News

When you’re buying a new build home it’s easy to get carried away with the excitement and prospect of moving in, but it’s important not to lose track of the more mundane, but no less important aspects of your purchase. We have set out a number of steps to help you understand what to expect at each stage and to help prevent any unwanted surprises further down the line. 

Step 1 – Which Code?

If your home is covered by one of our supporting warranty providers (NHBC, Premier Guarantee, LABC Warranty or Checkmate), your builder must comply with the service standards set out in our Code, unless they have opted to join a different Code scheme. It’s important to know which code of practice your builder is bound by so you know where to access help if you need it. Your builder or their sales agent should tell you this early in the process, and certainly at the point of reservation. If in doubt, ask.

Step 2 – What information should you receive and when?

As part of the Code, home builders and their agents are required to provide you with enough information to help you make suitably informed decisions about your purchase. This includes a written Reservation Agreement, a brochure or plan illustrating the layout, appearance and plot position (if not completed), details of the standards to which the home is being built, any future build phases that are planned for the development, and whether the property is leasehold or freehold. 

Step 3 – Check for additional costs involved with your purchase

Some new properties involve additional costs or commitments such as service charges, maintenance fees or fixed agreements on services like broadband, which may not be included in the headline purchase price and could impact your budget. Your builder must share these commitments with you before you exchange contracts, including approximate costs.

Step 4 – Understand the terms of your Home Warranty Cover

Most new homes come with a 10-year warranty that includes 2 years’ cover for defects as well as 10 years’ structural cover, but there are several warranty providers and policies will differ.  You can find a general overview of cover on our website, but your builder should provide you with an explanation of the specific Home Warranty cover for your home, including the name and contact details of the provider and a summary of the insurance cover protection. 

Step 5 – Have you seen the details and plans for your new home?

The properties on your development may vary considerably and in some cases brochures and plans will show elements that are indicative rather than actual representations.  Talk to your sales agent about specific elements that may be different for your property and the impact on room size, layout, features or finish as well as external factors such as the location of drains, streetlamps, and communal facilities like bus stops.

Step 6 – Know your rights

Under our updated Code (for properties reserved from Jan 2024), you are entitled to a cooling off period of 14-calendar days after you have signed the Reservation Agreement, in which case you will have your reservation fee refunded in full together with any early bird fees you may have paid.  You can also change your mind at any time during the period of the Reservation Agreement and your fee will be refunded to you less any reasonable costs incurred by the home builder or sales agent. Your Reservation Agreement should state what these costs are, together with details of your refund rights, and should set out exactly how much will be retained if you decide not to proceed.

Your builder or sales agent should let you know if the plans for your home need to be changed and any substantial or significant changes should not be made without your prior approval. 

You have the right to cancel the contract and reclaim your reservation fee and contract deposit if you no longer wish to purchase following a substantial change that you have not agreed to. 

Watch our video which explains your contractual rights when buying a new-build.

Make sure you ask for information about changes in writing, so everyone knows where they stand.

Step 7 – Appoint your legal adviser

If you haven’t already, you will need to appoint a licenced conveyancer to handle the legal aspects of your purchase. Many home builders may recommend a specific solicitor or conveyancer to speed up the process as they will be familiar with the site and associated paperwork. Although this is likely to save you time and money, you are free to choose your own adviser if you prefer.  Whoever you appoint, your legal adviser will be bound by strict rules which includes operating in your best interest.

Step 8 – Understand the terms of your sales contract

Your sales contract is a legal document and once you have signed this, you are legally bound by its terms. The Code requires the contract to be written in plain English clearly stating the terms and conditions of your purchase including the Legal Completion notice period, details of your termination rights and what will happen if the completion date is delayed. Take time to read this through and ask your legal adviser to clarify any points you are unsure of.

Step 9 – Find out about the after-sales and complaints service

The support doesn’t stop once you have completed your purchase. The Code requires your home builder to provide an accessible after-sales service and complaints process, with details of what the service includes and who to contact. The Code also sets out specific timescales that builders must meet in acknowledging and responding to complaints. 

Most people are delighted with their new home but occasionally problems arise. If an issue cannot be resolved, you can raise a claim via the Code’s Independent Dispute Resolution scheme – details of which should be provided by your home builder.

Following the steps above, you should now be armed with the key information you need to understand what’s involved in buying your new home and what help is available.  This is likely to be one of the largest and most complex purchases you will make during your lifetime and it’s crucial that you understand the process, your rights and your obligations.

For more information about The Code and the support available for new home buyers download our Home Buyers Guide or take a look at the videos and blogs on our website.

Related Posts

Who's supporting The Code