New-build property rights attacked
The average new home has 100 problems that need fixing

People have more rights when they buy a kettle than they do when they buy a new-build home, according to the National Consumer Council (NCC) in a recently published report.

The findings show that many people buying new homes face delays in moving in, while others are left with problems such as faulty wiring, poorly fitted doors and leaking windows. Typically the average new home has 100 problems that need fixing and many problems don't become apparent until later.

According to the NCC, outdated laws are not geared to helping homeowners get these problems put right and a radical shake-up of the way the new-build housing market is regulated was also needed to ensure homeowners got the protection they need.

Late completion can be a nightmare for many families as they find themselves out of pocket, paying rent and storing furniture, while they wait to move into their new home. Others face a battle to sort out snagging problems, the faults that occur with all new properties.

The NCC's report, which comes in response to the Office of Fair Trading's (OFT) ongoing investigation into house builders, found that consumer satisfaction with new homes was declining. Around 29 per cent of new-build properties were deemed to be of poor quality, and one in four buyers said they would not recommend their builder to a friend.

The NCC said recent mergers between house builders and developers had reduced both choice and competition in the market. The group is calling for statutory protection for homebuyers, similar to that offered under the Sale of Goods Act 1979, which states that goods must be of satisfactory quality, be fit for purpose and correspond with their description.

It said this should be coupled with the introduction of an OFT-approved code of conduct for builders and developers, which would give consumers clear information before they signed a contract.

Builders would also have to ensure completion dates were accurate, and offer people a minimum period in which snagging problems would be fixed. In addition, an independent redress system should be set up to give consumers the option of complaining without having to start expensive legal proceedings.

But the trade body for builders and developers, the Home Builders Federation (HBF), said the NCC's claim that consumers had more protection when buying a kettle than a new home was "simply wrong". They responded that new home buyers enjoy a 10-year warranty, which ensures high standards of quality, remedy for any problems covered by the warranty and formal dispute resolution procedures. This is not the case for people purchasing second-hand homes.

In the latest survey published by the HBF, it showed 76 per cent of purchasers were satisfied with the overall quality of their home.

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Article date: 09.07