The shoddy state of new build housing developments has been the subject of many a scathing news article. Not all new build homes are bad quality, but surveys by the HomeOwners Alliance show that the British public have considered new builds to be ‘poorly built’ and ‘too small’ since at least 2015.
Their most recent annual survey of homeowners, published in 2019, confirmed that the majority of Britons consider the poor quality of new housing to be a major issue. With 63% of homeowners in agreement that poor construction is an ever-growing problem, what does this mean for newcomers to the housing market? And what is the UK government doing to tackle these dodgy developments?
Which snags are common in new build homes?
When you identify a problem with your new build upon touring the property before completion, this is known as a snag. Most buyers, or their representatives, will create a ‘snag list’ of things that the seller/developer must fix before the sale can be completed.
These snags can range from minor cosmetic issues to major structural defects. Some of the most common problems are poorly fitted doors and windows, and untidy plastering and painting. Builders rushing to finish projects often results in this lack of attention to detail. Though inconvenient, issues like these are fairly straightforward to fix once you report them.
However, some snags can turn a dream home into a new build nightmare. Substandard foundations can lead to sticking doors, sloping floors, cracking walls, and a sinking structure. Unfinished damp-proofing can lead to leaks, floods, rot, and mould. The damage these mistakes can cause by the time they’re detected can be extremely costly to repair.
Despite new houses becoming ever more expensive, their quality has been consistently dropping. In 2005, the average new build came with around 80 snags – but by 2020, this increased by 96% to an average of 157 snags. Why are developers expecting Britons to pay higher costs for lower quality, and what can we do to confront these ongoing failures?
How are buyers protected against new build defects?
One of the only courses of action that a new build buyer has is to maintain a building warranty. Sometimes known as a structural warranty or latent defects insurance, this type of policy protects the buyer against the costs of repair or replacement work resulting from negligent construction.
These warranties usually come with the building when you buy it, previously set up by the builder or seller. However, building warranties aren’t a legal requirement, so not every developer will arrange one. It’s the buyer’s responsibility to make sure an adequate protective warranty is already in place.
A structural warranty usually lasts for 10 years from the date of completion and is split into two liability periods. The first part is the defects liability period, which lasts for 2 years, during which you can report problems to the builder for them to address. The second part is the structural liability period, which lasts for the remaining 8 years, during which the warranty provider only covers major structural issues. Some people don’t realise that not all defects are covered for the whole term.
While a 2008 study by the Office of Fair Trading found that warranties in the UK are ‘relatively robust’, a 2016 report by the All Party Parliamentary Group (APPG) found that consumers often misunderstand what a building warranty actually covers. Many people also mistake having a warranty as a guarantee of quality, when the warranty provider’s surveyors may be as insufficient as the builders in identifying defects.
This is why it’s so important to choose a reputable building warranty provider that you can rely on, who can inspect the build at key stages from start to finish and fight your corner when it comes to fixing snags. As with any legal contract, you should always read the structural warranty thoroughly before signing, and make a note of important dates so you know when certain conditions expire.
What is the UK government doing about defective new build homes?
It might soothe some consciences to know that the government is slowly responding to widespread concerns about the quality of new build housing in the UK. Consultations and responses have been underway since 2018, with the Building Safety Bill 2021-22 now making its way through Parliament.
Introduced in July 2021, this Bill is designed to give homeowners and residents more rights and protections. The government intends to reform building safety regulations and improve compliance with the new standards by giving regulatory bodies new powers for investigations and sanctions.
The Bill also covers the intention to set up a New Homes Ombudsman Service (NHOS), giving buyers a dedicated dispute resolution platform. Until this is established, the interim New Homes Quality Board (NHQB) is overseeing a New Homes Quality Code that all registered developers must follow.
When the New Homes Ombudsman scheme is officially launched, all UK homebuilders are expected to sign up for membership. If they fail to comply with the Quality Code, and are rejected from joining the scheme or their membership is revoked, they will not be able to legally continue building homes.
The government agrees that the balance of power has been tipped too far in housebuilders’ favour for too long, and these upcoming measures should address this problem by putting more powers of redress into homebuyers’ hands. If the new frameworks are successful, homes should be safer, and penalties should be tougher for developers who have been letting buyers down for the last decade.