The NHBC has come into justifiable criticism in the national press recently. The NHBC provides warranties for around 80% of new homes built in any given year. Last year its accounts show it spent £90 million fixing 11,000 defective new homes. What is not listed is the total number of claims the NHBC rejected because the estimated cost of remedial work was judged (by the NHBC) to be less than their ‘minimum claim value’, currently £1,550. So unless buyer’s homes need costly repairs, their warranty claims are often rejected.
The NHBC state on their website:
“Our purpose is to work with the house-building industry to raise the standards of new homes and to provide protection for homebuyers in the form of Buildmark warranty and insurance. We are an independent, non-profit distributing company limited by guarantee – neither part of government, nor a charity. Our business is run by the Board of Directors with surpluses being re-invested in the improvement and development of our products and services.”
The standard of UK new homes is at its lowest since 2009 according to the results of the NHBC’s own Customer Satisfaction Survey! So it might come as surprise to learn that in yesterday’s Guardian, Graham Ruddick reported that the NHBC has been paying around £10m-£15m every year to housebuilders in what he describes “is effectively a profit-share agreement.”
Mike Quinton resigned yesterday, following four years as Chief Executive of the NHBC. He was appointed to the role in October 2012, taking over from his predecessor Imtiaz Farookhi, who stepped down on 28 February 2012 after 14 years in the role.
The NHBC statement said: “From 1st February the current Chairman, Isabel Hudson, (e mail: email@example.com)will become Executive Chairman and Neil Jefferson, Business Development Director, will step up as Managing Director until a permanent successor has been appointed.”
“Since his arrival in 2012, Mike has taken NHBC forward and led the organisation successfully through a period of significant growth in the new build sector, supporting builders to deliver high quality new homes.”
Mr Quinton said in a statement:
“After four years, I’m pleased to leave NHBC in a strong position and well equipped to face the challenges ahead. I leave behind an organisation making a vital contribution to the UK housing sector. NHBC is valued, trusted and relied upon by housebuilders and homeowners and I am sure the organisation will continue to flourish in the years ahead. I wish the management team and all staff the very best for the future.”
With an accountancy background, Mike Quinton joined NHBC in October 2012, “bringing a wealth of experience gained in the insurance sector.” He had previously held several senior executive management positions with major UK insurance companies, including Zurich Financial Services Group, Prudential and RBS Insurance (as MD of insurer Churchill).
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”
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
Since 2006, Part L of the Building Regulations – The Conservation of Fuel and Power in England and Wales – has required mandatory air leakage testing of new buildings including homes. These regulations were further revised in 2010. But this does not mean every new home will be subject to an air leakage test to comply even under the latest 2010 Part L.
What is air leakage testing?
Air leakage testing basically checks that a new home is air tight and will not let in draughts or provide a route for heat to escape through gaps in the structure. After sealing up all required vents to windows and extractors, air is then drawn out of the home via a large fan in an external doorway, with the pressure monitored for a set period of time to produce a measurement of the amount of air that leaks back into the home being tested.
So you would think that since 2010, all new homes would be relatively air tight, free of draughts and cheap to heat as a result?
In his speech at the JCT Parliamentary Reception on 17 May 2016, APPG EBE chair Oliver Colvile MP highlighted the main findings of the Inquiry and some of the main recommendations, in particular that a New Homes Ombudsman “should be set up.” stating “this would mediate disputes between consumers and their builders or warranty providers to offer a quick resolution.”
It is to be hoped that this and all the recommendations in the Inquiry Report, due for publication at the beginning of June 2016, will be taken forward and fully implemented by Government at the earliest possible opportunity.
An Ombudsman is usually appointed by the government or by parliament, but with a significant degree of independence. They are charged with representing the interests of the public investigating and addressing complaints against public bodies, private companies, organisations and sometimes entire industries. An ombudsman should be a totally independent body capable of investigating complaints of malpractice, maladministration or a violation of rights, both fairly and impartially.