Government confirms mandatory code of practice and ombudsman scheme

The Consumer Code for Home Builders welcomes much-needed clarification from the government about the future direction of new build homes codes of practice and associated redress schemes for consumers. 

Government has accepted the recommendations made in the Competition and Markets Authority’s report into Housebuilding published in February 2024: Summary_of_housebuilding_final_report_.pdf in relation to a single mandatory consumer code and a new homes ombudsman scheme.

However, government has also confirmed they are yet to decide how this will be delivered, by whom and the timescale for implementation. Given that secondary legislation will be required, and on which government will need to consult, it is unlikely that any change will be imminent.

As government sets out its plans, we will continue to work with it, our members and other stakeholders to help ensure the new statutory code draws on the strengths and learning the Consumer Code for Home Builders has gained over the past 14 years and as part of the Chartered Trading Standards Approved Codes Scheme. 

We are particularly keen to see the engagement of builders of all sizes and a code which ensures continuous improvement by having a strong compliance and auditing regime, with effective sanctions being built into the scheme, so that lessons are learned and standards improved as a result.

We will also continue to encourage government to consider minimum standards for warranty schemes so there is consistency for consumers. This, we believe, will help address build quality issues.

The Consumer Code for Home Builders continues to operate as normal, providing support and protection for home buyers as they make one of the most important purchases, and assisting home builders and their agents to get it right first time.

To view the government response, visit: https://www.gov.uk/government/publications/uk-government-response-to-the-competition-and-markets-authoritys-market-study-into-housebuilding