New Homes Ombudsman calls for mandatory membership for developers

However, the requirement to join has yet to be implemented, which means the service is currently voluntary.

In its first annual report since being formed in October 2022, the watchdog reported that 90 of the largest developer groups in Great Britain had joined the service. The figure accounts for just over half of all new homes sold in England, Scotland and Wales.

It said a further 91 were taking the steps needed to do so, which would bring coverage to 65%-70% of all homes sold.

However, the ombudsman has warned that most small and medium-sized developers were not yet covered by its service.

It said ministers must “use the powers they already have to make it a legal requirement for all new housing developers to join the scheme” as the government kickstarts its housebuilding plans.

“Importantly, pricing structures should be set to prevent undue hardship for small and medium-sized builders,” it said.

Jodi Berg, chair of the New Homes Ombudsman Service, said: “While we’ve made significant strides in our first year, it is crucial that all homeowners receive equal protection against poor-quality new housing.

“As the government implements its ambitious housebuilding plans, ensuring all developers join the ombudsman service is essential. Without this, too many people will be left without the help they need.”

The watchdog also pointed to research last year that found 32% of people described new-build housing as “poor quality”, while 55% said they felt older homes were better quality than new-build properties.

Just over 20% said they felt new homes were better quality.

A Ministry of Housing, Communities and Local Government spokesperson said: “We expect all developers to build safe and decent homes and work with homeowners to fix issues if they do occur. 

“As the deputy prime minister has made clear, we will build 1.5 million homes that are high-quality, well-designed and sustainable. We will respond to the CMA recommendations in due course.”

In February, the Competition and Markets Authority (CMA) recommended that a single mandatory consumer code for all house builders operating in Britain be introduced. 

The recommendation was included the CMA’s final report on the housebuilding market in Britain, which interrogated the “persistent under-delivery of new homes”.

Housing bodies warned the new government last month that it will miss its delivery target without more funding for social homes.