Tag Archives: customer care

Latest HBF Customer Satisfaction Survey shows new home quality is still falling

HBF Customer Satisfaction Survey Results 2017

HBF survey results 2017. After a long and unexplained delay, the Home Builders Federation (HBF), with an income of over £3million (2015), mostly funded by its member housebuilders, finally published its annual New Homes Customer Satisfaction Survey Results and house builder star ratings for 2017 late yesterday. Unlike the rest of us, housebuilders have known their scores throughout the year in real time, thanks to the NHBC online portal providing monthly updates on just how their customers are rating them.
HBF Survey 2017So why the delay HBF?  What possible reason could there have been for requiring a total of 12 weeks, two more than in 2016, since the last customer responses for the HBF survey year to 30 September 2016, were received on the 14 January 2017 cut off?  By strange coincidence, it was the same day that Article 50 was triggered, making it unlikely the poor survey results would get any media attention with all the Article 50 coverage.
Did the HBF decide it was a good day to bury their bad news?

Perhaps calculations were being done to effect an overall more favourable impression of customer satisfaction with new homes. Perhaps there were discussions about including late, more favourable surveys and ruling out unfavourable responses on the grounds of invalidity?  Perhaps the PR spin was more difficult to write this year? Who knows?  Certainly not me.  Even though the HBF Chief Executive Stewart Baseley stated on national radio just last month that he is “a great believer in transparency”, the HBF survey remains a mystery to all but those involved in its carefully scripted questions and the statistical “methodology set out by the NHBC themselves” used in the analysis and validation of the survey by the University of Reading’s Statistical Service Centre.

The HBF survey is used by the industry to  give the impression of high quality new homes when the opposite commonly the case. The HBF’s main aim is to use the survey for “promoting awareness of increases in quality and rebut negative claims on build quality.”  The HBF do not publish more detailed company results as they tell me it “would most certainly have provided food for those who are prejudiced against the industry and simply seek to criticise.” So much for transparency Mr Baseley! The HBF confirm they have “launched a review of the scheme” with the NHBC for no other reason than “to ensure the survey is seen to be as robust as possible.”

In their press release, the HBF say:Ipsos MORI has recently undertaken a full independent review of the Customer Satisfaction Survey and its processes. The report concludes that the survey approach and processes are consistent with best practice, that it is ‘fit for purpose’ and is a robust measure of customer satisfaction in the new homes industry. The industry will now be reviewing the recommendations made.” Hardly unsurprising given that Ipsos MORI has “acted as a consultant” as far back as 2006! Is this a cynical attempt to head off any likelihood of a truly fully-independent new home customer survey being required as recommended in the APPG Inquiry Report?

The Report from the APPG Inquiry Into the Quality of new homes Recommendation 10: stated:

Housebuilders should make the annual customer satisfaction survey more independent to boost customer confidence.
“We believe it would boost consumer confidence if the Customer Satisfaction Survey is seen to be more independent of the NHBC and the HBF – bringing in a high profile third party to conduct and take ownership of the research in their name. Furthermore we would like to see more in depth research on consumer trends based on the follow up survey carried out by the NHBC in their nine-month survey. We feel this could provide a real insight into how builders are tackling initial defects and complaints.”

At the APPG Inquiry, the NHBC confirmed that the results of their 9-month customer satisfaction survey were typically 5 to 10% lower than the 8-week survey. No wonder these results are never made public! So much again for transparency Mr Baseley!

HBF New Home Customer Satisfaction Survey results 2017
HBF Survey 2017So here it is at last, Britain’s only new home customer satisfaction survey, conducted by the industry for the industry. The sole purpose of the HBF survey being to “rebut negative claims on build quality”. But the facts speak for themselves, even in a survey conducted by the industry and quite probably manipulated by housebuilders.

HBF Survey 2017 results show satisfaction is down

During the survey year to 30 September 2016, the NHBC registered as complete around 140,000 new homes, of which about 80% (112,000) being privately sold and potentially eligible to be part of the HBF customer satisfaction survey. As in previous years, only new homes with an NHBC warranty (around 80% of new homes) will almost definitely (81%) receive a survey, provided that these homes are not rented by buy-to-let private landlords. Out of an approximate potential 112,000 privately sold new homes, the NHBC sent out 90,501 surveys on behalf of the HBF with 52,290 returned, a response rate of 57.7%.

The HBF Survey Star Rating “sample” size totals 39,014 out of the total 52,290 surveys returned! This indicates that 13,276 (25.4%) of the surveys returned were not used for housebuilder star rating!  I asked the HBF why?

The HBF told me: “Whilst the ‘industry survey’ covers more than HBF members, the Star Rating part of it is just for HBF members. Hence adding up the sample sizes for the Star Rated builders will not get you to the total 52,290 responses.HBF survey sample sizesHBF Survey – What it tells us:

The overall ‘satisfaction’ score is 84%, down again for the 4th year running and at its lowest level for nine years!

A record number of new home buyers, 98% (up from 93% last year) that returned the HBF survey, reported problems to the housebuilder (within the first 8-12 weeks) with over four in ten (41%) reporting more than 10 problems – a 3% rise on last year.

Bovis get a HBF Survey 2 star ratingBovis Homes, Britain’s 6th largest house builder by volume, have seen their HBF customer star rating plummet over the last four years, from a 5 star rating in 2013 to just 2 stars today. Considering the company is to spend £7million to repair poorly-built new homes sold to customers over the last two years, it is surprisingly to say the least, that their HBF star rating implies over 60% of the Bovis’ buyers that returned the HBF survey, would still apparently “recommend Bovis to a friend.”
Can the HBF Star rating be believed?It is questionable how much influence housebuilders are exerting on recently moved in buyers to complete the HBF survey to show them in a more favourable light, despite a great many having incomplete homes, serious defects and overall poor quality homes. From free patio slabs, to £250 John Lewis vouchers and offers to “help” complete the HBF survey – it’s all being done to manipulate a better star rating, against HBF rules but with HBF knowledge.

Yet still the HBF PR machine spins false information:

It's always better to tell the truth!“The overwhelming majority of new home buyers are happy with their new home” say the HBF “Housebuilders remain committed to delivering the high quality product, and responding appropriately when issues arise” So why do they repeatedly fail to do either so often? Both Taylor Wimpey and Persimmon said they were addressing it over 12 months ago, yet their satisfaction scores are lower.

“Since the survey was launched more than a decade ago scores in all question areas have improved significantly” Not true the number of buyers reporting problems was 93% then, it’s 98% now! In addition the 2006 HBF survey was from a very low base with 57% of builders rated 3 stars or less and a sample size of just 15,000 surveys returned.

“The past 3 years have seen a slight fall back in scores, something the industry is actively addressing.”  I think you’ll find that was the last four years! Whatever the industry is allegedly doing, it isn’t having any positive or apparent measurable success.

Even Secretary of State Sajid Javid said earlier this week: “It’s fair to say that new builds don’t always have the best reputation for quality…..this isn’t a new issue” So why isnt the government doing anything about it? Even the industry’s own Customer Satisfaction HBF Survey latest results show it’s bad, it’s getting worse and still nothing is being done about it!

In another attempt to paint a more rosier picture of this broken industry, we have the New Home Review (NHR) which says it “provides a unique, independent insight into the quality of new homes being built for sale and the level of customer satisfaction, based on feedback directly from new home owners..”

The survey is supposed to be anonymous but buyers need to add their housebuilder, address and postcode. The website is owned by MD Insurance who run both LABC warranty and Premier Guarantee! They also administer the Consumer Code for Home Builders. This survey cannot be regarded as independent!

The survey published thus far, is I believe, little more than an opportunity for self-justification of yet another industry survey and with just 1,000 surveyed, these results can be regarded as pretty meaningless.

In time, dependent on the average customer satisfaction score, the following ratings are awarded:

Customer satisfaction score:
  • Diamond: 81% and above (HBF equivalent – 4 & 5 Star)
  • Platinum: 71% to 80%       (HBF – 3 Star)
  • Gold: 61% to 70%               (HBF – 2 Star)
  • Silver: 51% to 60%
  • Bronze: 41% to 50%

So under the “New Home Review” even a dodgy two star house builder will be able to display a “Gold” customer satisfaction rating logo, confusing and deceiving consumers.

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Fitting carbon monoxide alarms in new homes should be mandatory

Carbon Monoxide Alarms

The fitting of carbon monoxide alarms in new homes should be a mandatory requirement of the Building Regulations in England and Wales.  It may come as a surprise to learn that every year over 4,000 people are admitted to hospital with carbon monoxide poisoning that could lead to brain damage and strokes – with 40 fatalities recorded in England and Wales. One in nine British homes have boilers classified as unsafe.

The new home defect that kills

You can’t see it, you can’t smell it. Carbon Monoxide – the new home defect that kills!

In Scotland and Northern Ireland, the equivalent to the building regulations, requires a BS EN 50291 kite-marked carbon monoxide alarm to be fitted when any new or replacement fuel appliance is installed (except cookers). This covers any fuel burning appliance, including those that burn gas, oil, coal and wood. The alarms must be fitted in any room with the appliance or if it is an enclosed boiler, just outside the enclosure and any room that has a flue running through it. Alarms can be mains or battery powered but if the alarm is battery powered then the battery should last for the life of the alarm.

No requirement in England and Wales:
But the Building Regulations for England and Wales, Approved Document J, only require carbon monoxide alarms to be fitted when any new or replacement solid-fuel appliance is installed. Examples of solid fuel burning appliances being wood burners, open fires etc. There is also additional legislation requiring a carbon monoxide alarms to be fitted in all rented residential accommodation with gas appliances, but not in owner-occupied homes.

Around 84% of UK homes now have smoke detectors but only around 15% have carbon monoxide alarms, putting countless families in danger. Fitting carbon monoxide alarms could save many lives. But currently there are no regulations that require the fitting of carbon monoxide alarms in new homes with gas boilers installed.

Following on from my article Is your new home killing you? about instances of carbon monoxide poisoning in newly built homes leaking from gas boilers, I asked the NHBC – given the industry’s chequered history of carbon monoxide leaking from gas boilers/boiler flues installed in the homes under its warranty – if it thought that a carbon monoxide alarm should be fitted in every new home with a gas appliance? If so, why hasn’t the NHBC included this as a requirement in the latest 2017 Warranty Standards?  I was quite shocked by the reply:

“Thank you for your email to our Chairman; she has asked me to respond. As you may be aware, issues of health and safety are dealt with through statutory Building Regulations, which are set by government. Approved Document J ‘Combustion appliances and fuel storage systems’ does ask for a carbon dioxide alarm to be provided where a solid fuel appliance is located but there is currently no similar requirement in the case of gas appliances.

I would therefore suggest that you may wish address your enquiry to government department responsible for Building Regulations – the Department for Communities and Local Government.

The Head of Technical Policy at the Building Regulation and Standards Division is Richard Harral and his email address is: richard.harral@communities.gsi.gov.uk.”

So I duly contacted Mr Harral at the DCLG on 1st February and received his reply, 12 days later, confirming that he had “passed this on to the policy lead who oversees Building Regulations requirements for Carbon Monoxide alarms. He will provide a response in due course.” Mr Harral also pointed out that “responsibility for Building Regulations in Wales is now the responsibility of the Welsh Government.”

I had previously e mailed communities secretary Sajid Javid and housing minister Gavin Barwell regarding ongoing instances of dangerous gas boilers in new homes. This was the response from the DCLG:

“Thank you for your email of 17 January 2017 to Sajid Javid and Gavin Barwell, raising concerns about the quality of new homes. I have been asked to reply on their behalf.

In relation to the concerns you have raised about dangerous boilers. All heat producing gas appliances and their flues must be installed by installers registered with Gas Safe Register, a statutory registration scheme under the Gas Safety (Installation and Use) Regulations 1998. The enforcing authority for these regulations is the Health and Safety Executive and complaints about installations that are considered unsafe should be made to it.

There is a requirement that the installation of gas appliances be self-certified as compliant. However, these certificates are evidence, but not conclusive evidence, of compliance. This means that building control bodies could take formal enforcement action where work was found not to comply despite a self-certificate having been given. It also means that the building owner would be able to make a claim in the civil courts.”

So basically no requirement is considered necessary by the standards setting authorities or the government. Furthermore, formal enforcement action is not required and would not be taken by anyone, until it became known a boiler was leaking carbon monoxide, by which time it could be fatal and too late. Quiet how the “building owner would be able to make a claim in the civil courts”  I don’t know, they could be dead!

Although not a new-build home, 31 year-old Katie Haines was killed by carbon monoxide in her cottage shortly after returning from her honeymoon in February 2010. The Katie Haines Memorial Trust, set up a petition to lobby the Government to make CO alarms compulsory across the UK, in a similar way to smoke alarms.  It closed on 30 March 2015 and attracted 5,321 signatures, not enough to trigger the government into action.

Her mother said at the time:
“Two young men died in Northern Ireland the same year as Katie and legislation both on council and government level has been pushed through quickly. We feel that we should have the same duty of care in England and Wales.”

Carbon Monoxide AlarmsBut seven years later, there is still no legislation in England and Wales for mandatory fitting of carbon monoxide alarms in new homes where gas appliances are installed, yet there is in Northern Ireland and Scotland!

Despite the lack of any mandatory regulations requiring carbon monoxide alarms to be fitted in all new homes with gas boilers, the three largest housebuilders have all confirmed to me that they now fit carbon monoxide alarms “as standard” in every new home with a gas appliance.

Persimmon homes said:
“It has been Persimmon Homes’ group policy since September 2012 to fit a carbon monoxide detector/alarm to all properties with a gas fired appliance of any type. Current models include the CO-9BT or similar approved models.”Carbon Monoxide AlarmsTaylor Wimpey said

“Thank you for your email, the contents of which are noted and which relates to a matter which we take very seriously.

We are aware of the tragedy that you refer to in your email, which took place at the Barratt Bedfont Lakes development in 2008.

Following a detailed review that we undertook in and around 2011, since 2012 (when we also commenced the phasing out the use of extended gas flues) we have required all of our business units to fit CO monitors in all homes with gas appliances. Our policy is to fit CO monitors in all rooms where a gas appliance is fitted – in some homes, this could involve the fitting of multiple monitors including in rooms with a gas boiler, gas hob or gas fire/s. There is further instruction issued on how that is done, and the positions of the monitors is shown on the house type drawings and customer drawings which the sales executive will run through with our customers.

Please find attached an information leaflet on the Honeywell XC100, which is the monitor that we currently fit. In 2012, we also undertook an exercise of raising the profile of the risks of CO to both customers and homeowners and this included making available free CO monitors retrospectively.”

Barratt confirmed bluntly:
“Yes, we fit CO detectors to all houses and apartments which have a gas boiler.”

But do they? I asked new home buyers in the Unhappy New Home Buyers Facebook Group if they had Carbon Monoxide alarms fitted in homes built by these builders:

Two Barratt new homebuyers responded, one said they had, the other said : “when we moved in in June 2011, we didn’t have one even though it was listed on the specification. It took the Customer Services Manager multiple attempts to deliver one….. we now have a couple of spare central heating control units which he delivered by mistake…”

The few Taylor Wimpey buyers who did respond, all confirmed they had a CO alarms fitted.

Carbon Monoxide The Persimmon homebuyers that responded, overwhelmingly that demonstrated that many Persimmon homes would appear not to have CO alarms fitted, despite the company confirming it was “group policy since September 2012 to fit a carbon monoxide detector/alarm to all properties with a gas fired appliance of any type.”

All twelve Persimmon buyers who responded, confirmed they didn’t have a carbon monoxide alarm fitted: six bought in 2015, two in 2014, two in 2013 and one in 2012. Another buyer said his whole street haven’t a CO alarm fitted!

When I notified Persimmon of this they said:
If you can supply me with the names, addresses and phone numbers of each of the people I’ll gladly get in touch with them.”

It should also be noted that these are battery sealed-for-life CO alarms and need to be replaced every 7 to 10 years.

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Bovis give buyers £3,000 cash incentives to move into unfinished new homes.

Bovis Homes

Just when I think there isn’t anything else this industry can shock me with – coverage in the national press has revealed that Bovis Homes offered “bribes” of up to £3,000 to their buyers if they legally completed or moved into unfinished new homes on or before 23rd December 2016. This was done in a vain attempt to meet the City forecasted target of 4,170 completions for their financial year-end.

The “incentives” were offered to buyers just days before Bovis issued a profit warning, stating that 180 homes were “being deferred into early 2017” resulting in profits lower than previously expected. Equity analyst Anthony Codling at investment bank Jefferies, told The Times: “This will be where they are trying to make their targets. They would have been trying their hardest to complete those homes to get people moved in before Christmas. There is pressure from an investor perspective to meet the volume target and they will do what they can to meet those targets.”

Other analysts said that the cash incentives from Bovis were part of a failed attempt by the FTSE 250 company to meet City targets saying Bovis’ share price had “substantially underperformed the sector over the last seven years.”

Have Bovis Group attempted to deceive investors and the City as to the true year-end results of the Company, by pushing through legal completions (sales) on new homes that were not 100% finished at year-end? I am no expert on financial reporting regulations but more is here.  Perhaps this is something that the Financial Conduct Authority [FCA] should be investigating.

Outraged buyers have taken to social media complaining about Bovis asking them to legally complete on unfinished homes with no driveways, windows, paths, gardens, unpainted walls and even the wrong kitchen units being installed. The Facebook Group “Bovis Homes Victims” now has over 1,000 members, as media reporters and others join to find out what buyers are saying about the company on the Closed group.

Rob Elmes, 32, told The Times he refused to accept an initial offer of £2,000 to complete on a three-bedroom £320,000 home in Worcestershire and was offered £3,000 four days later to legally complete on 23rd December. Mr Elmes refused, saying that his home was not yet finished with workmen still in the house and his drive unfinished. To compound matters, Bovis have even managed to fit the wrong kitchen!

Bovis have admitted that customers had been offered an incentive to complete before the year’s end, but claimed that no one was forced to move in before Christmas.

A spokesman from Bovis said: “Customers were clearly free to decide their preferred course of action. The Group often offers a range of incentives at sale and completion in line with industry practice.”

The firm said that all homes “were habitable”, with the required industry certification as per the Council of Mortgage Lenders’ Handbook Rules. A Bovis spokesman said: “A limited number of customers were offered an incentive to complete before the year end and all homes were habitable with the requisite CML industry certification, with a timetable for outstanding finishing works to be carried out in the New Year”

However the reality would appear to be different and members of the Bovis Victims Facebook Group were quick to add their experiences. One member who has asked not to be named, said she was initially told she was due to move to her new Bovis home in October.” She posted: “We were offered £2,000 by Bovis to complete early on 23 December and told we’d be able to move in to our home over a month later on January 27th. We decided not to take the offer due to the shaky legality and were assured this wouldn’t affect the build. We’ve just been informed our anticipated completion has now moved to 31 March”

How could these homes be regarded as “habitable”? It can hardly be substantially complete if it will take up to three further months to complete the “outstanding finishing works.”

On 23rd December, posts on the group included: “Bovis want us to complete today and move in and [sic] the end of January.” Another Bovis buyer claimed that even if they had accepted Bovis’ cash offer they were unable to legally complete because Bovis had “not completed the correct Help to Buy document.” In addition, forcing or coercing buyers to legally complete on unfinished houses is not new. One posted that they were put in a hotel for 10 days as Bovis would not wait till after Christmas back in 2013. They wanted to complete asap. Been a fight ever since”

Bovis told The Guardian: “We recognise that our customer service has to improve and the leadership of the organisation is absolutely committed to getting this right.” This came just two days after Bovis CEO David Ritchie “resigned” who admitted a “limited number” of customers were offered an incentive to complete before the end of the year, but no one was forced to move in.

Bovis Apologises

On another Bovis development, the company has finally bowed to pressure and has apologised to buyers for problems at two sites in Norfolk. A Bovis’ spokesman said:

“We are working with our customers at Costessey and Cringleford to resolve their issues and we take their complaints very seriously. We recognise that in some cases at these locations we have not provided the standard of home that we pride ourselves on, for which we apologise. We also recognise that our customer service has to improve and we are absolutely committed to getting this right and are taking actions to put in place robust procedures and practices to rectify issues such as these and prevent them from occurring again.”

My award for ‘best headline’ currently goes to The Sun with “Bovis and Butthead”

Council of Mortgage Lenders (CML) Rules

The CML website states:
“Under rules introduced in April 2003, to help eliminate the practice of builders allowing occupation before the home is completely finished, the Council for Mortgage Lenders’ (CML) initiative requires builders to obtain a completion certificate. This is issued by an independent Building Inspector, normally the NHBC, following a satisfactory final inspection of the property. The lender requires this completion certificate, along with confirmation that the new home warranty is in place, before they release the mortgage funds.  

It is common for the Final Inspection to be made 14 days before the completion date. This will give the solicitors and mortgage provider time to arrange for the funds and provide you with an opportunity to inspect your finished home.”

Could those Bovis buyers, in accepting the “incentive” payments and legally completing on an unfinished and uninhabitable new home, be innocently complicit with Bovis Homes, the solicitors and the warranty inspector in potential mortgage fraud? The homes would not have been in the condition on completion and therefore the full value, that the lenders believed. Even more, those bought using Help To Buy may have, proportionally, also defrauded the taxpayer!

The Council of Mortgage Lenders told me:
“We can’t comment specifically on these cases in relation to mortgage fraud, as I am sure you’ll understand. I think our members will be concerned about the emergence of this practice, [payments to buyers to legally complete on unfinished new homes] however – as you rightly point out, this practice shouldn’t be able to happen as the properties must be inspected and signed off as complete for habitation; the use of a cash incentive will also potentially distort the true value of the property if the valuer is unaware of it.

For clarity, the CML does not have its own ‘certification’ process in relation to new homes completion. We think this reference is probably to the CML Lenders’ Handbook, which is a set of instructions to conveyancers. In that, it stipulates that lenders require a form of new home warranty (such as an NHBC warranty) to be in place prior to completion, which the conveyancer checks as part of the conveyancing process. This requirement was introduced some years ago to prevent this very issue. It may be useful to contact warranty providers, to establish how they think this might be happening.”

Indeed it might; so I did. I asked the NHBC how it was possible for a CML final inspection certificate to be ‘signed off’ by the NHBC inspector? Especially when some of these houses were clearly far from finished requiring in one case, three months work! Another had not been decorated.

The NHBC said:
“All homes registered with NHBC are inspected at key stages of construction. This includes a pre-handover inspection, which is designed to ensure that the property is fit for occupation and that our 10-year warranty cover can be provided. Where people do experience issues with their new homes we offer protection under our warranty for 10 years, including a free Resolution service in the first two years. We would encourage homeowner (or constituents) with concerns about their new home to get in touch with us so that we can offer them our help.” 

Not exactly enlightening is it? Again, how is it that any of these homes are judged finished and “fit for occupation”? On 6th January, NHBC Chief Executive Mike Quinton quit after four years – three days ahead of David Ritchie’s “resignation” as Bovis’ CEO.

NHBC Guide to CML InitiativeUnder the CML rules introduced in April 2003, a lender will not release the mortgage funds for a new property until the buyer’s conveyancer has received confirmation, in the form of a cover note, that the property has received a satisfactory final inspection and that a full new home warranty will be in place on or before legal completion. In an excellent article (March 2010) Building.co.uk highlighted that the “A Guide to the CML Certificate” ended with a warning stating that: “If [the consultant] signs the certificate and defects are subsequently found to affect the property, it is highly likely that they will face a claim on their professional indemnity insurance some way down the line.”

You also have to question quite what, (if anything) the buyer’s solicitor entered into the CML “Disclosure of Incentives form” (Section 10) for those that chose to take the Bovis’ incentive!

HBF Buyers’ customer survey ratings

This letter breaches HBF rules 23,24 & 25.It would appear that Bovis are also manipulating the HBF Customer Satisfaction Survey. Bovis Homes, rated just three stars by its customers for the last two years, has allegedly offered John Lewis vouchers to buyers in return “for giving good feedback on the NHBC survey” Whilst not uncommon within the industry, this is clearly against the HBF Star Rating rules 21,22,24 and 25.

Barratt, Persimmon and Taylor Wimpey distance themselves from this latest scandal

Last Thursday Tom Knowles reported in The Times that the country’s biggest housebuilders were distancing themselves from the scandal, in particular Bovis’ claims that cash payments to buyers to legally complete on unfinished homes was “in line with industry practice.

The scandal has led to Oliver Colvile MP, chairman of the All Party Parliamentary Group For Excellence in the Built Environment, to call for a debate into the standard of new homes, he said: “We will try to have a debate in the House of Commons about the quality of new-build housing. We need to press the government to do more.” In July last year, Mr Colvile and a group of MPs published their Inquiry Report detailing ten recommendations, which included my suggestion that buyers or their surveyors, have a mandatory right to inspect their properties before they complete their purchase. Many Bovis new home buyers have complained they were not allowed to enter their homes until the day of completion and on doing so, discovered workmen attempting to complete the works in time.

In a statement Bovis suggested offering cash to customers to complete by a certain date was “in line with industry practice”, but the three biggest housebuilders, Barratt, Persimmon and Taylor Wimpey, said that they never make this offer. Ryan Mangold, chief financial officer of Taylor Wimpey, said: “We have never given cash incentives to get buyers to move in by a certain date.” Peter Truscott, chief executive of Galliford Try, said that while developers occasionally offered investors buying several homes, cash incentives to complete by a set date, this was not the case for individual customers. The Home Builders Federation said: “It is not common industry practice to offer cash to new home buyers to complete early.”

However, a Persimmon homebuyer posted on ‘Unhappy New Home Buyers’ Facebook Group:
I read that about this morning in The Mail. Persimmon tried this on lots of our purchasers including us in 2010, but for some reason we had put our money in a 6 month Bond and told them where to go…..needless to say we won….but our neighbours moved in with Windows missing!, Trouble is it did not do us any good because we had so many problems, and still have some, we pay out for some things ourselves, but some [sic] we live with!”

A spokesman for Bovis told The Times:
Each individual customer was approached on a case-by-case basis and, where appropriate, they were offered the opportunity to move into their homes in time for Christmas with an agreed timetable for outstanding finishing works to be carried out in the New Year. Customers were offered help in the form of payments for a range of reasons in light of the extra costs they would incur by doing so . . . Similarly, some customers were offered compensation payments as a gesture of goodwill in light of the added disruption over the festive period.”

The scandal is so serious that several MPs have said they could raise the issue in Parliament. Among them are Labour MP Melanie Onn, former Tory housing minister Mark Prisk and as mentioned earlier, APPG EBE Chairman Oliver Colville MP. However the fact of the matter is that issues such as these are not new. The APPG EBE ‘Inquiry Into the Quality of New Homes In England’ found that “as the number of homes being built increased, the quality of new homes has declined.” The Inquiry Report painted a damning picture of a broken industry, bereft of any moral compass. It said:

“The evidence points to an industry…which will at times ride rough-shod over dissatisfied buyers… House builders should be upping their game and putting consumers at the heart of the business model…For some, purchasing their dream home turns into a nightmare…Evidence suggested there is a continuing issue with poor standards of workmanship in new homes…At financial half-year and year-ends, the quality is reduced as they rush to meet targets…Housebuilder’s own quality control systems are not fit for purpose…The government must take a lead role to make sure house builders deliver a quality product and service and not just focus on numbers being built.”

Debate or no debate, it is to be hoped that the forthcoming Housing White Paper due later this month, does indeed take note of the ten recommendations of the APPG Inquiry Report and includes measures to address the ongoing quality and service shortfalls of the major housebuilders, especially by undertaking to set up an independent New Homes Ombudsman before the end of this year.

It is my opinion that the buyers’ quotations in this article, reproduced entirely as they were originally written on posts freely available on Facebook,  would be considered by a reasonable person, to be true and the opinions or experiences of these private individuals. This article is my honest opinion of the buyers’ own claims and statements that any reasonable person might also conclude. I believe this is a matter of public interest.

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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.

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The Redfern Review – How Is CEO Peter Redfern Doing At Taylor Wimpey?

peter-redfernIt has been over seven months since Taylor Wimpey released its results for the full year to 31 December 2015 (1 March 2016). This included a statement from Chief Executive Peter Redfern, which recognised improvement was needed with regard to his company’s poor customer satisfaction levels. Perhaps it is time to take stock and conduct our own ‘Redfern Review’.

Peter Redfern said:

“During 2015, we achieved a customer satisfaction score of 86% (2014: 87%). We are disappointed that this has slipped. Whilst we operate in a cyclical market, we strongly believe that a customer centric approach is needed throughout the cycle. During 2015 we completed an in-depth review of every aspect and stage of our Customer Journey, to identify areas of improvement and to deliver a better homebuying experience for our customers. Throughout the review, our focus has been on understanding our customers’ priorities to enable us to deliver at and ahead of expectations. We have also commenced the process of rolling out our new customer approach across the business with a focus on three main areas: our culture, management structure and process. This is to ensure that going forward we deliver the right product, supported by excellent customer service to all our customers at every stage of their journey with Taylor Wimpey.

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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.”

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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.

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Defective Taylor Wimpey new home causes injury to 10-year-old girl

Enough is enough! What will it take before government finally acts, not only to end the misery faced by the majority of people that buy new homes, but also to drastically reduce the likelihood of another death caused by a defect in a new home? Last week a defect in a Taylor Wimpey new home injures a 10 year old girl.

Oliver Colvile MP

Time for action? APPG Chair Oliver Colvile MP

Since the APPG Inquiry published its Report  ‘Into the Quality of New Homes’  three weeks ago, there has been zero coverage of its recommendations in national media. On a personal level, I have written to every single one of the 650 MPs asking for their support and to lobby the DCLG for the introduction of a New Homes Ombudsman. Just one MP has replied so far. Is anyone prepared to do anything before someone else is killed in a defective new home?

On 15th October 2005, a four-year-old boy died from chest injuries after a 50kg (110lb) stone mantelpiece over a fireplace fell on top of him at his Persimmon-built family home in Coulthard Close, Towcester.

In February 2008, Elouise Littlewood was 26 when she died in the flat she owned with Notting Hill Housing Trust built by Barratt Homes at their Bedfont Lakes complex in Hounslow. A post-mortem carried out on the body found the concentration of carbon monoxide in her blood was 77 per cent. Her lodger, Simon Kilby, was left with permanent brain damage after he was discovered unconscious on the sofa.

Only this morning I learned that on 28 July 2016, a radiator had detached from a wall and had fallen on 10 year-old Gemma Fever in the kitchen of the family’s Taylor Wimpey new home at their Rackenford Meadows development in Tiverton, Devon.

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APPG Inquiry – ten recommendations to improve the quality of new homes

The All Party Parliamentary Group Inquiry Into the Quality of New Homes In England has made ten recommendations and says house builders should be “upping their game and putting consumers at the heart of the business model. Alongside this, Government should use its influence to promote quality at every opportunity.” The cross party committee of MPs and construction experts called on the Government [DCLG] to set up a New Homes Ombudsman to mediate in disputes between homebuyers and housebuilders. This is the number one “key recommendation” of 10 recommendations setting out measures to improve the quality of workmanship in new homes and provide consumers with easier and cheaper forms of redress, to get defects and problems fixed. 

APPG Inquiry Report Recommendations:

Recommendation 1: DCLG should initiate steps to set up a New Homes Ombudsman.

APPG Inquiry Report Recommendations“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.  

Although funded by the construction industry [housebuilders] it should be a public body not under the industry’s control. It should provide a cheap, quick and effective system of redress and have power to enforce standards and award compensation. This would put pressure on housebuilders to up their game in the first place and spur them on to improve workmanship and increase levels of service.” 

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Persimmon CEO Jeff Fairburn £93m bonus windfall

“The test of our progress is not whether we add more to the abundance of those who have much; it is whether we provide enough for those that have too little.” …Franklin D Roosevelt

I was disgusted when I first reported on Persimmon Long Term Incentive Plan (LTIP) in April 2013  – I still am.

This week, Persimmon’s LTIP bonuses have come into further criticism and were the subject of universal widespread condemnation. Apart from their PR company spokesperson, no one can possibly agree that bonuses on this scale can be justified, even if there has been exceptional performance. Investment giant, Royal London Asset Management said Persimmon was being insensitive when many were suffering from their failure of house builders to construct enough homes, Mike Fox went further saying the payments were “too high in all circumstances”.   The LTIP payments have been critically publicised this week in The Guardian, Daily Mail, Telegraph, Independent and on the BBC website.

Beleaguered Persimmon buyers across the country must have recoiled in disgust when they learned of the scale of the projected payments that 150 Persimmon executives will trouser over the next five years if, as seems likely, the twice extended, Help to Buy gravy train keeps on running all the way to house builders’ bank accounts until 2021.

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