Consumer Code For New Homes
 |
The Consumer Code for New Homes has been established to ensure that best practice is followed in respect of the marketing, selling and purchasing of new homes and to set expected standards for after sales customer care service. |
The Consumer Code for New Homes establishes mandatory requirements that apply to all developers registered with the Code. Where a developer (or their agent) is found to be in serious breach of the Code, the Code Sponsor can apply a range of sanctions, including removal from the Code’s register of members. This will also result in removal from the registers maintained by the Warranty Bodies who support the Code. The Code provides an independent dispute resolution scheme for complaints that arise and are made in writing to the developer within two years of the date of the completion of the new home purchase. The Code also benefits second and subsequent buyers of the new home but only in respect of after sales matters reported within two years of the date of the completion of the new home purchase. Nothing contained within this Code affects a buyer’s existing legal rights and does not replace any existing legislation regarding the sale and marketing of new homes to consumers.
What does The Consumer Code For New Homes cover?
The Consumer Code for New Homes covers the new home buying process to ensure that the selling activities the developer engages in are of a consistently high standard. This includes:
- Pre-Purchase Stage: ensuring high standards of customer service, fair and clear documentation, adequate information provision
- Contract Exchange Stage: governing the contract of sale, requiring minimum standards for fair and transparent contracts, accurate information about when the property will be available and protecting deposits
- Handover and After Sales: providing minimum standards for handover and after sales processes, ensuring consumers’ health & safety and ensuring they have suitable information for maintaining and living in your property
- Complaints & Disputes: giving consumers access to clear, speedy and low cost dispute resolution if things don’t go according to plan
Purpose of the Code
The Code ensures that buyers of new homes:
- are treated fairly by the developer (and their agent)
- are confident about the developer’s legal and professional status as a company
- are given clear and reliable information upon which to make decisions about purchasing a new home
- know what standards of construction to expect from the developer
- know what service levels to expect from the developer (and their agent)
- understand what they have to do to maintain their new home and address any problems that may arise
- know how to access speedy, low-cost dispute resolution arrangements if they are dissatisfied.
- in a vulnerable position are identified and given suitable support to help assist them in making decisions.
Management of the Code
The Consumer Code for New Homes is run by the Code sponsor, Consumer Code for New Homes Ltd
The Code signs up developers who work with the Warranty Bodies as Code Members and provides a signpost of quality to our members to enhance the new homes they are constructing and selling.
The Code also provides access to an independent dispute resolution scheme which is run by the Centre for Effective Dispute Resolution (CEDRE).
For more information visit: www.consumercodefornewhomes.com
As a developer do I have to register with the New Homes Quality Board (NHQB) ?
We have been advised that the NHQB Code is not a mandatory code for developers. This is because the NHQB has been setup as an additional code in the sector and as such, other Codes which currently operate will continue to exist.
Protek is a Code User of the Consumer Code for New Homes, which is a Chartered Trading Standards Institute (CTSI) Fully Approved Code in operation since 2015 It has no current plans to change this. Any Developers who engage our warranty services are simply required to be members of CCNH if selling properties on the open market to consumers.
There is no registration fee for the Consumer Code for New Homes, the costs involved are simply:
– £10 + VAT per plot fee on registration
– £600 per case if a consumer wants to take a case to the ADR service (provided by CEDR)
– Annual Code renewals per site are free. No fee for developers with no active sites.
– As a Chartered Trading Standards Institute Approved Code, works with the Centre for Effective Dispute Resolution (CEDR), an internationally recognised alternative dispute resolution service [ADR] providing a comparable ADR service as an Ombudsman to consumers – giving your customers peace of mind.
– CCNH is an industry leading Code providing high levels of consumer protection and business support. CCNH is a sector specialist in supporting small and medium sized developers. We provide Code, complaints and customer service advice and guidance to registered developers free of charge.
