According to its paper, New Build Housing – Setting the standard, consumers have more rights when they buy a kettle than a newly built home.
Many people face delays when moving in and have to pay for rented accommodation; others get poor after-sales service; and as many as 90 per cent of people are left with snagging problems such as faulty wiring, badly fitting doors or leaking windows when they buy a new property. But outdated laws are not geared up to help home owners put things right when things go wrong, says the NCC.
Responding to the Office of Fair Trading (OFT) study into new build housing, the NCC is calling for a radical shake-up in the way that the new build housing market is regulated, to ensure that UK home owners get the protection they need.
Carl Belgrove of the NCC commented: "Buying a house is probably one of the most expensive investments a person will ever make, yet people have more rights when they buy a kettle. Late completion can be a nightmare for many families as they find themselves out-of-pocket paying rent and storing furniture while they wait to move into their new home. Others face a battle to sort out snagging problems.
"With government planning to build three million new homes it’s vital that measures are put in place now to protect home owners of the future."
The report reveals how consumer satisfaction with new homes is on the decline. More than a quarter (29 per cent) of new build property developments are of ‘poor’ quality and one in four buyers would not recommend their house builder to a friend. Recent mergers have led to fewer new build companies and developers, reducing choice and competition.
The NCC is calling for statutory protection, similar to the Sale of Goods Act 1979, to protect buyers when things go wrong.
This should be coupled with the introduction of an OFT-approved code of conduct for builders and developers which would give consumers clear information before contracts are signed. It should also ensure that completion dates are accurate and provide a user-friendly complaints procedure. Finally, a fair contract should be adopted industry-wide which would include a definition of the completion date and a minimum snagging period.
