The Government has published its response to the Competition and Market’s Authority’s (CMA) housebuilding study.
This includes bringing forward a new consumer code for housebuilders and a New Homes Ombudsman service which will empower homeowners to challenge developers for quality issues they face in their home.
Earlier this year, the CMA made 11 recommendations highlighting ongoing issues in the housebuilding market.
Alonside a new consumer code for housebuilders and a New Homes Ombudsman service, other recommendations included greater protections for households living under private management arrangements.
This would see homeowners receive more information about what they are paying for as well as allowing them to challenge unfair costs at a tribunal.
Housing and Planning Minister Matthew Pennycook said: “The Government has committed to delivering 1.5 million homes in this Parliament, including the biggest increase in social and affordable housing in a generation.
“The CMA was right to highlight areas for improvement in the housebuilding market.
“That is why we will empower homeowners to challenge developers over poor quality new homes and bad service, and we will consider the best way to address the injustice of ‘fleecehold’ private estates to bring unfair costs to an end.
“Alongside this, our updated National Planning Policy Framework and the reinstatement of mandatory housing targets for councils will ensure communities have the homes and necessary infrastructure to thrive.”
Sarah Cardell, CEO of the CMA, said: “We welcome the Government’s response to our recommendations on housebuilding, which we put forward to get people better protections and open the door to delivering more good quality homes.
“Housing is an essential area for consumers and driving economic growth, so we will assist government as they take forward our solutions, alongside progressing our wider housing work.”
The Government accepted the CMA’s recommendations for a single mandatory consumer code and the establishment of the New Homes Ombudsman Scheme.
Rob Brighouse, chair of the New Homes Quality Board, said: “We welcome the government’s commitment to having a single mandatory consumer code for all housebuilders and activating the New Homes Ombudsman Service for all buyers of new homes.
“This will mean that there is one single framework (the Code) for all developers to improve the standards of quality and customer service provided to all new homebuyers.
“We believe that this decision will help to create a level playing field for all new homebuyers; offering the same route for redress and protections offered through the New Homes Ombudsman.
“We will be engaging with government and all stakeholders over the coming weeks and months to help put this into effect.”
