New Homes Quality Board consults on code of practice

If developers receive any fee or reward for recommending an advisor, product or service, they would be required to tell the customer the amount, who will receive it and for what activity.

The revised code would also introduce new topics it does not cover, including claims where a home falls in value or becomes difficult to sell because of major public work in the area and claims related to the tenure or occupancy status of other properties.

The consultation will offer house builders, policymakers and buyers the opportunity to give feedback on proposed changes.

Lewis Shand Smith, chair of the independent code council at the NHQB, said: “We started by asking for feedback from stakeholders on the existing code and on areas that are not, but perhaps should be, included.

“That produced a list of issues, which we considered in depth and on which, where necessary, we took advice. From there we decided on proposed changes that are the basis for our consultation.”

The council includes representatives from the HomeOwners Alliance, developers Cube Homes and Miller Homes and the New Homes Ombudsman Service.

“Modern regulation has shifted from tick-box compliance to a much more collaborative system with a strong ethical foundation to ‘treat customers fairly’. That is what the NHQB code is based on and is the core of our review,” Mr Smith added.

The NHQB was set up to ensure developers deliver good-quality homes and give homeowners greater consumer protections. The code undergoes an in-depth review by an independent council every three years.

The New Homes Ombudsman was established in 2022.

Earlier this year, the Housing Ombudsman and New Homes Ombudsman signed a memorandum of understanding setting out how they will work together.

The consultation for the New Homes Quality Code closes at midnight on 4 November.