Tag Archives: quality

Why new home buyers need a New Homes Ombudsman.

TW Snag Light SwitchThe quality of new homes is getting worse as housebuilders show contempt for their customers by refusing to tackle the issues in their poor quality, defect-ridden new homes.

This government has bent over backwards to help the house building industry, with taxpayer-funded subsidies such as the controversial Help to Buy equity scheme (£791million loaned for 19,394 new homes to 31 March 2014) and the ongoing relaxation of planning rules. So why are Britain’s housebuilders not doing anything to improve the dire quality of the new homes they are building?

The quality of new homes is getting worse as this recent article in the Daily Mail demonstrates; caused by a combination of a lack of skilled tradesmen, insufficient construction time, poor site management and the builder’s CEOs  only caring about profit and numbers (and their bonuses!) – quality doesn’t come first (if it ever did), in fact it doesn’t even come fourth!  To add insult to injury, housebuilders are even routinely refusing to take any action to fix defects that unlucky buyers discover in their new homes once the initial excitement wears off, coming up with “it’s within tolerance” and other excuses in an attempt to justify not fixing defects in their new homes.

Taylor Wimpey 9 months small size

Extensive remedial works still being done in a Taylor Wimpey new home nine months after moving in.

The sad fact is that the quality of new homes and many housebuilder’s reputations are now so bad, an increasing number of new home buyers are employing professional snagging inspectors to independently check for defects in their new homes before they move in. But yet again, housebuilders often refuse point blank to allow access to the new home for buyer’s inspectors until after legal completion, as a matter of “company policy”. This means that any issues identified cannot be fixed prior to occupation and even if the builder does attend to them later, (a big if!) it causes maximum inconvenience for the consumer taking time off work, moving furniture, mess etc.

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HBF 2014 Customer Satisfaction survey results published.

The Home Builders Federation has recently released the results of the National New Home Customer Satisfaction Survey 2014. The first page of the “results” has been used by the HBF as an opportunity for a public relations promotion of new homes.   Crikey, they must be good!   Who would have known?

“High level of Homeowner satisfaction”   “Customer satisfaction levels for new homes have consistently been extremely high”

Barratt NHBF Star ratingQuite a claim considering that the results are from just 32,137 new home owners out of a total of the 109,370 new homes completed during 2013 – that’s just 29.4%!  Only 55% of the surveys sent out were returned – or used to compile the results!

We have the old chestnuts that new homes are “fresh, bright and clean” – another surprise given that new homes are normally dark due to fewer and smaller windows and small cramped rooms.  As for clean, many new homes are handed over in a terrible state after an ineffective builder’s clean.       “Blank canvas”  “better for the environment” – it’s all there,   it’s all good,  what’s not to like?

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Tolerances used by builders to defend poor quality new homes

A Consistent Approach To Failure?
Have you ever heard the phrase “within tolerance”? If you are a new home buyer the chances are it will have been said by a housebuilder’s representative using an industry-agreed degree of tolerance to dismiss your complaint of poor quality and justify an aspect the finish of your new home as acceptable and “within tolerance”.

The NHBC’s publication “A Consistent Approach to Finishes” was originally written for its inspection and a claim staff and was distributed to house builders in Spring 2000. It was also made available to homeowners who were in dispute with their house builder.

A Consistent Approach to Finishes” set out to formally publish guidelines that could be used to settle disputes with disgruntled new home buyers, especially useful and often quoted and used by housebuilders when any remedial action would be messy, very expensive, inconvenient and time consuming to carry out!

These tolerances are now contained in Part 1 General Information of NHBC Standards – Chapter 1.2.

Brickwork wall at PersimmonThe NHBC state that:
“many sources of information relating to tolerances and finishes have been reviewed in the preparation of this Chapter. The tolerances and finishes given here are considered to be appropriate for the house-building industry and take precedence over other recommendations. This Chapter is not intended to deal with every situation that may arise and discretion should be exercised in its application in specific circumstances. The nature and extent of work necessary to remedy minor variations from the tolerance and finishes given should be proportionate and appropriate to the circumstances.”

Here are a few of the tolerances stated in the NHBC’s “A Consistent Approach To Finishes”:-

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Shocking example of standards at Taylor Wimpey

Can new home buyers really believe what the house builders claim on their websites and in their marketing material?  A quote from Taylor Wimpey’s own website claims:

“The standard of home building in the UK has never been higher than it is today”       “We’re dedicated to building quality new homes. It’s the core of our business, which means that we know a thing or two about it.”

Victor MeldrewI don’t believe it!   

Even Victor Meldrew would have trouble with this defect! 

If this really is the case, how could a defect like this happen?
TW Snag Light SwitchEven worse, why was it not seen by anyone and corrected prior to legal completion?

“Every team has a dedicated Site Manager, who is responsible for making sure that your home is built to the highest possible standard.”

So how and why did this happen?
This defect was created at the first-fix stage. The door frame should have been packed off the wall nib using a timber stud to ensure the light switch would fit between the architraves later on. The light switch may even have been fitted in the wrong position altogether, at the very least the electrician should have noticed there could be an issue during his second-fix. The “dedicated site manager” didn’t check this stage of the build presumably!

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What do the house builders really mean?

New home buyers will come across the same phrases and statements used by house builders’ to market their homes and when dealing with distraught new home buyers.   But what are the house builders really telling you?

show home blog

On marketing:

“Attention to detail”
If we can save a few pennies by not doing something and we can get away with it, we will.

“An exciting development”
We hope to make a lot of money on this site

“All of our staff are trained”
We have told them what they can and cannot tell you

“Our friendly site team”
The site manager is always in the sales office chatting and drinking coffee.

“Spacious interiors”
Larger than the usual rabbit-hutch new homes we buildMirrors in show home“Our sales team are fully trained to offer you expert guidance and practical assistance throughout the buying process”
Our sales staff will try to sell you optional extras and force our choice of solicitor and mortgage broker on you.

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How the house builders could improve the quality of new homes

The standard and quality of new homes is not improving. Despite surveys and reviews, time and time again, house builders have demonstrated that they only care about profit and numbers. This was recently confirmed to a Taylor Wimpey new home owner last month, when the company’s regional director, visiting because the new home had over 400 faults including potentially dangerous electrical  work, said: “we’re here to deliver profit for our shareholders”   adding:  “we don’t build perfect houses”

OLYMPUS DIGITAL CAMERA

Remedial works cost builders money!

Indeed, many disappointed new homebuyers believe they should at least be forced to try to improve the quality of the homes they build!  The reality is, it wouldn’t be too difficult to do.  If there was a will, there is a way!  It certainly would be unlikely to reduce the house builders’ profitability because it always costs less to do the work right first time, than it does to go back over and over again.  All a successful business needs is great a product and satisfied customers. The house builders have neither, making their profit predominantly as a result of planning gain, land speculation and on the back of government initiatives such as New Buy and the Help to Buy subsidy!

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Beware of buying a new home rushed for the house builder’s year-end figures

In the days of British Leyland, it was often said that a car with several faults was a “Friday Car” – meaning it had been built on a Friday, with workers not being quite as attentive to quality and what they were doing as perhaps they should have been. Fortunately, the car industry has come a long way since those days with both the quality and reliability of new cars much improved. 

However the same cannot be said of the house building industry. New homes are still being built with as many, if not more faults and defects than they were 20 years ago. The situation is even worse in an “end-of-year figures” new home. These are homes that are sold and the construction process rushed to enable legal completions to take place so as many homes as possible can included in the house builder’s financial year-end report to the City and shareholders. Homes built in the run up to the end-of-year date are always of inferior quality, even worse than the national house builders usually build, with a lower overall standard of finish, incomplete works and forced drying out causing excessive cracking to finishes. 

Rush job!  Will it be completed in time for you to move in 4 weeks?

Rush job! Will it be completed in time for you to move in 4 weeks?

Each regional office will report how many homes they have built and sold, within the company’s financial year. The overall total is then recorded in the firm’s final annual financial accounts. Each region is given a target number of completions to achieve each year and everything (and anything) is done to ensure the required figure is reached. In the past it has been known that buyers were handed large cheques by directors as a “sweetener” to persuade them to legally complete on their new home – even though it was nowhere near finished or even ready for occupation. It was not unheard of for buyers to move in with their electricity and heating powered by a temporary generator or their water supply provided from a hose connected to a standpipe in the footpath! Another ruse sometimes used when a part-exchange is involved, was to let the buyer remain in their old home whilst their new was being finished.  Quite frankly this practice was nothing short of fraud. 

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Advantages and disadvantages of buying a show home

For many, buying the show home may seem a great idea. But anyone considering buying an ex show home should consider the many disadvantages as well as the perceived advantages.

Bovis Sales OfficeThe first thing to be wary of is to not getting taken in by the furnishings and the techniques the housebuilder has used. In recent times, many people have become obsessed with lifestyles and developers are using this to their advantage so potential show home buyers should be sceptical when viewing. 

The most critical issue to buyers is nearly always price. A show home can, and usually does cost, more than the same house type on the development, This is because all the little extras that are in the show home are added to the price. Remember house builders never give bargains! The price will have been very carefully considered to get the maximum amount that can be realistically achieved, in the short time the sales staff may be on the development. You should be prepared to negotiate with the builder, as you will have not been able to choose your kitchen and other options and the home will be used to some extent. 

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Are house builder CEOs fit for purpose?

Is the size, design and more importantly, build quality of new homes getting any better? Judging by the number of complaints they receive and various online comments the answer is a resounding NO! Only this week a Bellway Homes buyer was forced to move out of his house because it was declared structurally unsound after an incorrect (weak) mortar had been used. A Taylor Wimpey buyer could not move into his new home for TWO MONTHS because of the extent of snagging defects included potentially dangerous electrical installation. According to the unfortunate new home buyer, a Taylor Wimpey regional director even told him that “we’re here to deliver profit for our shareholders” adding: “we don’t build perfect houses”.

Whilst planning and building regulations stipulate minimum standards, it would appear that no house builder is prepared to go beyond the absolute minimum quality standards. When a new home buyer complains they are often referred to the NHBC’s booklet “A Consistent Approach To Finishes” and told that it is “within tolerance” The author has written to Persimmon’s Jeff Fairburn, and Taylor Wimpey’s Pete Redfern to ask what measures they are personally going implement improve the quality of their product. Neither has replied!

So with CEOs apparently only driven by profit and share prices, we thought it would be worth a look at examining whether those who are in charge of Britain’s largest plc house builders are in fact, fit for purpose. It can be seen that with one exception, they have not had a University education. In addition, only three have any experience of actually managing a building site, two of these actually started their own companies!

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NHBC say new home buyer’s feedback is increasing

NHBC LogoThe National House Building Council’s (NHBC) Annual Review 2012/13 announced survey results showing of 29,330 new home buyer’s, 91% are ‘very’ or ‘fairly satisfied’ with the quality of their new home and the same number would recommend their house builder to a friend. The NHBC claim “with another year-on-year increase, these levels of customer satisfaction still match or exceed those in almost any other industry or sector and are testament to the industry’s commitment to deliver quality new homes that meet the expectations of their homebuyers.” 

HBF 2013 5 starHowever, the “increase” is just 1% more than the HBF 2013 survey results from a sample size of just 20,313. The HBF survey represents barely a fifth of the total number (109,730) of privately sold new homes built in the survey year, which is hardly representative. 

The NHBC claim to send out over 100,000 questionnaires annually with a response rate was between 50 and 75%. They have now also launched a new online platform enabling participating house builders to easily review their feedback in much more detail than before and they can also compare their customer satisfaction scores with those of their competitors. The platform also gives builders opportunity to add a number of bespoke questions to the surveys, allowing them to change the questionnaire to meet their own specific requirements. 

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