Housing Select Committee reports to Minister

The Housing, Communities and Local Government Committee has written to the Minister for Housing and Planning following its inquiry into housing conditions in England. The inquiry considered quality and technical standards in new builds, overheating risks, strengthening redress and accessibility standards for new homes. 

Having witnessed incorrect information being shared at an inquiry hearing, Code Chair, Noel Hunter OBE, has written to the Chair of the Committee to express our concerns in response to incorrect statements about consumer redress, including that ‘35-40% of the market is covered by codes that provide “no more protection than general rights”’. To correct this and other inaccurate statements, the letter confirmed the following: 

• All approved new homes codes provide similar protection and between them cover 98% of new homes in the UK. 
• Our Code is backed by the main UK home warranty bodies (NHBC, Premier Guarantee, LABC Warranty and Lockton Checkmate) and independently approved by the Chartered Trading Standards Institute through their Approved Codes Scheme (https://approvedcode.tradingstandards.uk/).
• Complying with our Code is mandatory for builders operating under our supporting home warranty providers (unless they opt to voluntarily join another scheme.)
• There are approximately 10,000+ builders, many of whom are SMEs, that are required to comply with our Code (or other approved codes of practice within the new homes sector), and there is not therefore a gap in protection as intimated during the inquiry. 
• From the outset, our Code has shared best practice, not just with the industry but with other organisations wishing to develop their own code of practice. We supported the development of a single unified Code, along with the Consumer Code for New Homes, which forms the basis of many other codes.
• For those codes of practice which are supported by a UK home warranty provider, there is no need for a builder to register with another code of practice. While they may not therefore fall under the umbrella of the same redress scheme, all approved codes of conduct provide similar independent ombudsman/alternative dispute resolution (ADR) schemes.

It is disappointing to see inaccurate information continuing to be shared which risks misleading policymakers as they look to enhance consumer protection and quality in the new build market. We are continuing to work with civil servants and MPs to secure:

• Consistent standards of warranty provision
• Clear, accurate information about existing code schemes and protections
• Timescales for proposed changes to code schemes and how they will be implemented

The Committee has concluded its inquiry and has shared its recommendations with the Minister for Housing and Planning. 

For more information about how the Consumer Code for Home Builders protects consumers, download the Consumer Code Scheme.