Buying a new-build home is a significant milestone and an exciting investment for many. These properties often boast modern designs, energy efficiency and the appeal of being brand new, without the wear and tear that older homes might have. However, purchasing a new-build home is not without its challenges, such as construction delays, snagging issues and disputes over quality. Thankfully, the legal environment offers a range of protections to ensure buyers are treated fairly and their investments are safeguarded.

1. The New Homes Quality Code (NHQC)

The New Homes Quality Code (NHQC) is a comprehensive framework introduced by the New Homes Quality Board (NHQB) in 2022. Its primary goal is to address a long-standing issues in the new-build sector, ensuring a fair and transparent process for buyers. Covering the entire home-buying journey - from initial enquiries to two years after completion - the NHQC sets high standards for developers.

Key Features of the NHQC:

• Transparency in Information: Developers are required to provide buyers with clear and comprehensive details about the property. This includes specifics on tenure (leasehold or freehold), service charges and any additional costs.

• Pre-Completion Inspections: Buyers have the right to commission independent inspections before completing the purchase. This ensures that any defects or issues are identified and addressed before handover.

• Robust Complaints Processes: Developers must implement clear and effective complaints-handling systems, with defined timelines for resolving disputes.

By enhancing accountability and transparency, the NHQC represents a major step forward for the industry, helping buyers feel more confident throughout the home-buying process.

2. The New Homes Ombudsman Service (NHOS)

The New Homes Ombudsman Service (NHOS) works in tandem with the NHQC to ensure developers adhere to their obligations. As an independent body, the NHOS offers buyers a way to escalate complaints that remain unresolved by developers.

Role of the NHOS:

• Dispute Resolution: The NHOS investigates disputes between buyers and developers. For instance, if a buyer is dissatisfied with the quality of workmanship or the developer’s response to complaints, they can turn to the NHOS for impartial mediation.

• Enforcement of Resolutions: The NHOS can enforce resolutions, such as requiring developers to carry out repairs or provide compensation for defects.

• Code Compliance: The service ensures that developers comply with the standards set out in the NHQC.

The NHOS provides peace of mind to buyers, knowing there is an independent authority they can rely on if issues arise.  

3. Consumer Code for Home Builders

The Consumer Code for Home Builders is another key framework designed to protect buyers. While it predates the NHQC, it remains an important resource for buyers who reserved their homes before the NHQC came into effect.

Protections Under the Consumer Code:

• Accurate Marketing: Developers must ensure all marketing materials—such as brochures and online listings—are accurate and not misleading.

• Fair Reservation Agreements: Buyers should receive clear and fair terms when signing reservation agreements, with no hidden penalties.

• Cooling-Off Period: Buyers are entitled to a 14-day cooling-off period, allowing them to reconsider their purchase without incurring significant financial losses.

This code reinforces fairness and transparency, helping buyers navigate the home-buying process with greater confidence.  

4. Consumer Code for New Homes

The Consumer Code for New Homes, approved by the Chartered Trading Standards Institute, complements the NHQC and other protections. It focuses on ensuring high standards in marketing, selling and after-sales service for new-build properties.

Key Principles of the Code:

• Honest Communication: Developers are required to communicate transparently with buyers, ensuring there are no misleading claims or omissions.

• Defined After-Sales Standards: Clear guidelines are in place for developers to address buyer concerns promptly and professionally.

• Prohibition of Misleading Advertising: Developers cannot use advertising practices that misrepresent the property’s features or associated costs.

This code underscores the importance of professionalism and accountability, ensuring buyers receive the service they deserve.

5. Structural Warranties

Most new-build homes in the UK are sold with a 10-year structural warranty provided by organisations such as the National House Building Council (NHBC), Premier Guarantee, or LABC Warranty. These warranties offer vital protection against structural defects that may arise after the home is completed.

Warranty Coverage:

• Years 0–2: During this period, the developer is responsible for rectifying defects caused by poor workmanship or materials. This includes issues such as leaks, faulty fittings or incomplete finishes.

• Years 3–10: The warranty shifts its focus to structural integrity, covering major issues such as subsidence, faulty foundations or significant roof damage.

Structural warranties provide reassurance to buyers, ensuring they are not left to bear the financial burden of major defects.  

6. Legal Protections

Consumer law offers additional safeguards for new-build homebuyers. Developers are legally obliged to deliver homes that meet the standards specified in the purchase contract. If these standards are not met, buyers have several avenues for recourse.

Buyers’ Rights Under the Law:

• Repairs: Developers must address any defects or substandard work promptly.

• Compensation: Buyers can seek financial redress if issues remain unresolved or cause significant inconvenience.

• Contract Termination: In extreme cases, buyers may have the right to cancel the purchase agreement.

These legal protections ensure that developers are held accountable, further safeguarding buyers’ investments.  

7. Recent Developments in Buyer Protections

In recent years, the government and industry regulators have introduced several measures to improve the experience of buying a new-build home. The introduction of the NHQC and the establishment of the NHOS are particularly noteworthy.

Impacts of These Changes:

• Greater Transparency: Developers are now required to provide clearer information about their properties and processes.

• Streamlined Complaints Handling: Buyers benefit from faster and more effective resolution processes, reducing the stress associated with disputes.

• Enhanced Confidence: These changes have improved trust in the new-build market, encouraging more people to consider new-build properties as a viable option.

Tips for Buyers: How to Protect Yourself

While the protections outlined above are robust, there are steps buyers can take to safeguard their interests further:

1. Research Developers: Look for reviews and testimonials from other buyers. A strong track record can indicate a developer’s commitment to quality and customer service.

2. Commission Independent Inspections: Even with warranties and protections in place, a professional inspection can help identify potential issues early.

3. Understand Your Rights: Familiarise yourself with the NHQC, Consumer Code for Home Builders and other relevant protections to ensure you know what to expect.

4. Seek Legal Advice: Consulting a solicitor with experience in new-build purchases can help you navigate complex contracts and identify any red flags.

Conclusion

Buying a new-build home is an exciting journey, but it is crucial to understand the protections available to you. From the New Homes Quality Code and structural warranties to legal safeguards and independent dispute resolution services like the New Homes Ombudsman Service, there are comprehensive measures in place to protect buyers. By staying informed and proactive, you can navigate the process with greater confidence, ensuring your new home is everything you hoped for and more.

FAQs

Q. What is the New Homes Quality Code (NHQC) and how does it protect buyers?

A. The NHQC sets out clear guidelines for developers to ensure transparency, fair processes and accountability during the home-buying journey. It includes provisions for pre-completion inspections, robust complaints processes, and clear information on property details like tenure and service charges.

Q. What role does the New Homes Ombudsman Service (NHOS) play in resolving disputes?

A. The NHOS acts as an independent body to mediate disputes between buyers and developers. It investigates issues such as poor workmanship or unresolved complaints and can enforce resolutions like repairs or compensation.

Q. What are structural warranties and what do they typically cover?

A. Structural warranties, usually lasting 10 years, protect buyers from defects in construction. For the first two years, the developer addresses issues such as leaks or faulty fittings, while years 3–10 focus on major structural defects such as subsidence or roof problems.

Q. How does the Consumer Code for Home Builders benefit buyers?

A. This code ensures developers provide accurate marketing, fair reservation agreements and a 14-day cooling-off period. It promotes fairness and transparency throughout the purchase process.

Q. What legal rights do buyers have if a new-build home does not meet the promised standards?

A. Buyers are entitled to repairs, compensation or, in extreme cases, contract termination if the property does not meet the agreed standards under the law.

Q. How can buyers further protect themselves when purchasing a new-build home?

A. Buyers can safeguard their interests by researching developers, commissioning independent inspections, understanding their rights under various codes and seeking legal advice for contract reviews.