Tag Archives: NHBC

The Consumer Code For Home Builders Is Failing New Homebuyers

PrintClose examination of the 2015 published case studies for Consumer Code for Home Builders Adjudication Scheme (CCHBAS) shows exactly what is wrong with the house building industry. It is now time for a New Homes Ombudsman to independently deal with homebuyers complaints and award justifiable and fair levels of compensation. At present, the maximum new homebuyers can claim using the CCHBAS is £15,000. The maximum compensation for “inconvenience” is just £250 – this being all that was awarded to a quarter (27%) of the successful claimants in 2015.

A total of 47 complaints made by new homebuyers were adjudicated in 2015. Of these, 41 were successful or successful ‘in part’ due to a total of 110 violations over 17 different Code requirements. Only one Code requirement (3.4) was not mentioned in any of the case studies.

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HBF mislead the public with misinformation, spin and ignorance on BBC Radio 4 “You and Yours”

“There are lies damned lies and statistics”…Mark Twain

HBF logo 1A spokesman for the Home Builders Federation (HBF) made some exaggerated, misleading and  untrue statements regarding homebuyers’ satisfaction and protection when interviewed for the BBC Radio 4 “You and Yours” programme on new-build homes aired on 2 March 2016. These merit detailed clarification and rebuttle.

The BBC reporter said that “the house building industry says that only around 1% of complaints are around serious issues, structural faults for example and that generally standards are very high.”  Even if true, it would still indicate that out of the 143,560 new homes built in 2015, “around” 1,435 will have structural faults that cannot be “guaranteed” not to crack, creak, crumble or fall down, requiring major remedial works. Often this means the new homeowner has to move into temporary accommodation as is the case with Evelyn Lallo who has been in ‘temporary’ accommodation since June last year whilst Taylor Wimpey carry out extensive remedial structural work.

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Why a New Homes Ombudsman is now essential

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…..”

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APPG Inquiry Into Quality Of New Homes

APPG Inquiry Second session: – What we suggested.

Houses of ParliamentThe majority of those that made submissions to this APPG inquiry into the “Quality of New Build Housing in England” were from either commercial organisations or institutions with a vested interest in or close affiliation to the house building industry. Their presentations would appear to be focused away from the actual problem – housebuilders’ poor workmanship standards and inadequate levels of customer care – with their emphasis on their own operations and/or sustainability and energy conservation. However, the committee were given presentations by what the APPG Secretariat (CIC) deemed “concerned citizens” four in the second session and one in the last session.

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Attending The APPG Inquiry Into The Quality of New Build Housing in England

The All Party Parliamentary Group for “Excellence in the Built Environment” was formed in July 2010. The group is chaired by Oliver Colvile MP, with Nick Raynsford and the Earl of Lytton acting as vice-chairmen. The latest APPG Inquiry is looking at the Quality of New Build Housing in England and “examining the potential for improving every aspect of the product handed over to new home-owners.” (For details of the full committee see end of this article)

APPG Inquiry at the Houses of Parliament

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Summary Of Proposals To Ensure Better Quality New Homes.

Well it was about time something was done regarding the dire quality of new homes built  in the UK and the total indifference shown by the housebuilders to even begin address the thousands of defective new homes handed over to their misty-eyed customers every year. Something they have all been aware of for many years. This APPG Inquiry is a start.

Whether this latest inquiry by the All Party Parliamentary Group for Excellence in the Built Environment actually forces through the changes so badly required remains to be seen. At the outset, it is only an inquiry and we have had many previously including The Barker Review of Housing Supply in 2004 and the Office of Fair Trading (OFT) ‘Home Building Consumer Survey’ of 2007. Yet as any UK new homebuyer will tell you, the quality of new homes has not improved. In the 2015 results of the HBF New Homes Customer Satisfaction Survey, some 93% of respondents had problems with their new home. Indeed the industry has done such a good job of normalising defective new homes that all of those surveyed actually expected to have some problems after they moved in.

The inquiry will look at the quality of UK new home building and the potential for improving every aspect of the product handed over to new home-owners.

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Bovis fail to win a single NHBC Pride in the Job Quality Award.

Bovis homes’ website proudly (if somewhat unbelievably) claims:

“We build some of the best new homes in the UK.
We pride ourselves on being one of the country’s leading housebuilders and have established an enviable reputation for the quality of our build and design, high specification and excellent customer service.”

cropped-Bovis-Sales-Office.jpg
Well they would say that – but it can it be justified?
The truth was confirmed last Friday when the NHBC announced the 2015 winners of its Pride in the Job competition. “The NHBC Pride in the Job is the only UK-wide competition dedicated to recognising site managers who achieve the highest standards in house-building.”

Bovis site managers failed to win a single NHBC Quality Award!
For the first time in eight years, Bovis became the only large national plc housebuilder not employ a single site manager worthy of an NHBC Quality Award. Out of an average 97 “active sites” in 2014, not one of their site managers stood out above the crowd. NHBC PIJOBNot one was able to demonstrate he cared about the quality of the homes built on his site. Not one possessed the “wide range of site management skills from technical knowledge and consistency in the build process to leadership and organisational skills, and achieving the highest possible standards and best practice in house building” that the NHBC judges were looking for.

Bovis turf

No one cares at Bovis!  They cannot even be botherd to set up a sprinkler to water new turf!

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HBF National New Home Customer Satisfaction Survey 2015

The quality of UK new homes is getting worse

The Home Builders Federation (HBF) National new home customer satisfaction survey results and house builder star ratings for 2014 were released last month with a claim by the HBF that “Homeowner satisfaction with new homes remains high” Compared to what?

The HBF fail to highlight that, even by the methods used for the industry’s own in-house satisfaction survey, the latest results show even fewer new homebuyers would “recommend their builder to a friend” – down 4%. The number of buyers “satisfied” with the quality of their new home is also down 4%. The survey results indicate that the quality of UK new homes and the standard of service offered by housebuilders is getting even worse, not better. The number of new homebuyers who “experience problems” with their new homes is a staggering 93% – up 1% on last year. In other words, buy a new home and you are virtually certain to have problems with it

Defect barratt-lovely-edge-on-skirting-board

In the survey results for 2013, 46% of buyers found more problems with their new home than they had expected. The results for last year would appear to indicate that people buying a new home expected more problems – with 47% stating that the “number of problems were in line with their expectations.” – a 20% increase. The housebuilding industry has succeeded in managing customers expectations so well that the existence of defective workmanship, snags and faults, such as leaking pipes, creaking floors, garden flooding and more in their new homes has become normal, expected and is perceived by both industry and customer as unavoidable. Clearly this is as wrong as it is unacceptable.

As in previous years, the HBF try to promote the myth that levels of customer satisfaction have improved year on year and that UK new homes are better than ever.Taylor Wimpey 9 months small size

It would be better to inspect and prevent defects rather than carry out remedial works after buyers move in. The works above were finally being done by Taylor Wimpey – 9 months after the buyers first moved in!

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HBF Survey Housebuilder Star Rating 2015

Barratt HBF Star rating

Highest Quality Housebuilder? Not exactly!

Before 2011, the star rating of  housebuilder’s was also based on the question: “Taking everything into account, overall how satisfied or dissatisfied are you with the quality of your home?”  over the last three years the star rating awarded to housebuilders is derived from the responses to just one Yes or No survey question:“Would you recommend your builder to a friend?”

Of the bigger housebuilders only Barratt, Redrow, McCarthy and Stone and Miller maintained their 5 star rating from last year.  Taylor Wimpey, Bellway, Bloor, Crest, and Churchill Retirement Living, all lost their five star rating. Persimmon, Bovis and Avant also lost a star and are now the only housebuilders rated just 3 stars in the latest HBF National New Home Customer Satisfaction Survey.  Just how bad are their new homes?

So why are standards getting worse and who is to blame?
Guilty Housebuilder CEOsThese men are all guilty – guilty of building and handing over new homes late, not fully completed, with defects and failing to provide the required level of customer care to ensure that all their buyer’s problems are rectified quickly and effectively. Britain’s least wanted! – Lacking in star quality?  They may have stars in their eyes but now have fewer on their site flags!

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How poor site managers win NHBC Quality Awards

Whilst it should always be preferable to buy a new home on a site when the site manager has won an NHBC Quality Award, many new homebuyers will be amazed to discover that actual quality of the new homes being built has very little to do with the actual winning of NHBC awards for quality!

The NHBC have said “The judging process does not guarantee that every home built on a site will be without issues and our 10 year Buildmark warranty and insurance cover is there to provide protection to the homeowner should problems arise following completion.”
Perhaps this is why NHBC Quality Award-winning site managers are not necessarily the best site managers

TWPITJ1

A quality award-winning site manager but his buyers didn’t get a quality new home!

By using the right “recipe”, even the most dim-witted site manager can (and does!) win an NHBC PITJ Quality Award by following the suggestions below!

Work for the right house builder
Every year, certain housebuilders have far more NHBC award-winning site managers than others. So by working for Barratt or Taylor Wimpey, a site manager is around 10 times more likely to win an award than he would be working for Persimmon/Charles Church for example. Differing cultures, priorities and enthusiasm for the awards may explain this.

OLYMPUS DIGITAL CAMERAGet support from managers
It is essential that the site manager receive positive backing from his contracts manager and regional construction director. Without their input and support, even the best site manager will have no chance, whatever the NHBC may say about PITJ on their website; “achieving the highest possible standards and best practice in house building”

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