New Homes Quality Board (NHQB) Compliance Explained

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The reputation of newly built homes in the UK is under scrutiny. A recent consumer survey, conducted by the Chartered Institute of Building (CIOB) among 2,000 UK adults, reveals a significant perception problem. More than half (55%) of respondents believe that older homes are of superior quality compared to new builds. Alarmingly, nearly one-third (32%) described newly constructed homes as “poor-quality.” Furthermore, 33% of those surveyed expressed a low level of trust in housebuilders’ ability to deliver homes built to high standards, while 63% reported concerns about potential issues with new build properties.

This growing mistrust has real consequences. Many prospective buyers are being discouraged from considering new build homes as a viable option in the market. The frequent emergence of high-profile stories detailing construction failures in major housing developments only reinforces these negative perceptions.

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Bridging the Trust Gap with the NHQB

To address these concerns and rebuild confidence in new build homes, the government has implemented measures aimed at elevating construction quality and accountability. Central to this effort is the establishment of the New Homes Quality Board (NHQB), which seeks to ensure that housebuilders adhere to consistently high standards of quality and service.

What Is the New Homes Quality Board?

Established in 2021, the New Homes Quality Board (NHQB) is a government-backed initiative designed to hold housebuilders and developers to consistently high standards of quality and customer service. According to the CIOB, approximately 80% of housebuilders are currently registered with the NHQB, with many more in the pipeline. The CIOB has called on the government to review the NHQB in 2023 to consider making registration mandatory for all housebuilders.

By empowering consumers with knowledge about mechanisms that hold builders accountable for construction deficiencies, the NHQB aims to restore confidence in the quality of new builds. This initiative not only benefits individual homeowners but also contributes to raising overall housing standards, thereby mitigating some of the challenges posed by negative perceptions of newly built homes.

From the perspective of housebuilders and developers, being NHQB-compliant is a significant endorsement. It demonstrates a commitment to delivering high-quality homes through rigorous quality assurance processes, ensuring that properties are constructed to the highest specifications.

New Homes Quality Code of Practice: Mandatory Requirements

To register as a housebuilder or developer with the NHQB, adherence to the New Homes Quality Code (The Code) is essential. The Code establishes mandatory requirements designed to protect consumers and ensure high standards in homebuilding. If buyers feel their housebuilder has failed to meet these standards, they can escalate their concerns to the New Homes Ombudsman, who handles complaints related to Code violations.

The fundamental principles of the Code include:

Ethical treatment of customers: Throughout the home-buying process, customers must be treated with fairness and transparency. This includes providing clear, accurate information and enabling customers to make independent decisions, supported by legal advisors and pre-completion inspections.
High standards of construction: Housebuilders and developers must comply with all building regulations and standards, ensuring that homes are completed to high-quality specifications. Legal completion should only occur when all required standards have been met.
Responsive after-sales service: Housebuilders are expected to address customer concerns promptly. This includes robust aftercare services, with a special focus on supporting vulnerable customers.
Financial obligations: Builders must have financial provisions in place to meet all obligations under the Code. This includes timely repayment of deposits or any financial awards made by the New Homes Ombudsman.

Preparing for NHQB Pre-Completion Inspection

When a buyer reserves a property from an NHQB-registered housebuilder, they are protected by the Code from the point of sale through two years post-occupancy. Buyers also have the right to engage a qualified inspector to conduct a Pre-Completion Inspection, which ensures that their new home meets the required quality standards before legal completion.

Key aspects of the New Homes Quality Code:

Pre-completion inspections: New home buyers can hire a professional inspector to assess the home’s condition before legal completion. This inspection ensures the property is “complete” and meets the required standards.
Aftercare and complaints process: Housebuilders must offer an effective aftercare service, which can be outsourced if needed, to address any “snagging” issues. The complaints process must be robust, ensuring customer concerns are resolved in a timely and satisfactory manner. This service is required to cover a two-year period post-purchase.
Protection for vulnerable customers: The Code mandates special attention to vulnerable customers, ensuring their specific needs are identified and addressed during the home-buying process.
Comprehensive information: Housebuilders are required to provide buyers with detailed information about the home’s tenure, future management fees, service charges, aftercare provisions, and new home warranty arrangements. This ensures buyers can make fully informed decisions.

If a customer is dissatisfied with how a snagging issue or defect is handled by the builder, they have the right to escalate their complaint to the New Homes Ombudsman.

Inspection Requirements

The NHQB Pre-Completion Inspection covers both exterior and interior aspects of the home:

Exterior inspections ensure roofs, walls, windows, drains, paths, and driveways are undamaged, correctly constructed, and consistent in finish.
Interior inspections involve a room-by-room check of appliances, services, and fixtures. These inspections confirm that everything is securely fixed, free from damage, and operating as expected. They also assess the quality of joinery, walls, ceilings, and floors to ensure a high standard of finish without defects.

Any post-construction issues identified during these inspections must be addressed before the legal completion. In most cases, builders are expected to resolve these issues within 14 calendar days.

What Does This Mean for Homeowners?

The New Homes Quality Code introduces several protections and benefits for homeowners, ensuring that their interests are safeguarded throughout the home-buying process.

Prohibition of high-pressure sales tactics: Housebuilders are no longer permitted to use aggressive or coercive sales practices. This ensures that buyers have the time and space to make informed decisions without undue pressure.
Protection for vulnerable customers: Special provisions are in place to ensure that vulnerable customers are identified and given the appropriate support throughout the purchase process.
Deposit protection: Any deposit paid by the customer is protected, providing peace of mind and financial security should any issues arise.
Transparency in the sales process: The Code mandates clear communication regarding the sales process, including future management fees and service charges. This ensures that customers are fully informed before committing to a purchase.
Fair contracts and agreements: Sales contracts and reservation agreements must be clearly presented, as per the Code’s requirements. Reservation agreements, in particular, are now fairer and include a cooling-off period to give buyers additional protection.
Right to a pre-completion snagging survey: One of the most significant changes is the right for homeowners to commission a snagging survey before completing the purchase. This eliminates the burden on buyers to personally spot construction issues. Instead, they can hire a qualified inspector to conduct a thorough inspection of the home and report any snags or defects. These must be addressed by the builder or developer in a timely manner, with progress communicated clearly to the buyer and all issues resolved before legal completion.
Homes must be complete before handover: The Code prevents developers from incentivizing buyers to move into incomplete homes, ensuring that new properties meet all required standards before occupancy.

What This Means for Housebuilders and Developers

For housebuilders and developers, the emphasis on quality and compliance is critical not only for customer satisfaction but also for maintaining a strong reputation in the market. Preparing for NHQB Pre-Completion inspections allows builders to “get it right the first time,” identifying and resolving snags during construction, while subcontractors are still on-site.

Addressing potential issues early significantly reduces the volume and cost of aftercare call-backs, resulting in a more efficient build process. More importantly, it enhances the overall customer experience and builds long-term trust in your brand.

This is why implementing a robust snagging and defect management process is essential. By tracking and resolving all relevant issues, housebuilders can uphold compliance with the New Homes Quality Code, ensuring they deliver homes that meet the highest standards. In doing so, the industry can combat the persistent misconceptions and criticisms that have plagued the housebuilding sector in recent years.

How Can LetsBuild Help?

LetsBuild is uniquely positioned to support builders and developers in enhancing the quality of their projects and addressing any concerns related to “pre-completion inspections.” Our platform offers checklists for managing Pre-Handover Inspections (PHIs). These inspections typically take place 2-4 weeks before legal completion and are focused on identifying and rectifying any issues or defects before the property is finalised.

By working closely with site teams, LetsBuild ensures that all necessary corrections are made ahead of legal completion, mitigating the risk of issues being flagged during a professional inspection conducted by the new homeowner under the New Homes Quality Code.

Conclusion

For those purchasing a new build home, the New Homes Quality Code offers much-needed reassurance. While it may not eliminate all concerns, it significantly reduces the risks associated with post-completion issues. Buying a home is an inherently stressful experience, and the last thing a purchaser needs is to discover problems after they’ve taken possession.

The Code is designed to protect vulnerable customers and prevent builders from pressuring buyers into moving into incomplete homes. Under this new framework, homes must be fully completed before new owners take occupancy.

Additionally, developers are now responsible for providing comprehensive information about the home during the sales process, including details about future management fees and service charges. This ensures that buyers can make fully informed decisions before committing to a purchase.

One of the most significant benefits of the Code is the right for buyers to enlist a professional snagging inspector before completion. This step should minimise the back-and-forth disputes with builders over outstanding work. Any issues identified must be resolved by the developer before the sale is finalised, providing peace of mind for new homeowners as they move into their completed homes.

Written by Antoine Alexandre Diaz

Last updated October 22, 2024

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