January 2024 sees the implementation of the updated Consumer Code for Home Builders’ and Consumer Code for New Homes’ Codes of Practice
The updated standards was initially developed by the Consumer Code for Home Builders and Consumer Code for New Homes in 2021, in preparation for an anticipated single code.
Although this predicted single code did not materialise, the theory behind it has informed the new code.
The new code aims to provide better customer protection during the house purchase process and more after-sales support after purchasing new-builds in particular.
Updates to the standards include:
- the availability of an independent dispute resolution service for home buyers (equivalent to an ombudsman scheme)
- the ability to take action against builders/developers who fail to meet the codes’ requirements
- a new 14 day cooling-off period from date of reservation
- a new pre-inspection requirement to enable home buyers to seek professional help to identify snags and get them resolved before completion
- more detailed requirements and guidance for managing customer complaints
- an increase in the amount home buyers can claim through the Independent Dispute Resolution Scheme
Both new codes are approved under the Chartered Trading Standards Institute’s Consumer Codes Approval Scheme.
Noel Hunter, chair of the Consumer Code for Home Builders said: “These changes bring consistency across the main code schemes and provide additional protection for consumers.
“Compliance with a code scheme is a condition set by most warranty providers, effectively making it mandatory for home builders to meet the required customer service standards and offer an independent dispute resolution service should things go wrong.”
Reducing bureaucracy, but raising standards
Sarah Langley, managing director of the Consumer Code for New Homes, said: “We recognise how important it is for consumers to have clarity as well as a high standard of protection. By collaborating with our colleagues at the Consumer Code for Home Builders, we have collectively raised the standard, not just for our own codes but for the wider industry.
“Importantly, we have done so in a way that builds on existing best practice to avoid creating unnecessary bureaucracy for developers but instead supports them in continually improving the service they provide.”
