Consumer code for homebuilders scheme to be launched

A new Consumer Code for Home Builders, comprising 19 requirements and principles to ensure the industry deals effectively with its customers throughout the home buying process, is being introduced. These requirements will apply to all new private home buyer reservations from 1 April 2010.

The code is operated and administered via warranty providers the National House-Building Council (NHBC) and Premier, and supported by the Council of Mortgage Lenders, the Home Builders Federation, the Federation of Master Builders, the House Builders Association and the Home Builders Federation Retirement Housing Group.

Under the code, house builders must develop or update a customer charter to provide enhanced customer information. Of particular relevance to the legal profession, requirements include specific information on the provision of delivery dates, rights to terminate contracts, and clarity on reliance upon verbal undertakings.   There may also be a need to make revisions to reservation and contract of sale documents.

The code will help ensure a consistently high level of customer service from pre- to post-occupation, by monitoring customer satisfaction and industry compliance. A dispute resolution service will be available for instances where the homebuyer is in dispute as to whether a builder has complied with the code. The code will be enforced by a change in the rules for NHBC and Premier; gross non-compliance can result in the ultimate sanction – being removed from both warranty bodies’ registers.

Customer satisfaction and industry compliance with the code will be measured and data on performance reported back to the industry, Government and consumer interest bodies.

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