Non-compliance charge to be a permanent sanction under the Code

The non-compliance charge piloted in 2025-26 will remain a permanent part of the Consumer Code for Home Builders’ sanctions regime, following agreement at the Code’s Board Meeting on 29 April 2026. 

Builders who fail to comply with an adjudicator’s decision following a dispute raised via the Code’s Independent Dispute Resolution Scheme (IDRS), may have to pay the non-compliance charge in addition to any award the adjudicator has directed. The charge was created to help ensure decisions are implemented on time, minimising additional distress for home buyers. 

Non-compliant builders are charged £5 per day for every day beyond the original deadline that the adjudicator considers the builder not to have complied. The charge is paid to the home buyer as additional compensation for the delays. Safeguards are built in to avoid scenarios where builders may be prevented from complying due to circumstances beyond their control. It is for adjudicators at the Centre for Effective Dispute Resolution (CEDR), which operates the Code’s IDRS, to decide when the charge should apply.

In the 12 months following the initial pilot, the charge was applied fewer than 10 times, indicating strong compliance with adjudicator decisions. In cases where the charge was applied – in one case for a delay of over 70 days – the charge provided the home buyer with £385 additional recompense. 

John Munton, Managing Director, Centre for Effective Dispute Resolution, said:

“It is positive to see that the non-compliance fee has only been needed in a small number of cases. However, it is a useful additional sanction to encourage swift compliance and better outcomes for consumers and is testament to the Code’s progressive approach to driving up standards.”

Noel Hunter OBE, Code Chair, added:

“Sanctions are an important part of encouraging better customer service and standards overall. It’s very encouraging to see there has been such limited need for this non-compliance charge to date. However, from the outset of our Code, sanctions have played an important role in incentivising compliance and we’re particularly pleased to strengthen that to minimise unnecessary delays in complying with adjudicator’s decisions.”

For full details about the Code’s IDRS, including the scheme rules and application form, visit: https://consumercode.co.uk/resources/the-code-independent-dispute-resolution-scheme/