The Consumer Code for Homebuilders is to ‘provide more comprehensive protection for new homebuyers’ following a recent independent review
The Consumer Code for Homebuilders, of which Premier Guarantee is a founding member, was developed to make the home buying process fairer and more transparent for purchasers.
The updated code is due to be launched in early autumn, incorporating recommendations from the review.
The report, led by John Bridgeman CBE, will see the most significant enhancements to the code since it began in 2010 with a focus on customer pre-inspections, snagging resolutions and raising the maximum claim limit for complainants.
Last year, following the inception of the New Homes Quality Code, Premier Guarantee made their terms more flexible so that our customers now have a choice as to which code of practice they wish to follow. Take a look at our thorough guide to both codes.
Originally due in 2020, the review was delayed due to expectations that the Government may introduce a single statutory code of practice. With this now looking unlikely, an alignment of codes has become a priority in order to avoid confusion.
What are the proposed Consumer Code for Homebuilders’ changes?
According to report’s author John Bridgeman, the recommendations have been made in order to ‘deliver enhanced protection, greater levels of financial recompense and a more cohesive approach to customer service and support’.
Those recommendations are:
- An alignment of different codes and simplifying access to complaint advice (This was supported by 95% of respondents to the Code Review stakeholder questionnaire.)
- Raising the maximum financial compensation threshold, including the individual amount, that can be awarded for distress and inconvenience
- New requirements for home builders to improve how snagging issues are dealt with in order to tackle some of the most common causes of complaint from new build homebuyers
- Broadening the scope of the code to include shared ownership and strengthening requirements to support vulnerable customers
- Outlawing financial incentives to complete on properties that haven’t yet met warranty standards and requiring any commissions for recommending products and services to be declared
‘A positive role’
As well as the report’s recommendations for future enhancements to the code, it also recognised its positive role in driving improvements to customer service.
They were:
- the free-to-access and Government-approved Independent Dispute Resolution Scheme
- its full accreditation through the Consumer Codes Approval Scheme
- its sanction regime, including the ability to exclude companies from warranty schemes for failure to comply
- an informative website and contact centre
Speaking about the report’s feedback, Consumer Code for Homebuilders Chair Noel Hunter OBE said: “We’re pleased to see the code’s positive role recognised. However, John Bridgeman has brought into focus the areas we need to strengthen to extend the scope of our code, some of which we have already started to implement.”
Mr Hunter went on say that the code’s management board has accepted most of the report’s recommendations and will shortly be consulting on an update.
“We will also work with policymakers and the wider industry to support the broader recommendations which sit outside our remit,” he concluded.
What do you need to do next?
If you are a Consumer Code for Homebuilders-registered home builder, you will soon have your chance to have your say on the proposed changes through a consultation, after which a final updated Code will be published. All homes built prior to the update will continue to benefit from the existing cover in place (until two years after occupancy).
Updated training and support materials will be provided in due course.
If you wish to switch codes, you should inform your Premier Guarantee account manager with details of when you have registered and activated. This will be the date displayed on the board’s Register of Developers.
Remember, adhering to either the Consumer Code for Homebuilders or NHQB code is a requirement of our warranty service.
