The New Homes Quality Board launched in 2022, offering enhanced protections for buyers of new homes. As long as a housebuilder or developer has followed the correct registration process, including completing the necessary training, introducing a complaints procedure, and following other processes and procedures that are needed to meet the requirements of this New Homes Quality Code (the code), they will become a registered developer.
Registered developers agree to follow the code and the New Homes Ombudsman
Service, including accepting the decisions of the New Homes Ombudsman in relation to dealings with customers. If a registered developer does not meet the required standards, or fails to accept and act in line with the decisions of the New Homes Ombudsman, they may be referred to the NHQB Discipline & Sanctions Committee. This committee investigates whether a breach (of the Code or other disciplinary offence) has occurred by a developer and, if so, what corrective action or disciplinary measures are to be applied. These can range from requiring employees to be retrained, fines being levied, or ultimately removal from the Register of Developers.
The code sets out the requirements that registered developers must meet. We may update the code from time to time to reflect changes to industry best practice as well as the decisions of the New Homes Ombudsman Service. We will decide how and when each amended or updated code will come into force. All homes built by registered developers must meet building-safety and other regulations. All registered developers should aim to make sure there are no snags or defects in their properties before the keys are handed over to a customer. If there are any snags or defects, these should be put right within the agreed timescales.
What the code covers
For the purposes of this code, ‘customer’ means a person who is buying or intends to buy a new home which they will live in or give to another person. (If a new home is being bought in joint names, ‘the customer’ includes all the joint customers.) However, we have also started work to consider other groups of customers and what they should be able to
expect from a new home. This includes shared owners and people who are buying a new home to let to other people. Any changes we make to the code to reflect the needs of other groups of customers will be developed through consultation, and we will continually assess and review the effectiveness of the code, and any new laws or regulations that apply. Other areas which are not covered by the code are claims for loss of property value or blight (where a property falls in value or becomes difficult to sell because of major public work in the area), personal injury or claims that are not covered by the scheme rules of the New Homes Ombudsman Service.
The code has two parts.
- Statement of principles a statement of the core principles that registered developers agree to apply to their business and their dealings with customers.
- The practical steps – a statement of what is expected at each stage of the process. We may sometimes provide (and amend or add to) developer guidance to help registered developers meet the requirements of the code. The guidance may include training materials and example documents.
We may sometimes provide (and amend or add to) customer guidance to help customers in matters such as how to make a complaint under the code and what to expect from their registered developer. There is a glossary of terms at the end of this document which explains some of the terms used in the code.
To avoid doubt nothing in this Code supersedes a developer’s legal obligations and the developer guidance and customer guidance do not take priority over or replace the statement of principles or the practical steps, which registered developers must keep.
The transition period
Following their application, developers will have time to confirm they are ready to move
to arrangements under the code, including arrangements for training, branding and
so on. This is called the ‘transition period’. Developers may choose to introduce their
new arrangements at different times for different businesses or subsidiaries (if this applies).
There are some legal differences between the laws within the different nations of the UK. Registered developers should get professional advice to make sure they are keeping to all laws that apply to them.