The waiting is nearly over. Its official! The New Home Ombudsman is coming! A culmination of two years’ campaigning and ten years dedicated work highlighting the plight of UK new homebuyers.
I spoke. They listened!
The APPG Inquiry report is being finalised and is due for publication in “at the beginning of June 2016.”
On Tuesday 17 May 2016, chair Oliver Colvile MP made a speech at the JCT Parliamentary Reception highlighting the findings and the main recommendations.
He said that he, and “many of his Parliamentary colleagues across the country have had new homebuyers coming to their MP’s surgeries to complain about the way their new home was built. Although the report hasn’t been finalised, I can confirm that the Inquiry Committee has agreed on a number of recommendations and I would like to share a few of those with you”
- A New Homes Ombudsman should be set up. This would mediate disputes between consumers and their builders or warranty providers to offer a quick resolution procedure.
- Standardised house building sales contracts should be enforced, meaning uncertainty surrounding bespoke builders’ contracts would be removed.
- There should be a mandatory right for buyers to inspect and, should they wish, carry out a full survey prior to financial completion. More details of this particular point will be announced in the final report.
- To improve transparency, builders should be required to provide homebuyers with a comprehensive information pack. This would include plain English explanations so that homebuyers can understand exactly what they are buying.”
Persimmon issue counter claim to recover cost of repairing new house in Sunderland.
Persimmon Homes, rated just three stars by their own customers in the industry’s “satisfaction survey,” appear go out of their way to be confrontational and intransigent to any customers who take issue with the builder. The phrase “the Customer is always right” isnt even on their radar if this story from the North East Evening Chronicle is anything to go by.
An unhappy Vince Wareham outside his Persimmon new home at Alexander Park in Sunderland.
New homebuyer Vince Wareham told the Chronicle about his shock when he learned Persimmon were taking legal action against him in an £8,000 counter claim, after he decided to take the house builder to court, claiming £2,950 in compensation for remedial works carried out on his new home.
It is not just house building that has dissatisfied customers. However, most other industries have an Ombudsman and official Regulator.
If you bought a new home in the last ten years, the following statements will have a familiar ring to them. After all, the house building industry has a dreadful reputation for both quality and customer service, yet makes every effort to smokescreen and spin the opposite.
- “Stop solving problems…just make the customer happy”
- “staff are under pressure to bat away complaints and instead focus on appeasing callers to boost satisfaction ratings”
- “persuading customers to believe all is fine is more important than getting to the bottom of their problems”
- “All [the company] care about right now is the net promoter score. Staff are rated on this survey it sends out after a call or web chat. Well actually, on the first question only, “How would you rate [the company] to a friend?”
- “one of the advisors I spoke to made promises they didn’t deliver. I wonder if this is the way they are trained – to reassure the customer but actually not to do anything.”
- “other support departments are unhelpful and more interested in their own KPI, pretending they care about customers, but the reality is they are treating them appallingly”
Last July, Mark Clare retired as CEO of Barratt Developments after a nine-year stint in charge. Within a year of David Thomas taking over the helm, Barratt’s unique five-year new home warranty is no more, withdrawn in November 2015 – six years after being first being introduced.In their press release on 17 November 2009 Barratt, Britain’s biggest house builder by volume, proudly proclaimed that their new homes will be covered by a five-year guarantee of fixtures and fittings: “Items covered at no extra cost to the buyer will include appliances such as washing machines and refrigerators, kitchen units, wardrobes, the central heating system, fires, doors, windows, the hot and cold plumbing system, shower doors, sanitary ware and taps, ironmongery, electrical system, internal/external drainage, renewable energy installation (if fitted), and even the boundary brick walls and the driveway” said Barratt.
The idea for a New Homes Ombudsman is not new. I have been campaigning for nearly two years, see this blog, my website forum, the “Unhappy New Home Buyers” Facebook Group and lobbying on Twitter. More recently I attended the APPG Inquiry into the “Quality of New Build Housing in England” and proposed the introduction of a fully independent New Homes Ombudsman as one of a series of measures that would force house builders to improve both quality of the homes they build and the service they give their customers after they discover the inevitable defects and problems.
My proposal for a New Homes Ombudsman was met with widespread acceptance at the APPG Inquiry (2nd meeting) and during the question and answer session; Lord Richard Best said “I chair the property ombudsman which looks after estate agents and things like that and it works well, so at some stage I’d like to explore the Ombudsman concept as a way of trying to handle some of these disputes…..”