Chair’s insight: Critical success factors for Codes of Practice

Code Chair, Noel Hunter OBE, shared his insights on what makes codes of practice work effectively in an article for the Chartered Trading Standards Institute which we’ve summarised below.

Codes of practice like ours have a major role to play in improving consumer protection. But delivering meaningful impact requires more than just adhering to a set of requirements. In our experience of operating this Code for 15 years, we’ve learned just how important it is to have the right structure and processes in place that will genuinely drive better outcomes for consumers.

Solid foundations

The Consumer Code for Home Builders was the first code of practice in the marketplace, so there was no blueprint for us to follow. Drawing on our board members’ existing consumer protection and industry expertise, however, we knew there were fundamental elements we would need in place from day one, including:

• An appropriate balance of consumer and industry input
• A set of requirements that would be both robust and achievable
• An independent redress scheme
• Compliance monitoring
• The ability to apply sanctions if the Code of Practice was not adhered to

These core elements have remained at the heart of all our activity, which has helped see consumer satisfaction levels double. Just 46% of home buyers were prepared to recommend their builder pre-Code, which has risen to 94% in 2025[1].

Clear, workable standards

Codes of practice need to consider the most likely causes of detriment to consumers alongside existing protection. We were particularly mindful of the build quality cover already provided through home warranty schemes. That is why new homes codes of practice principally focus on customer service, including providing clear, truthful information and support from the point of reservation until two years after legal occupation.

Industry insight is crucial in developing any new standards, particularly in complex sectors such as home building, where some challenges are genuinely beyond a builder’s control.

Enabling meaningful improvement

From the outset, we wanted our Code to drive better behaviour, which meant supporting our requirements with compliance monitoring, learning and, where needed, sanctions. We do this through a mix of site inspections led by Trading Standards professionals, alongside desktop audits, all of which feed into our Disciplinary and Sanctions Panel. The Panel, which is independently chaired, requires we write to the chief executives of every developer – large or small – following a breach of our Code as determined by an adjudicator under our Independent Dispute Resolution Scheme, to encourage support for improving customer service at the highest level.

Serious breaches can lead to sanctions being applied by the home warranty providers. In addition, we work in close partnership with CTSI and, from time to time, with Trading Standards Authorities across the UK if criminal offences are revealed, such as misappropriate use of our logo, incorrectly implying membership of our Code Scheme.

These initiatives are supported with a suite of free resources for builders, designed to tackle problems at source and help the wider industry learn from mistakes. We also provide helpful resources for consumers to help them become more confident, informed purchasers, knowing what questions to ask and what to expect from their builder.

Maintaining relevance

We commit to regularly reviewing our Code to ensure it remains fit for purpose. Our most recent review led us to introduce more comprehensive pre-completion snagging requirements, as well as an increase in the total amount home buyers could claim through the dispute resolution scheme.

Outside of these formal reviews, we receive consumer and industry insights via our Advisory Forum. It is these independent specialist voices, representing consumers, builders, lawyers, agents, finance providers and others, that help ensure our Code remains effective. Wider stakeholder engagement, and the willingness to regularly take a fresh look at consumer and industry needs, is key to any code of practice wanting to ensure its continued relevance.

It was extremely encouraging to hear the Minister for Employment Rights and Consumer Protection, Kate Dearden MP, publicly back the Approved Code Scheme (ACS)[2]. We are proud members of the ACS, which is operated by the Chartered Trading Standards Institute and offers an extra layer of rigour – and reassurance – for consumers.

The landscape is changing for new homes codes, which could see government introducing a single mandatory New Homes Ombudsman with an accompanying code of practice in the future. The exact details and timescales are unclear. What is certain, is that the Consumer Code for Home Builders team will continue to actively encourage policymakers to ensure any changes build on and improve existing protections and continue to enable positive learning across the home building industry.

[1] Annual Home Builders Federation (HBF) National New Homes Customer Satisfaction Survey

[2] https://www.tradingstandards.uk/news-policy-campaigns/news-room/2025/consumer-minister-backs-ctsi-approved-code-scheme-in-tackling-consumer-detriment/

Read the article in full on the CTSI website