Protecting Your Interests When Buying A New Build

The fixtures and fittings have been carefully picked, the oven is new, the paintwork uncuffed and not a scratch appears on any of the floors…no wonder the UK’s biggest homebuilder Barratt Developments has announced it is planning to build an extra thousand homes this year – demand for new builds has never been greater.

Barratt Development’s chief executive David Thomas told Building.co.uk:

“We have seen strong demand for our high quality, energy efficient homes on well-designed developments […]. As construction activity has increased our employees and sub-contractors have worked hard to maintain our high standards of quality and service.”

Light, airy, and subject to strict environmental and safety standards, a new build home allows you to move in and forget about decorating and repairs, at least in the immediate future. However, case law digests and newspapers are full of many sorry tales concerning disputes between new build owners and the builder and/or developer. To ensure you do not suffer buyer’s remorse (and have to pay thousands of pounds in costs to remedy the situation), you must conduct the same level of due diligence on a new build as you would if you were purchasing an 18^th century cottage.

Below are some tips to ensure your new build purchase and the first few years in your new home are problem free.

Research the development and the developer

In 2019, an independent review into the UK's second biggest housing firm Persimmon, showed the company did not have an agreed minimum standard for all the homes it builds. This was found to lead to an increase in defects and safety concerns. For example, some houses did not have fire-stopping cavity barriers, or they had been incorrectly installed.  The report stated that this was "a systemic nationwide problem", which was "a manifestation of poor culture coupled with the lack of a group build process".

Online reviews can provide insight into the quality of the developer and the sub-contractors they use; however, Google reviews are unregulated so treat them with caution. If you are buying a new build on a development that has already been partially built, ask some of the owners about their experience with the building process.

Last summer, the Housing, Communities and Local Government Committee called for evidence on its draft Building Safety Bill. The Bill provides for a New Homes Ombudsman. 

Housing Minister, Rt Hon Robert Jenrick MP said when announcing the creation of the New Homes Ombudsman in February 2020:

It’s completely unacceptable that so many people struggle to get answers when they find issues with their dream new home.

That’s why the Ombudsman will stop rogue developers getting away with shoddy building work and raise the game of housebuilders across the sector. 

Homebuyers will be able to access help when they need it, so disputes can be resolved faster and people can get the compensation they deserve.

The Building Safety Bill is currently progressing through Parliament and is expected to receive Royal Assent in late 2021.

Conduct a snagging survey

In most cases, developers and builders act with the utmost professionalism and any defects found in a new build home are generally minor and cosmetic. To pick up any flaws, you would be wise to invest in a snagging survey. This is a visual survey that checks the quality of the workmanship against applicable standards. A snagging survey should cover the interior and exterior of the property, plus the garden, driveway, and garage. Although the best time to commission a snagging survey is before you exchange contracts, many developers will refuse to allow one to be done before completion. If this is the case, have the survey completed as soon as possible after you move in.

Make sure your builder is required to comply with the Consumer Code for Home Builders

The Consumer Code for Home Builders is an “industry-led scheme which gives protection and rights to the purchasers of new homes, ensuring that new home buyers are treated fairly and are fully informed about their purchase before and after they sign the contract.” All builders who are registered with the NHBC and other home warranty bodies that back the scheme have agreed to comply with the Code.

The scheme also includes a low-cost disputes resolution mechanism to deal with complaints regarding breaches of the Code.

Check the warranties

Most new-build homes have a 10-year warranty for building problems plus a developer’s warranty – usually for two years – for fixtures and fittings. You need to ensure that before you exchange contracts, you receive the details of the insurance-backed home warranty that is included with the new build. This should contain the details of what the warranty will cover.

In summary

One of the main attractions of a new build property is that you can move in and not have to fill your free time with DIY and redecorating. Most often, new home purchases proceed smoothly. However, like all conveyancing transactions, things can and do go wrong, sometimes drastically. Choosing a Conveyancing Solicitor that is experienced in transactions involving new builds mitigates your risk of discovering any ‘nasty surprises’ after you finish unpacking the boxes and are hoping to relax.

Our team can advise and represent buyers and sellers in all aspects of residential property sales and purchases. For a free consultation please call us on 0208 300 6666.