The government has accepted the CMA’s recommendations for a single mandatory consumer code for housebuilders and a New Homes Ombudsman Scheme to strengthen homeowners’ protections.
All developers will be required to adhere to the same framework regarding the quality and customer service they provide to new homebuyers.
The commitments were included in the government’s response to the Competition and Markets Authority’s (CMA) market study into housebuilding in England, Scotland and Wales.
Earlier this year, the CMA made 11 recommendations highlighting ongoing issues in the housebuilding market, including identifying potential barriers to competition and assessing the impact on consumers.
The single mandatory consumer code for housebuilders and a New Homes Ombudsman service will allow new homebuyers to challenge developers on quality and customer service issues.
A ‘much-welcomed proposal’
Last year, 33% of respondents to a Chartered Institute of Building (CIOB) poll on public perceptions of new-build homes said they had a “low level of trust”, and 63% said they were “very or somewhat concerned” about potential issues with new-build housing.
CIOB welcomed the government’s acceptance of the single mandatory consumer code for housebuilders and a New Homes Ombudsman Scheme CMA proposal.
Paul Gandy, senior vice president at CIOB, said: “Buying a home is the most expensive purchase anyone makes in their lifetime, and we have long called for a system which treats all purchasers fairly and ensures their rights are respected.
“The government’s response to the recent CMA’s housebuilding market study, showing intent to introduce a mandatory single consumer code for all UK housebuilders, is a much-welcomed proposal. CIOB is also pleased to see plans to activate the mandatory status of the New Homes Ombudsman take shape.
“We look forward to working closely with the government as it reveals its next steps, particularly in the formation of the single consumer code, and hope policymakers properly engage with the industry to ensure consumers get the fairest treatment possible.”
It is expected that both recommendations will be implemented by the New Homes Quality Board, an independent body that promotes quality standards from new home developers.
