Tag Archives: new homes ombudsman

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

Consumer Code For Home Builders Revised

New homebuyers are short-changed as the latest revision to housebuilders’ ‘non-mandatory’ Consumer Code is published.

A year ago, I wrote an article that I showed the Consumer Code for Home Builders (CCHB) is failing new homebuyers.  The all-party parliamentary group (APPG) Inquiry Into the quality of new homes concluded in its Report that: 

  • “The evidence points to an industry…..which will at times ride rough-shod over dissatisfied buyers”
  • 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”

Well it’s about to get a whole lot worse!
In September 2015, the CCHB announced a triennial review of  Code, at that time changes were expected to come into effect in 2016 – “to ensure it continues to evolve with the industry and changing consumer needs and as a result of adjudication cases.” It claims “The industry has now made great strides in producing an updated Consumer Code which is fit for purpose in today’s world”   Talk about hype!Changing consumer needs? Fit for purpose?
Consumer CodeLast week the CCHB published the 4th incarnation of their consumer code, which I believe now contains specific revisions which severely diminish the likelihood of a successful claim by new homebuyers seeking redress and justice from errant housebuilders. The changes, place additional restrictions that can best be described as obstructive, the sole purpose of which is to protect the industry from the very few homebuyers that go through the rigmarole of Code’s dispute adjudication process.

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

Petitions to Government – Are they a waste of time?

The parliamentary petitions system has come under criticism lately when it was revealed that fewer than ten of the thousands of petition appeals launched by the public had led to a change of policy.Petitions debateAs at 3 March 2017, more than 28,400 applications were submitted to the Commons petitions committee in the past 19 months.

The Petitions Committee review all petitions published. The website says they “select petitions of interest to find out more about the issues raised” and “have the power to press for action from government or Parliament.”

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

No Problem With New Home Quality Says HBF Stewart Baseley

Stewart Baseley, Executive Chairman of HBF interview on BBC Radio 4 Today – Saturday 11 February

Stewart Baseley HBFTrue to form the Home Builder’s Federation [HBF] the industry’s PR and lobby group, conducts a perfect whitewash on the facts as their executive chairman Stewart Baseley trots out a well-used, well-rehearsed HBF rhetoric. The two main points the industry is keen to focus on at the moment:
“promoting awareness of increases in output and rebut negative claims on build quality” are well covered. Mission accomplished! Move along there is nothing to see. Money well-spent? The HBF was funded mostly by its house builder members to the tune of £3,037,449 in the year to 31 December 2015.

Questions to Stewart Baseley, Executive Chairman of HBF
Do you accept there is a problem?
“No I don’t accept there is a problem although clearly there are in some cases that you have highlighted some of those on your report and I totally accept that anybody that’s in a situation where they have got a problem, it’s very serious for them.”

“No problem – some cases”
Fact: As Stewart Baseley knows, the NHBC paid out £90million in warranty claims for remedial works to fix serious defects in 11,000 new homes (an average of £8,181 each) in the 12 months to 31 March 2016. That equates nearly 9% of the 124,720 new homes built in the same period. In the previous year, the NHBC spent £86million on remedial works including £23million on foundations and £32million on superstructures to 11,000 new homes.

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

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

NHBC and David Wilson Homes on BBC Radio 4 You and Yours

The BBC Radio 4 ‘You and Yours’ programme on 26 October 2016, was  a great opportunity to further promote the setting up of a government-appointed New Homes Ombudsman and the implementation of the other nine APPG report recommendations. This is necessary because as the APPG Inquiry discovered, both housebuilders and warranty providers are failing new homebuyers despite a record £81million being spent on claims under the NHBC warranty to April 2015. It was disappointing that this Petition to Government was not mentioned.

The recent repeat of a BBC TV documentary, “Inside the Commons” – showed how government works and without a parliamentary debate, the APPG recommendations are very unlikely to be implemented anytime soon. Individual MPs, even if they are successful in the Private Member’s Bill ballot, rarely see their bill become law.

This You and Yours broadcast on BBC Radio 4 featured the ubiquitous new home buying “victim” selected to tell their ‘tale of woe’ with possible practical solutions to the widespread problems the industry is causing, overlooked or touched on very briefly. The programme gave housebuilder David Wilson Homes the opportunity to issue the usual insincere housebuilder  statement:- “rare isolated incidence – we are truly sorry – working with the homeowner to remedy as soon as possible”

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