How do home builder codes of practice protect your rights?

By Noel Hunter OBE, Chairman of Consumer Code for Home Builders 

Most new-build homes are covered by a code of practice which is designed to ensure you receive a good service and to protect your rights as a home buyer. The Consumer Code for Home Builders applies to many of the homes covered by the UK’s main home warranty providers: NHBC, Premier Guarantee, LABC Warranty and Checkmate, but ask your builder to confirm which Code scheme they belong to.

Unlike buying a second-hand home, new builds already come with some guarantees. Virtually all new homes have a ten-year warranty which helps to ensure your home is built to a high standard in the first place and protects against structural faults or quality issues that may arise after you have moved in. So why is there a need for a separate code and what help does it give? 

Rights and protections for home buyers

Surprisingly, purchasing a home is not covered by the Consumer Rights Act 2015. While builders must comply with several building and trading standards, the Code fills an important gap in cover for home buyers when it comes to purchasing rights. 

There are lots of aspects of buying a home, starting from the moment you first look at a brochure or visit the site where new homes are being built. Buying a home is one of the biggest and most complex purchases any of us will make – but it’s not something we’re likely to do regularly. That’s why it is important that home buyers receive clear, accurate and timely information and are properly supported throughout the sale process. 

Protection from the point of reservation

The Code focuses on the service you receive from your builder and their sales agent, before, during and after the sale. We set requirements that builders and their agents must meet so that you receive good customer service, feel well informed before making a purchase, and that your home meets the specification you expect when you move in. This protection begins from the moment you show an interest in buying a new build home.

For example, if you pay a reservation fee to reserve a property and subsequently change your mind within 14 days, the Code requires builders to return your fee in full. You can still change your mind after 14 days and expect to receive a refund, minus any reasonable costs your builder has genuinely incurred in processing and holding the reservation, which must be stated upfront. Similarly, the Code requires builders to have suitable deposit protection in place so that if your builder were to go out of business before completing your property, your investment would be covered. If your builder makes a substantial change to the home which you haven’t agreed to, you may have the option to cancel your contract and receive a full refund, even after exchange.

After sales and complaints

Home builders are required to provide a comprehensive after-sales service to support you for up to two years after legal completion.  This includes rectifying defective, faulty or incomplete work.  

Snagging is specifically covered under the requirements of the Fifth Edition of the Code, which applies to all homes reserved from 1st January 2024.  Your home builder should enable you or your professional adviser to inspect your home before completion and resolve defects prior to completion where possible. They must also provide you with written details of who to contact and how to raise any concerns you may have or snags you have identified.

The after sales service also extends to complaints and your builder must have a system and procedures in place for receiving and dealing with complaints and disputes.

These are just a handful of examples of the way the Code protects new build home buyers. For more details, download the latest version of the Code.

Free, independent redress

If you feel your builder or sales agent has breached the requirements of our Code, you can access our free and fully Independent Dispute Resolution Scheme. Independent adjudicators will review your claim and, if successful, may make a financial award – sometimes including a time and trouble payment – as well as requiring builders to take action to rectify the issue. The process is reasonably straightforward and usually completed within eight weeks. 

The first step is to speak to your warranty provider – even if you haven’t got beyond the reservation agreement stage. This is the easiest way to make sure that the site in question is definitely covered by our Code and that your enquiry relates to the Code rather than to issues covered by the home’s warranty. 

If you’re unsure whether the Code applies to your situation, you can also speak to our enquiry team on 0345 608 9797 or enquiries@consumercode.co.uk

Please note: For homes reserved up to and including the 31 December 2023, the Fourth Edition of the Consumer Code Scheme applies. Homes reserved from 1 January 2024 are covered by the Fifth Edition.