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The Consumer Code for New Homes

What is the Code?

If you are planning to buy a new-build home, the Consumer Code for New Homes is here to support you.

Buying a new-build home is an exciting time. But as it is one of the largest investments you’re likely to make, it’s important that you understand the process, what you’re buying and what help is available if problems arise.

The Consumer Code for New Homes, approved by the Chartered Trading Standards Institute, has been established to ensure that best practice is followed by registered Developers in respect of the marketing & selling of New Homes to consumers. The Code also sets expected standards for after sales customer care service.

It has been established to be of maximum benefit to consumers and its ultimate aim is to provide a genuine commitment to consumers, to improving standards of construction and raise customer service standards in the New Homes market, recognising that part of that commitment is providing consumers with a voice and a clear complaints process when things simply don’t go according to plan when they buy a New Home.

The Consumer Code for New Homes

The Consumer Code

The Code ensures that Buyers of New Homes:

  • to be treated fairly by the Developer (and their Agent).
  • to understand the Developer’s legal status and identity as a company, so the Buyer understands who they have bought their New Home from.
  • to be given clear and reliable information on which to make informed decisions about purchasing a New Home.
  • to know what standards the Developer must deliver for the New Home.
  • to know what service levels to expect from the Developer (and their Agent).
  • to receive clear advice about the main aspects of the New Home that the Buyer will need to maintain.
  • to know how to access timely arrangements for resolving Disputes if they are dissatisfied.
  • who may be Vulnerable to be identified and given suitable support to help them make decisions.

What does the Code Cover?

The Consumer Code for New Homes sets higher levels of consumer protection above and beyond the law. The Code 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-Contract: ensuring high standards of customer service, fair and clear documentation, clear and truthful advertising, training of staff and agents, adequate information provision, clear and fair arrangements for reservations.
  • Contract Exchange: governing the Contract of Sale, requiring minimum standards for fair and transparent contracts, termination rights, accurate information about timings, and protecting deposits and prepayments.
  • Legal Completion: setting minimum requirements for completion and quality of the New Home, and information provision.
  • After Occupation Starts: providing minimum standards for handover and after sales processes, ensuring consumers’ health & safety, and ensuring they have suitable information for maintaining and living in the New Home.
  • Complaints & Disputes: giving consumers access to clear, speedy and free dispute resolution if things don’t go according to plan and co-operating with professional advisers.

Resolving Complaints and Disputes

Taking consumer complaints seriously is very important to the Consumer Code for New Homes and because of this, the Code sets out a clear complaints process which is supported by an Independent Dispute Resolution Scheme, if complaints and issues with Developers turn into disputes.

The Code covers consumer complaints which are made in writing to our Developer Members within two years of the date of the Legal Completion of your New Home purchase; and it also benefits second (and subsequent) Buyers of the New Home in respect of after sales matters.

If you need to make a complaint, you should raise this with your Developer in the first instance, since they will be able to deal with your complaint quickly and effectively under their own Complaints Handling Procedure. However, if you have complained to your Developer and are not satisfied with the outcome, you may want to bring a Dispute to the Code’s Independent Dispute Resolution Scheme.

Independent Dispute Resolution Scheme

The Code is underpinned by an Independent Dispute Resolution Scheme operated through CEDR Limited.

CEDR is approved by the Chartered Trading Standards Institute as the ‘competent authority’ acting on behalf of the Secretary of State for dealing with Disputes that are raised with the Developer from the Reservation date until two years after the date of Legal Completion. Buyers who think they have a Dispute because a Developer has failed to meet the Requirements may choose to refer it, free-of-charge, to the Consumer Code for New Homes Independent Dispute Resolution Scheme.

The scheme is independent of the Developer and the Structural Warranty Bodies, and any matter referred to this scheme concerns Disputes under the Consumer Code for New Homes only. The adjudication will be independent and conducted by a trained Adjudicator.

Find out more about the IDRS by clicking here.

How is the Code enforced?

If a Developer (or their Agent) is found to be in serious breach of the Code, the Code can apply a range of sanctions, these include:

  • removal of the Company from the Consumer Code for New Homes’ register and all Company Directors banned, and
  • removal from the relevant Structural Warranty Bodies’ register, and
  • exclusion from all registers run by other Structural Warranty Bodies that take part in the Code Scheme.

If a Developer is removed from the Code, the Code Sponsor will also notify other Chartered Trading Standards Institute Approved Codes in the New Homes sector, of Companies and Directors removed from Consumer Code for New Homes register and the reasons why.

You can find out more about the Code at www.consumercodefornewhomes.com or visit our Downloads page.