The Consumer Code for Homebuilders was developed to make the home-buying process fairer and more transparent for buyers of new homes. Designed to help home buyers understand what to expect from their homebuilders, feel informed about this large purchase, and know their rights within the process.
The Consumer Code for Home Builders contains certain requirements that all home builders who register homes with the UK’s main home warranty bodies must comply with, e.g. NHBC, Premier Guarantee, LABC Warranty, and Checkmate. If the Home Builder of a new home is registered with one of the supporting home warranty bodies, they should provide you with a copy of the Code Scheme with your Reservation agreement.
The Consumer Code covers a range of customer service requirements which include:
- Clear and truthful advertising
- Clear and truthful marketing materials
- Effective customer service training
- Sufficient pre-purchase information to help buyers make an informed decision about the purchase
- Contact details for the Home Builder and other relevant bodies
- Home warranty information
- Contract information including termination rights
- Time of construction, including completion and handover
- After-sales service
- Complaints process
What does the Consumer Code cover?
The code covers 3 main stages of the new house buying process. Pre-contract, during the purchase, and after sales.
Pre-contract
When you are looking at buying a new home, potential buyers should be given as enough pre-purchase information as possible, which helps you to make an informed decision. This will include information on the home warranty cover, a written reservation agreement, a list of any organisations that the home buyer will be committed to, and details of any fees. When buying off-plan, there should be more information included such as a brochure that shows the general layout, and appearance of the home, a list of the contents of the home, and the standards of the build.
During the purchase
The home builder must provide a contract that is fair, clear, complies with current legislation, and explains the rights of the homebuyer. There should also be a realistic completion date for when construction is expected to be completed, when the Legal Completion, and the handover date. If any reasonable delays occur, homebuyers have not gone ahead with the purchase of the home. However, details of this will be stated in the contract and other documents and can differ slightly.
After completion
The new home builder will provide an after-sales service, which is accessible. This should include who to contact with questions, and what the guarantees and warranties are. If you move into a property where building work is still being carried out in surrounding areas, you must be briefed on the relevant health and safety precautions you should take.
Who is covered by the code?
The Consumer Code applied to new home buyers. Who either reserve or buy a new or newly converted home which has been built by a Home Builder, under the insurance protection of one of the supporting Home Warranty Bodies:
Contact Us
For more information on buying a new or newly converted home and whether you are covered by the Consumer Code for Homebuilders, please get in touch with our property team. Call us on 01782 662424 or email us at info@beestonshenton.co.uk
