Dealing with New-Build Developer Disputes
Since 2005 an annual survey on the satisfaction with new homes has been carried out and in the latest survey 91% of new-build buyers would buy another new-build in the future. However, there are still issues with some new-build homes and if you’re having difficulties with your developer or once you’ve moved in, then there are things you can do to manage disputes.
Protection for New-Build Homes
If you have a home less than ten-years old, even if you didn’t have it from the day it was built, then there is probably a warranty in place. New builders would struggle to sell properties without warranties and mortgage lenders will often insist on warranties too. Most warranties are the standard Buildmark policy which is provided by the NHBC. There are also warranty policies provided from companies such as Checkmate, LABC and BLP which work along the same principles.
In the first two years, warranties will usually cover most defects. This won’t include minor defects or basic wear and tear. In this period, you should go back to your builder if they are still in business, the NHBC if not.
For the next part of your warranty period, up to ten years, the policy will cover major defects. This could include structural or weatherproofing problems. Anything which would cost less than £1500 to fix will not be covered.
Once the ten-year period is over then all problems should be referred to your insurance policy.
Professional Home Snagging
Employing a surveyor to carry out a snagging survey will help to push any issues with your builder along. A professional snagging company knows exactly what they are looking for and will list the defects which need attention, providing you with a copy to send to your builder.
Snagging professionals can liaise with your developers directly where required and help to push along repairs and ensure you are not left with any faults in your home.
the Consumer Code for Home Builders
The Consumer Code for Homebuilders came into effect in April 2010 and was developed to make the homebuying process fairer and more transparent. The code applies to all homebuilders registered with the UK’s new home warranty providers. It includes 19 requirements and principles which builders must comply with in their marketing, sales and in their after-sales care.
Prospective New Homes Ombudsman
The government has announced plans for a New Homes Ombudsman making new protection for homebuyers a matter of law. The Ombudsman will be able to command compensation for poor building works and aim to enforce higher standards in general. All property developers hoping to build new homes for sale will have to register with the scheme by law.
While the ins and outs of the scheme are still being laid out, the government proposes it will include the follow in its code of practice:
Full independence from industry to ensure unbiased action
Ability to resolve disputes on an informal basis where possible
Providing developers with support to improve their service
Ability to request information from developers and require them to undertake or not undertake particular work
Ability to make recommendations to rectify disputes and set timescales for this
Right to request apologies ad explanations from developers
The Ombudsman will have the power to change the way the industry operates for the better and in the most severe of cases will have the ability to expel developers from the scheme, making it impossible for them to continue building new properties legally.
If you’re looking to purchase a new home, there is a lot of protection in place to make the process as smooth as possible. You can find advice and guidance from many sources and if there is a dispute, there is legislative support for you too.
Our team of expert property surveyors have extensive knowledge of your residential property warranty rights. Book a Premier Gold or Premium home snagging survey with Premier Snag and our team will be on hand to advise should any disputes with your property developer arise.