday said she would “forward it to the news desk” and another forwarded my email to her editor as she will be abroad until April.

The Consultation “Strengthening consumer redress in the housing market” was “announced” on a Sunday, 18 February 2018, in a ‘blaze’ of publicity that was little more than a regurgitation of the MHLG press release which soon fizzled out faster than a budget supermarket firework on a wet night. Has lazy journalism replaced investigative journalism? Has anyone actually read the Consultation documentation?

But even if this government consultation was well publicised and made clear that the public should take part, it looks to me that the vast majority of new homebuyers wouldn’t be prepared to spend a few minutes to complete it. There are times, when I feel I am the only person trying to do something about defective new homes and errant housebuilders. Those that buy new homes, apart from a very few, in the main seem happy to do nothing themselves apart from seek help and moan about their new homes on social media. Ignorance and apathy? I don’t know and I don’t care!

I emailed around 400 new homebuyers (those that had previously contacted me for help and advice) asking them to complete this consultation, one replied saying: “Why would I help you out? I’m sorted now.”  Point to note you are not “helping me out” you are helping yourself and all future new homebuyers! On a personal level, I will never have a need to use a New Homes Ombudsman, as I would never buy a new home!

Posts on housebuilder Facebook “new homebuyer action” groups usually start:

“has anyone…”    “Can anyone….”    “Does anyone….”    “Question about….”
“I was wondering if anyone could help me…..”
   But very rarely: “This might be useful/help others”  Ask not what other new homebuyers can do for you, but what you can do for other new homebuyers!  But how many members of these various Groups will actually complete this consultation? I would be astounded if it was even as high as 1 in 20!

The previous government consultation “tackling unfair practices in the leasehold market”  stated: “The response to those plans, published here  was overwhelming. We received a staggering response with 6,075 replies” [5,336 private individuals of these 4,489 being leaseholders], demonstrating the strength of interest in this issue.”  This due to a large degree by very active Facebook Campaign Group with over 10,000 members and the support and backing of a registered charity with full-time employees, The Leasehold Knowledge Partnership vigorously promoting that Consultation in the press.

So government considers a response of a little over 6,000 is “overwhelming”. Imagine what the response would be if 15,000 (around just 10% of those that buy a new-build home every year) completed the current government consultation and demanded an independent, stand-alone, new homes ombudsman be set up by government.

Just when I think it couldn’t get any worse – two ‘copy cat’ consultations are been launched:

The Chartered Institute of Building (CIOB) consultation is asking members and other industry professionals for views on some of the exact same questions of current government consultation on strengthening consumer redress in the housing market. A spokesman from the CIOB told me:

“we are in support of a New Homes Ombudsman as we highlighted in our response to the APPG for Excellence in the Built Environment Inquiry. What we are trying to do by asking members a select number of questions in the survey is to get some data together to put forward in our response. We are not duplicating the work just that in our experience, members maybe too busy to respond or simply not know the process. Therefore, many CIOB members often share their views with us so we can formulate a response. Of course, what our members say isn’t gospel and we act entirely in the public interest.”

Hot on the CIOB heals comes yet another Consultation, this from Ombudsman Services that only last month declared said it would no longer offer “a broken solution to a broken market“.  But it would seem is now touting to be the single “Housing Ombudsman” that is Sajid Javid’s preferred option. Ombudsman Services new survey, “Building Balance”, has been launched, asking for views on a topics such as whether there should be a single ombudsman, and whether the current system is muddling for users. Well the number of simultaneous consultations certainly is!

These are in addition to another  consultation on commonhold – a result of the consultation on leasehold reform  last year, which is also ends on 16th April 2018.

The RIBA has a “Building on Quality” consultation. Point to note: to build on something it has to exist in the first place!

At least this one from What Mortgage comes with a chance to win £500 (now there’s an idea Mr Javid!)  but this looks to me to be little more than an exercise to harvest consumer data that can be passed to housebuilders!

In all likelihood,  the housebuilding lobby will get what they want, an ineffective ombudsman, which the industry has control over, that consumers don’t know about (just like their ineffective Consumer Code for Home Builders) and it could well be buried within a wider “Housing Ombudsman” which government would prefer. Great job Jibber Jabber!

If new homebuyers don’t know about this consultation, or worse can’t be bothered to complete it, nothing will change.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Strengthening consumer redress in the housing market – A Consultation.

An 8-week consultation is launched with the potential to give new homebuyers a route to an independent new homes ombudsman

Sajid JavidThis 8-week consultation, hot on the heels of the ‘behind closed doors’ sessions of the APPG EBE Inquiry to look into the potential and detail for a New Homes Ombudsman”,  announced by Sajid Javid on 29 November 2017, was finally launched on 18 February 2018 and is indeed taking place “in the New Year” It is titled “Strengthening consumer redress in the housing market” but is it what it seems?

Is Javid fully committed to giving beleaguered new homebuyers a statutory New Homes Ombudsman? This being paid for by a levy on housebuilders as recommended in the APPG EBE strangely titled Inquiry report “More Homes – Fewer Complaints” published as long ago as 13 July 2016!

Since this Inquiry report, we have had three housing ministers, yet none of them has seen fit to implement any of the APPG Inquiry report recommendations. We have reviews, considerations, discussions with stakeholders and all manner of excuses and delays. In the meantime, I have encouraged new homebuyers to write to their MPs and demand a new homes ombudsman be set up. So now 20 months later, we have yet another ongoing APPG EBE Inquiry (with any report due August at the earliest with October more realistic) and Javid’s 8-week Consultation ending on 16th April 2018.

The last housing 8-week consultation regarding unfair leasehold practices was from 25 July to 19 September 2017. The government response, dated 21 December 2017, (91 days after that consultation ended) indicted that just 5,336 private individuals took part. The Facebook National Leasehold Campaign Group has 10,000 members! It is to be hoped that at over 15,000 new home buyers will take part in the current consultation and leave the government in no doubt that a stand-alone new homes ombudsman is badly needed. Given previous experience, the government response can be expected around 16 July 2018.

So let’s go through the nitty-gritty, of the Consultation notes, page by page:

So first point to note on page 4 is “Any policy changes brought forward as a result of the consultation would be subject to appropriate assessment”
A ‘Get out of Jail Free’ card for housebuilders?

It is clear from Javid’s Foreword that he personally favours a single housing ombudsman. But a Housing Ombudsman already exists, so is Javid saying it isn’t working effectively? Is he using the furore surrounding defective new homes as a way to force through root and branch changes to the existing Housing Ombudsman? It would appear that the current proposal he favours is to combine the various existing ombudsman dealing with housing issues into one and add a function within that for new home buyers to seek redress against their failing housebuilders. Page 25 states that “primary legislation would ultimately be required to create an entirely new organisation to combine most of the existing housing redress functions and potentially also new functions” (a new homes ombudsman?)

On page 6 we find another ‘Get Out of Jail Free Card’ this time for the warranty providers as consumer redress would still remain with the Financial Ombudsman Service. Issues with new homes can be both technical and complicated and not suitable for an assessor at the FOS to rule on even though a new home warranty is in essence, an insurance product.NHBC New Home Warranty not within scope of the consultationA great deal of this consultation scope relates to tenants, social housing, estate agents, park homes and finally, buyers of new build homes (page 9) where it states that if the housebuilder fails to resolve issues and “the buyer disagrees with the warranty provider’s decision, or no action is taken the consumer can find they have no route to redress.” 

Apparently The Consumer Protection from Unfair Trading Regulations 2008 are enforced by Local Trading standards Services” (page 10). So can we expect a prosecuting for this blatant and proven breach?  

Finally, on page 19 we have three paragraphs under the heading “Buyers of new build homes”  there is an acknowledgement that “there are gaps in protection and there needs to be more robust protection for homebuyers in the first two years after purchase.” It also states that “We [the government] are working with the Home Builders Federation and warranty providers to address these issues and we want them to continue to drive improvement.”  The clear reality is there has been deterioration in the last 20 years. The HBF will always seek to protect the interests of their member plc housebuilders and warranty providers will protect their own interests, both ahead of those of consumers. 

Guidance for new homebuyers completing the consultation survey:

Question 2 answer “A person who has recently bought a new home” This is important as it will show the number of new home owners that took part in the consultation and demonstrate the need for a specific new homes ombudsman.

Questions 6 and 7. If you tick “The Consumer Code (IDRS)” please also give your opinion of how satisfied you are. Around 61% of new homebuyer’s cases with the CCHB adjudication scheme succeeded since it started but awards averaged just £1,498 – just 18% of the amount claimed! The government may try to claim the CCHB IDRS is effective even though the previous APPG Inquiry found it “limited in scope” and “does not appear to us objectively to offer consumers a wholly satisfactory form of redress”

Question 8 answer “there are gaps in redress”
That is, there is no independent, government-appointed new homes ombudsman!

Question 9 has no option for a New Homes Ombudsman. Those completing are advised to select “Other” and write “new homes ombudsman” in the box

Question 10 answer “Yes” and add “an independent statutory new homes ombudsman” in the box.

It is vital that the new home disputes are regarded as a separate issues from the existing housing ombudsman that deals with tenant disputes etc so,
Question 11 should be answered “NO – different sectors require different practices.”

Question 13 should be answered “Yes”
All ombudsmen should publish decisions as it is in the public interest to do so.

Question 14 “Time to deal with a complaint” is more difficult, so answer -“it depends on the complexity of each case” as specialist testing and reports may be required for new home issues.

On page 16 we learn that the Housing Ombudsman awarded compensation in a third of cases ranging from a ‘massive’ £20 to £8,195 – hardly suitable for new homebuyers! Most common awards across the three existing property schemes were stated as a paltry £50 to £500. Clearly miserly awards like these are not going to force housebuilders to improve what they do and don’t do!

Question 16 “Sanctions” Answer – “Financial award greater than £25,000” as justifiable, meaningful compensation must be available for the new homes ombudsman to award. Be wary of “Do you want to continue with the survey?” Click “YES – continue to section 5 addressing the gaps” otherwise you will miss the crucial questions for new home buyers!  Was this a cynical attempt by government to avoid responses from new homebuyers?
Consultation trick to miss new home questions?Question 17 Answer “Yes” adding in the box that “the CCHB does not cover disputes regarding snagging, quality and defects in new homes or any warranty issues or disputes with warranty providers.”

Questions 18, 19, 20 and 21 are crucial for all new homebuyers and need your responses as shown below:
Consulation New Home Buyer questionsQuestion 30 is perhaps the most significant question as it is the only opportunity for a response to ensure that a new home ombudsman is separate from a general ‘one-size-fits-all’ “housing ombudsman” that Sajid Javid appears to prefer.A separate New Homes OmbudsmanIt is imperative that the link to this consultation is shared via social media with all those that have bought a new build home. It needs a high response from new homebuyers to force government to sit up and take note and set up an independent new homes ombudsman as soon as possible.
https://www.surveymonkey.co.uk/r/Housingredress

If such a new homes ombudsman existed, all new homebuyers would be able to claim justifiable compensation, not just get their defective new homes rectified eventually! This is in everyone’s interests, those that have bought a new home and those that will in the many years to come! It is just too important to ignore.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

New Homes Ombudsman – APPG Inquiry 2018

The government has finally recognised the need for an independent New Homes Ombudsman and an APPG Inquiry is currently calling for evidence on how it would operate.

It is not impossible to build a defect-free new home. All that is required is the will to do so – building with care and with a thorough inspection regime that requires all sub-standard work to be taken down and re done. Yet 98% of new homebuyers report defects to their housebuilder within a few weeks.

Defects in UK new homes are injuring children!

For far too long the industry has used the “built in the open in all weathers” excuse and lowered buyers’ expectations. Bricklayers do not and cannot work in the rain! Render is not applied in the rain, yet there are many defects associated with both. Superstructure accounted for 38% of all NHBC warranty claims in the year to 31 March 2017, costing £35million (41% of total claims) to rectify. Adverse weather does not contribute to walls being built out of plumb, render cracking or missing insulation! All other trades (apart from groundworkers) work inside, often in the same conditions found in most factories.

I suggested the need for an independent, government-appointed New Homes Ombudsman when I attended the second session of the APPG EBE Inquiry ‘Into the Quality of New Homes in England’ on 23rd November 2015.

The APPG Inquiry Report, published on 13th July 2016, concluded: 

  • “Housebuilder’s own quality control systems are not fit for purpose”
  • “there needs to be an industry aspiration to achieve a zero-defects culture”
  • “good practice should be seen as building a new home that is defect-free” 

It clearly stated the number 1 “key recommendation” – the Department for Communities and Local Government (DCLG) setting up a New Homes Ombudsman: 

“The role would include mediating disputes between consumers and their builders or warranty providers to offer a quick resolution procedure paid for by a housebuilders’ levy.

We see this is as the key recommendation to provide more effective consumer redress, if things go wrong, and a good way of applying pressure on housebuilders and warranty providers to deliver a better quality service.

Our view is that the new service should be funded by a levy on the sector, but it would need to be completely independent and replace the dispute resolution service offered as part of the Consumer Code for Home Builders. Our recommendation picks up on one made by the Office of Fair Trading, in its 2008 market study into the house building industry, which suggested that, if the industry failed to make satisfactory progress, it would recommend further intervention in the form of a statutory redress mechanism for new homebuyers funded by a levy on the industry.” 

So it is somewhat disappointing that, 18 months after the report was making the recommendation that an independent, government-appointed New Homes Ombudsman be set up to give buyers an independent form of redress, there has been so little progress. It is to be hoped that following this latest Inquiry, an independent New Homes Ombudsman will be set up by government without recourse to further delay, consultation, consideration, or review.

“Too many new homebuyers are suffering, many are physically drained as a result of engagement with errant housebuilders when trying to get their new homes brought up to warranty standards and statutory regulations. For some buyers the mental anguish has become almost unbearable.”  – Rob Wilson ex MP Reading East

The housebuilders’ lobby group the Home Builders Federation (HBF), will no doubt tell this Inquiry that (according to the industry’s own customer satisfaction survey) “84% of new homebuyers are satisfied with their new home.”  But as Communities Secretary, Rt Hon Sajid Javid alluded to in his speech at the NHBC on 29 November 2017:

too many new-build homes are simply not good enough.” You [HBF] can point to customer satisfaction levels of between 80 and 90%, something I’m often told about but [of new homebuyers] finding faults that take months and sometimes even years to remedy. It’s not just disappointing – it’s devastating. But just think about those 217,000 new homes built last year. Even if 80% of them have no issues, that still leaves well over 40,000 families living in accommodation that they don’t think is good enough.” 

Indeed they do. The HBF frequently use the 84% “satisfaction” statistic. It is a fact that the HBF use their 8-week Customer Satisfaction Survey primarily to provide data to rebut negative claims on build quality.” HBF Chair Stewart Baseley who says he is a great believer in transparency and a great believer in people having access to services that are cheap for them to use to get qucik remedies to their problems”  Nevertheless this survey is all we have at the moment. Far from “if 80% have no issues” as Javid assumes, the HBF survey actually demonstrates that 98% of new homebuyers report “problems” (in other words defects), to their housebuilder within a few weeks of moving in. Indeed 41% report more than 10 defects. The quality of new homes has further deteriorated. This is an undisputable fact, now even demonstrated by the industry’s  dubious own customer satisfaction survey results 2017.

An ever growing number of new homebuyers have to move out of their new homes, often for several months, whilst their house is taken apart to rectify serious, often structural defects. More recently, there is a growing incidence of weak-mix mortar.

It is to be noted that the APPG Inquiry deadline for written submissions has recently been extended – the day after the BBC reported on the dire quality and defective new homes – from 22 December 2017 to 12 January 2018. It is hoped this is not to give the industry extra time to get its “ducks in a row.”

The current “procedures” limited as they are, serve to protect housebuilders and the warranty providers rather than help consumers. The only “alternative”, as has been written in many letters from various housing ministers and staff at the DCLG over the years, is for buyers to take action through the courts for monetary compensation.

As most buyers realise, even those with legal expenses insurance, this is a lengthy and costly process with no guarantee of a successful and fair outcome. Indeed, housebuilders have deep pockets and vigorously defend every attempt by the very few new homebuyers who courageously take this course of action. Housebuilders do this in the certain knowledge that it will cost them far less to defend the small number of claims that could potentially end up in court, than routinely pay justifiable compensation to homebuyers. Even if an agreement is reached ahead of a court hearing, this is normally subject to a non-disclosure agreement clause, (“gagging order”) to avoid any precedent being established and to reduce likelihood of action being taken by others, often with identical issues.

It is no longer a case of getting (all be it eventually) a few minor defects and snags rectified by the housebuilder being a satisfactory outcome. Now there is a clear case for justifiable compensation paid by housebuilders and/or warranty providers, to all buyers of sub-standard defect-ridden new homes.

A recent announcement by Communities Secretary Sajid Javid on 29 November 2017, mentioned “bold options” that the Government “will look at to improve consumer redress across the housing sector” – Setting up an independent New Homes Ombudsman should be its priority. 

Worryingly, it would appear that it is the Government’s intention of rolling all existing ombudsman (Housing Ombudsman, the Property Ombudsman and Ombudsman Services’ Property, and the Property Redress scheme) into one, all-encompassing, ‘one-size-fits-all’ “Housing Ombudsman” rather than a simplified New Homes Ombudsman, purely for consumers that buy new homes. I firmly believe a separate, stand-alone, fit-for-purpose, independent New Homes Ombudsman is the only way that this industry will be forced to look inwards at what it does and make both the quality of new homes and customers, their number one priority.

As it stands, housebuilders are showing no intention of taking proactive measures to improve the quality of the new homes they build. Consumers need a fully independent means of redress. It is now essential to appoint a New Homes Ombudsman for the house building industry. All existing legislation to protect consumers, including The Consumer Rights Act 2015, does not apply to property.

During a debate in the House of Commons APPG EBE chair Jo Churchill said:

“I applaud the Department for Communities and Local Government for getting the Home Builders Federation to look into the voluntary ombudsman scheme, but perhaps the time for any such voluntary scheme has passed.”   Perhaps? 

“…the repointing of joints on walls where purposeful demolition and reconstruction should have happened” – No doubt in response to the growing incidence of weak-mix mortar.

We must have not a nice, cosy, industry-led ombudsman, but an ombudsman process that has real teeth and the capacity to make a material difference” said Tony Lloyd MP for Rochdale

A New Homes Ombudsman, by its very existence would force housebuilders to look at what they do (and don’t do) forcing them to strive to do better, in the certain knowledge that a buyer can complain to an independent ombudsman who would potentially, be able to award unlimited, justifiable compensation. Such awards would become a matter of public record. No longer would housebuilders be able to delay and defeat buyers’ repeated attempts to have their defective new homes fixed.

New Homes Ombudsman:         FREE – FAIR – FOR EVERYTHING

Free – At no cost to new homebuyers making a complaint following the housebuilder or warranty provider issuing a final deadlock letter.

Fair – A New Homes Ombudsman would (and must) be entirely independent of the housebuilding industry – something that clearly the warranty providers and the Consumer Code for Home Builders are most definitely not! Fully transparent, appointed and audited by Government.

For everything – Everything and anything that can and does arise when buying and living in a new home. Dealing with buyers’ complaints including misleading and incomplete marketing information and underhand selling practices, unfair contracts, poor build quality, defects, non-compliance with Building Regulations and/or warranty standards, inadequate or indifferent after sales service, conflicts of interest, tenure and boundary issues, contractual disputes – with the New Homes Ombudsman being able to order housebuilders and/or new home warranty providers to pay buyers justifiable and meaningful compensation awards.

The New Homes Ombudsman must be fully-independent and government-appointed, NOT one of many “Ombudsman” in the Ombudsman-services.org who act as little more than an outsourced dispute resolution service to various sectors. Cost Effective Dispute Resolution (CEDR) is not going to work either!

But the New Homes Ombudsman should not be part of a wider, ‘one-size-fits-all’ one-stop, general purpose “Housing Ombudsman” as the current rhetoric from Government would indicate. I was horrified that merging the various existing residential Ombudsman into one “Housing Ombudsman” is being given serious consideration even though it would also include a mechanism of independent redress for new homebuyers for the first time. Whilst this is better than the complete absence of any independent means of redress that new homebuyers currently have, it would not be in the best interests of new homebuyers if the badly needed New Homes Ombudsman was set up as part of a wider “Housing Ombudsman” service.

It would take a considerable amount of time and presumably new legislation to combine the existing ombudsmen into one office. Furthermore, the new-build industry is sufficiently large and errant to fully justify a dedicated New Homes Ombudsman of its own – which would specialise in the many unique issues and technicalities of the new-build sector. Camouflaging a New Homes Ombudsman under the umbrella of a general “Housing Ombudsman” would also make the New Homes Ombudsman less conspicuous to the very people who would need and benefit from it.

Housebuilders and warranty providers operational basis is to ‘bat away’ buyers’ complaints and warranty claims rather than work in the consumer’s best interests. Despite many years of opportunity, this isn’t going to change. It is now time, as I would hope this Inquiry will conclude, that UK new homebuyers were given something from this government. A small concession that if (or rather when) they are unfortunate enough to discover major, preventable defects in their new home, or housebuilders fail to rectify defects in a timely manner, they can apply to an independent, government-appointed New Homes Ombudsman who could award justifiable and meaningful levels of compensation.

As Communities Secretary Sajid Javid MP announced on 29 November 2017 recognising the need for an Ombudsman to give new homebuyers a form of redress, I would hope, following the recommendations and evidence I have submitted to this Inquiry, he will announce that a stand-alone independent New Homes Ombudsman will be now be set up by the end of 2018.

In the past, government ministers and the DCLG have been hoodwinked into believing that the industry’s own voluntary Code, the new home warranty and the building regulations offer sufficient protection for new homebuyers. Government also believed that consumers are “more likely to be supported by independent professional advice from lawyers and others capable of giving advice top their clients and because the terms of the contract are more likely to be negotiated.” and “they can take action through the courts for monetary compensation.”

However, despite the obvious need and benefits a New Homes Ombudsman would give consumers, many within the industry, will maintain that a fully independent New Homes Ombudsman is not necessary. Their lobbyists, the Home Builders Federation (HBF) claim “the overall quality of new homes has never been higher than it is today” stating that “the overwhelming majority of people are happy with their new homes. In the small number of cases where buyers encounter problems the industry is fully committed to completing them as soon as practically possible.”

This is quite simply, not the case.

 

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Sajid Javid’s Housing White Paper – Britain’s Broken Housing Market

“We were promised a White Paper, but we have been presented with a white flag – feeble beyond belief”.. said John Healey shadow minister of state for housing. Others commented it was a “predictably damp squib” and a “missed opportunity.” Even Redrow said it was “disappointing” with chief executive John Tutte saying the housing white paper was very light on details and he was surprised it was more of a consultative document.  This is hardly surprising as the stench of the Home Builders Federation (HBF) was all over this housing white paper, an example being the caving into pressure from the likes John Tutte regarding newts “delaying” new home buildingSajid Javid the builders puppetBritain needed ‘Donald Trump’ style action and got a Donald Duck builders’ puppet. “Hard-hitting” proposals were watered down to Westminster’s famous thin gruel, generally becoming ideas for consultation, subjects for further discussion and situations to monitor. This 104 page housing white paper is little more than a plan for more talking and a missed opportunity for decisive, positive action.

On Tuesday DCLG secretary Sajid Javid declared that Britain’s housing market was indeed broken. With the average home costing eight-times average earnings and a total of 2.2 million working households with below-average incomes, spending a third or more of their disposable income on housing, it’s hard to disagree! Mr Javid claimed his housing white paper will provide “radical lasting reform” to fix it.

Continue reading

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Commons Debate Leasehold New Houses Scandal

“The PPI of the house building Industry”

The APPG for Leasehold and Commonhold Reform managed to secure a debate in the commons chamber on Tuesday 20th December 2016 to discuss the leasehold new houses scandal. With 53 APPG members, it was surprising that only 13 MPs and Housing Minister Gavin Barwell attended initially. I previously highlighted the scandal of leasehold new houses on 7 November 2016 entitled “The next mis-selling scandal” This phrase apparently being picked up, with the Labour MP for Ellesmere Port and Neston, Justin Madders calling the practice during the debate as “the PPI of the house building Industry”. See also Never buy a leasehold new house 28 October 2016

leasehold new houses scandal

Leasehold new houses scandal

LeaseholdAn analysis by the excellent campaign group  Leasehold Knowledge Partnership (LKP) in November 2016, revealed that 8,775 new-build leasehold houses totalling nearly £2billion were sold in England and Wales last year. In all around 45,000 new houses have been registered as leasehold. Many of these bought with help from taxpayers’ through the Help to Buy scheme. In most cases, the housebuilder sells the freehold after a couple of years to a private company, which can then demand extortionate fees from homebuyers.

Continue reading

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Annual Report 2015/16 – Consumer Code for Home Builders

The first  Annual Report by the Consumer Code for Home Builders since April 2014, was finally published this month.

In May 2014, I asked the question, Is the Consumer Code for Home Builders (CCHB) fit for purpose? In March this year I wrote that the Consumer Code for Home Builders is failing new homebuyers. This voluntary code was launched in April 2010 and has been inadequate and failing new homebuyers ever since.

In July, a report published by the APPG Inquiry Into Quality of New Homes found that:

  • “The Code [Consumer Code for Home Builders] does not appear to give homebuyers the safeguards we think they should expect.
  • It does not appear to us objectively to offer consumers a wholly satisfactory form of redress.
  • The Consumer Code for Homebuilders is limited in its scope.”
APPG Inquiry Report Publication 13 July 2016

APPG Inquiry recognises a government-appointed New Homes Ombudsman should be set up.

The APPG Inquiry “Key recommendation” is the setting up of a government-appointed New Homes Ombudsman.  It said that the Ombudsman:  would need to be completely independent and replace the dispute resolution service offered as part of the Consumer Code for Home Builders.”

Continue reading

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Sign The Petition For Better Quality New Homes

With  greater protection for those that buy them!

The only way the housebuilding industry will change for the better, is if enough people sign this petition. This Government is pre occupied with its blinkered approach to increasing quantity of new homes being built, throwing billions of taxpayer’s money at housebuilders in the process. Just last week another £5bn was earmarked for an industry that cares so little for its own customers and the quality of the product they sell.

APPG Inquiry ReportAn all party group of MPs had an Inquiry last year Into the Quality of New Homes. The Inquiry Report made ten recommendations, including the number one “key recommendation” the setting up of a New Homes Ombudsman. All of the recommendation have the potential to not only force housebuilders to improve the quality of the homes they build, but also give those that buy new homes better protection via access to a New Homes Ombudsman.petitionWe have been here before with the Barker Review of 2004, Office of Fair Trading Market Study of Home Building in the UK October 2008, and now more recently the APPG Inquiry 2016. Yet surprisingly, there has not been any legislation to force this failing industry to improve.

Continue reading

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

Why do so few new homebuyers complain and go public?

This was a question I was asked at the APPG last November. Surely, if there was a real problem with the quality of new homes, why is it that so few actually complain and go public with their experiences? It is a question I often ask myself, knowing as I do that 93% of new homebuyers will report problems to their housebuilder very soon after being handed the keys.  Imagine the public outcry if 93% of new cars went back to the dealer for faults to be fixed after a few days or weeks! Indeed, if new homes were cars they wouldn’t be fit to go on the roads! So why is it that out of a potential 129,300 people that bought a new home in the year to 30 June 2016 and reported problems to the housebuilder, most chose to stay silent? Even more astounding are 86% that the HBF claim “would recommend their housebuilder to a friend” – although the HBF 8-week customer survey results appear to be being manipulated by the big housebuilders.

Adversely  affect the future value – more difficult to sell

Lord Richard Best said: “I think another factor could be that people don’t want to moan about their new home having invested such a large amount of money, and knowing that one day they’re going to sell it to. It’s counterintuitive to rubbish something that you’re going to sell later, which you’ve invested so heavily in.”

Continue reading

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

APPG push for Implementation of New Home Inquiry Report Recommendations

It has been nearly three months since the APPG Inquiry Report Into the Quality of New Homes was published along with its recommendations on 13 July 2016.APPG Report Publication 13 July 2016

After some not inconsiderable enquiring to the APPG MP’s, I was contacted by Helen Hayes (pictured below) last week who has kindly updated me and confirmed the current situation:

Labour MP Helen Hayes

“The APPG’s inquiry report has now been published and has been presented to the government for a response.  Oliver Colvile has met with the Prime Minister to discuss it, and I understand that the initial response was quite positive.

The APPG awaits the government’s formal response, and when Parliament resumes sitting we will seek to chase this if it is not provided in a timely manner.  It is not within the power of an APPG to implement the recommendations of the report, as this is a matter for the government, and the setting up of a new Ombudsman would require legislation which it would be for the government to introduce – even if the government takes up this recommendation, which I hope they will, this would take some time to progress through Parliament.

All members of the APPG are fully signed up to the recommendations of the report and will continue to work towards their implementation through the routes that are available to us as back bench MPs and members of the APPG.

Continue reading

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

The new NHBC ‘Register of Site Managers’.

The NHBC launched its Register of Site Managers earlier this year. Their press release on 9 March 2016 said:

“Recognising the key role that site managers play in delivering high quality new homes, NHBC has developed a dedicated online resource to support them and assist in their development. With over 1,200 users in the first weeks, NHBC OnSite is an online resource providing site managers with access to a host of technical resources and career support and in addition, allows them to build their personal profile.”

It should be noted that the early take up could have been due to the free prize draw (an iPad Air 2, 16GB) for site managers signing up to NHBC OnSite before 30 April 2015.  www.nhbcsitemanager.co.uk

Continue reading

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter