The New Homes Ombudsman Service has called on the Government to make it a “legal requirement” for developers to join the scheme to better protect buyers in the wake of Labour's ambitious plan to build one-and-a-half million new homes.
The New Homes Ombudsman Service was formed nearly two years ago in October 2022, with the responsibility of dealing with complaints by homebuyers about the quality of new-build housing.
However, while the Building Safety Act made provisions to establish the ombudsman with all housing developers required to join, to date, membership remains voluntary.
In the two years since it was established, it has created a New Homes Quality Code for builder members to adhere to, but just 90 of the largest developer groups have joined, accounting for 55% of new homes sold in England, Scotland and Wales.
This is also an increase from 33 at the start of the year, according to its annual report.
An additional 91 are “taking the steps needed” to join, which would bring the coverage to 65-70% of all homes sold.
However, the New Homes Ombudsman Service warned that many small and medium-sized developers, some of whom may only build one or two homes per year, are not covered by the service.
You can check the New Homes Ombudsman Service directory of developers to see if your housebuilder is a member. It’s free to check and to bring your complaint to it.
It urged the Government to make it a “legal requirement” for all housing developers to join the scheme and said pricing structures should be implemented to “prevent undue hardship” for smaller builders.
The New Homes Quality Board (NHQB) does charge a fee for housebuilders to join it. Once they have activated with the NHQB, they are then subject to the New Homes Ombudsman Service and standards.
‘Ensuring all developers join the ombudsman service is essential’
The call comes as the ombudsman revealed research from last year highlighted that 32% of people described new-build housing as “poor-quality”, while 55% said they felt older homes were better quality than new-build properties. Just 21% said they felt new homes were better quality.
Jodi Berg, chair of the New Homes Ombudsman Service, said: “While we’ve made significant strides in our first year, it is crucial that all homeowners receive equal protection against poor-quality new housing.
“As the Government implements its ambitious housebuilding plans, ensuring all developers join the ombudsman service is essential. Without this, too many people will be left without the help they need.”
The Labour Party promised in its manifesto that it would plan to build one-and-a-half million homes over the course of the next Government.
Chancellor Rachel Reeves said that “decisive reform” was needed in planning to unlock housing projects, and a new task force would be created to “accelerate stalled housing sites” across the country.
She added that there would be an additional 3,000 planning officers across the country to support local authorities.
Deputy Prime Minister Angela Rayner confirmed that the Government would give local authorities mandatory housing targets that will support the delivery of 370,000 new homes per year, an increase from the previous goal of 300,000 homes, as part of its target.
This article is based on one that was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Govt should make it a ‘legal requirement’ for builders to join New Homes Ombudsman Service
