New home or money-pit?
Over the last three years, we have seen a dramatic increase in claims relating to the construction quality of new-build properties in the UK and, subsequently, the effects these defective homes have on the homeowner emotionally and financially. Such issues can be seen daily and are widely reported in national newspapers.
The issues range from minor cosmetic defects to significant structural failures that pose safety risks. For purchasers, the dream of owning a new home can quickly become a nightmare of endless repairs, financial strain, and emotional distress. The substandard construction practices undermine the property’s value and lead to additional costs of fixing defects. In such situations, Homeowners often face a lengthy and frustrating battle with developers and warranty providers to complete repairs. The psychological impact is profound, with the associated stress and uncertainty affecting the well-being of individuals and families.
More must be done to regulate the build quality of new homes. In the meantime, our top tips for purchasers to place themselves in the best position are:
When buying a new-build property, a purchaser should research the developer by checking reviews on sites like Google Reviews and Trustpilot. They should also ensure the developer is registered with NHQB or follows the Consumer Code for Home Builders and has accreditation from NHBC or other warranty providers. This information is usually available on the developer’s website.
If a developer is registered with the NHQB and/or follows the Consumer Code for Home Builders (5th edition), the purchaser can and should conduct a Pre-completion snagging inspection, which the builder/developer should not refuse. These inspections help buyers identify visible defects before finalising their purchase. The inspection follows a specific checklist but does not include detailed evaluations.
The purchaser should conduct a standard snagging inspection after the property is handed over. These inspections examine a new build’s condition, identifying cosmetic flaws and underlying issues. They can reveal hidden problems like insulation voids, moisture issues, and other defects. Snagging inspections also encourage discussions between buyers and developers about necessary repairs, protecting the purchaser’s investment. A purchaser should provide a copy of the snagging report to the builder/developer and ask for the defects recorded in the report to be rectified.
When buying a new home, there are two consumer code schemes to be aware of: the Consumer Code for Home Builders and the New Homes Quality Code. Both aim to ensure builders treat buyers fairly during sales and for two years after completion. These codes help maintain high standards in construction, sales, and aftercare.
Builders/developers are responsible for fixing any defects in a property for two years after purchase. This period allows buyers to identify any issues that weren’t initially obvious. During this time, builders/developers must promptly address these problems to meet agreed standards and maintain their reputation. A purchaser should report any faults as soon as they find them, relying on the builders to fix them as part of their contractual obligation.
Purchasing a newly built home comes with the reassurance of a 10-year structural warranty. This includes deposit protection against builder insolvency, a two-year defects insurance period for craftsmanship or material faults, and a decade-long structural insurance from the property’s completion date. The National Housebuilding Council (NHBC), Local Authority Building Control Warranty (LABC), and Premier Guarantee are leading warranty providers. A purchaser should ensure that they know which provider covers their property.
Within the initial two years of homeownership, purchasers must communicate any issues regarding the property directly to the builder/developer for rectification. Maintaining a thorough record of all correspondence, including letters, emails, and notes from phone conversations, is always advisable, as these documents may prove essential should a dispute arise (or further action become necessary).
On completion, a purchaser will be provided with information on how to raise a formal complaint with the builder/developer, and this process should be followed in the first instance. The builder/developer must provide a conclusive written statement detailing their stance and any proposed measures. Suppose the builder’s/developer’s final communication indicates a refusal to act on the complaint. In that case, the matter can then be escalated to the relevant Consumer Code scheme or the warranty provider.
If a purchaser cannot resolve a complaint with the builder/developer or through escalation, the final option is to start formal proceedings in court or through arbitration. Most sales contracts for newly built homes include a dispute resolution clause outlining the required steps for resolving disputes. These clauses can make the process complex and costly, often leading purchasers to abandon their complaints or pay for repairs themselves because it is cheaper than continuing litigation.
Purchasers should seek independent legal advice to maximise their position and explore all options before proceeding with formal legal action.
