Future changes to the sale of new Homes
The Ministry of Housing, Communities and Local Government (MHCLG) has announced that the government intends to proceed with the introduction of a New Homes Ombudsman (NHO), which will provide buyers of new build homes with both a way of making complaints about problems with those homes and redress through alternative dispute resolution.
Access to the NHO will be free for buyers and it will be independent of the housing construction industry. The NHO will have jurisdiction across the UK, and it will be created through legislation.
Housing developers will have to belong to the NHO, and the MHCLG has announced that the NHO will have a variety of powers, including:
- Awarding compensation to buyers
- Requesting that developers undertake, or refrain from undertaking, work
- Directing developers to improve their service
- Expelling developers from the NHO, and publishing the details and reasons for expulsions
- Making recommendations for resolving disputes and the timescales for rectifying them
- Requesting apologies and explanations from developers.
The MHCLG has also announced that there will be a new code of practice for housing developers, which will set standards that the developers need to meet in their sales, marketing and construction services.
This announcement follows from a consultation held in 2019. Read the summary to the consultation here.
If you are a developer and would like further information, please contact David Redgate or another member of our Commercial Property team.
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