CMA Report and the Code: What builders need to know

The Competition and Markets Authority (CMA) Housebuilding Market Study report includes recommendations about service standards and consumer redress in the new homes industry. However, as things currently stand, there are no changes in relation to the expectations of those builders that are required to comply with the Consumer Code for Home Builders.

In summary, in relation to codes of conduct:

• Nothing has changed, so it’s business as usual. Although the CMA has recommended a mandatory single code and ombudsman scheme, this has not yet been accepted by Government as the way forward.

• There is no statutory code or statutory new homes ombudsman. Although there is provision to create these within the Building Safety Act, Government has so far opted not to do so.

• You remain free to choose which code you want to comply with subject to any contractual terms between you and your home warranty provider.

• You still need to comply with the Consumer Code for Home Builders (the Code) if you are a registered with NHBC, LABC Warranty, Premier Guarantee and Checkmate, unless you have registered and activated membership with the New Homes Quality Board (NHQB). If you have activated with the NHQB, you will need to continue to comply with the Code for any properties reserved before your activation date.

• The Code was revised in 2023 and the Fifth edition of the Consumer Code Scheme is now in force. There are resources to help you transition to the updated Code and to provide high quality customer services in the builder resources section on our website.

We are concerned about some of the information the CMA has relied on in reaching its conclusions and we will be continuing to engage with the CMA, Government and shadow ministers to ensure there will be no reduction in the existing protection already available to consumers which many builders have been working hard to deliver.

We continue to provide a robust, independently approved Code for the majority of building companies in the UK to help ensure consumers receive high levels of service and support during and after the purchase of their home.

In the event of dispute between a consumer and a builder, we provide a fully independent alternative dispute resolution scheme operated by the Centre for Effective Dispute Resolution.

Thank you for your ongoing support. Please keep an eye on our news page and LinkedIn channel for further updates or subscribe to our newsletter.