Consumer Code for Home Builders responds to two government consultations on home buying and selling reform

The Consumer Code for home Builders (the Code) has responded to the Government’s consultations on home buying and selling reform and material information in property listings. Both consultations apply beyond the new build market, but there are important learnings from the new homes sector that can inform wider proposals to improve the second-hand homes sales and purchase process.

The Code’s responses to both consultations call for greater clarity on the scope of the reforms, including whether and how they apply to the new build marketplace, and how the reforms may apply to those who choose to sell or buy their home privately, particularly if criminal sanctions might be imposed if prescribed information fails to meet new requirements. 

We have also recommended greater involvement from consumers in shaping the reforms, considering the principles set out by the Consumer and Public Interest Network (CPIN) UK to strengthen the voice of the consumer, including access, privacy, redress, safety and inclusivity.

Our observations also included:

• Broad support for the objectives for home buying and selling reform, including faster, more reliable transactions, high professional standards, better informed consumers and greater trust and confidence in the system. Much of this aligns with the purpose of the Code, albeit recognising that the timescale for new build sales processes is partly dictated by the build process.
• Concern in both cases that neither consultation appears to offer an effective enforcement or sanctions regime which is necessary to ensure consumers benefit from the changes and agents and others can identify and fix gaps where they exist. 
• Support for new property information requirements upfront, bringing the second-homes market more in line with new builds where builders are already required to provide detailed information under the Code Scheme (and other new homes Approved Code Schemes). 
• That property information such as searches or surveys should be time limited to maintain relevance and be provided by credible professionals.
• Sales staff, conveyancers and surveyors should all be required to complete training on any new requirements and understand the impact from the consumer’s perspective, much like the Code’s existing free training for agents, builders and conveyancers.
• That any move towards digital logbooks for property buying and selling must consider who owns the data, and how it will be managed, accessed and protected. Crucially, consideration must be given to supporting those who may be digitally excluded.
• Information about event fees, particularly in relation to retirement properties, should be easier for buyers to access and understand, as required in our Code.
• All those involved in the home buying and selling process should understand consumer vulnerability, be able to identify when a buyer may be vulnerable and provide appropriate support.

The proposed reforms in both cases could see some of the most significant changes to the second-homes market and have the potential to strengthen consumer protection, bringing it more in line with the support provided for those buying new homes. However, it is essential that any final recommendations are workable in practice and complement existing protections such as those provided by codes of practice which are already providing vital support for home buyers.