Dispute: Unsightly third-party services

The home buyer’s complaint

The buyer complained that the builder erected an unsightly gas vent pipe in the middle of the buyer’s fence line after they moved in. The builder had not warned the buyer beforehand and informed the buyer that the council had chosen the location. However, this was not borne out when the buyer consulted a local councillor.

The buyer had also not received timely replies to correspondence with the builder and had to involve their solicitor.

The buyer asked for the pipe to be relocated and compensation for inconvenience and loss of value to the property of £12,500.

The builder’s defence

The builder stated it was not liable for the claim. It said that the fact that the pipe would be located at the end of the buyer’s garden would have been explained at the reservation stage and it appeared on a title plan that was provided to the buyer’s solicitor pre-purchase.

Moreover, the builder had told the buyer that moving the pipe was not viable and details of this conclusion were provided to the buyer’s solicitor. No offer of settlement was made.

The adjudicator’s findings

The adjudicator found that the presence of a gas vent column in that location and with that level of prominence would reasonably be expected to affect a purchasing decision and to have been discussed in the reservation meeting.

Further, this item was not shown on any of the photographs of the home to which the buyer was given online access prior to purchase.

The reservation checklist provided did not include any confirmation that the matter was discussed during the sales process, nor did it have the signature of the buyer.

The buyer’s copies of all the pre-sale emails with the sales agent did not refer to the positioning of the gas pipe vent and stated that the buyer was told the columns would be located in corners of the development.

The adjudicator found it more likely than not that the presence of the gas pipe vent was not explained at the reservation meeting and that the builder had failed to fairly investigate the buyer’s complaint and whether the gas vent could be moved to a less obtrusive place.

Although the adjudicator found there were breaches of the Code, no compensation can be awarded for loss of value under the Code Scheme and a direction to move the gas pipe serving a development would be likely to affect third parties. There is no evidence that would be possible and it cannot be awarded.

Learning Points

For buyers:

• Keeping a detailed record of all email correspondence can be vital in the event of a dispute. This includes following up in writing any verbal agreements, as well as keeping copies of any photographs or sales materials.

For builders:

• Be transparent at the outset and ensure buyers are aware of anything that could affect their decision to purchase including location information or features or changes that may affect their property or immediate environment.  Failure to inform a buyer of something which may affect their purchasing decision could also be a breach of consumer protection regulations as well as a breach of the Code.
• Information provided to buyers should be clear, truthful and in plain English, avoiding the use of jargon and agents should take the time to ensure buyers fully understand all aspects of their purchase. This includes pointing out any specific features that a buyer cannot reasonably be expected to interpret particularly where a home is still under construction. 

Adjudication Case 166 – July 2024 – 117211235