22nd April 2024

How can housebuilders regain consumer confidence in new homes?

It’s not been the easiest of times for UK housebuilding. The 2019 Conservative manifesto set a target to build 300,000 new homes by the mid-2020s; however, the UK government has not yet achieved that goal. Meanwhile, consumer confidence in the homes that have been built is weak. In fact, in a survey by the Chartered Institute of Building (CIOB), 60% of respondents said they would not buy a new build, primarily due to fears of poor workmanship. Moreover, 55% said they believed older homes to be better than new build housing, while a third (32%) described new homes as ‘poor quality’.

This distrust is likely due to horror stories causing panic amongst house movers. For example, a man found a major damp issue in his new property built by a major UK housebuilder. Another woman was not able to move into her new home due to a bug infestation. But David Parry, the parliamentary & public affairs officer for CIOB has reassured buyers that new builds have improved in quality over recent years.

So, what can housebuilders do to regain consumer trust.

New Homes Quality Board

The New Homes Quality Board (NHQB) was set up by the government to address new builds that are poor in quality. The independent body has a New Homes Quality Code (NHQC), a framework which lays out best practice from the point of a selling a new home until two years after a property has been purchased. For example, the criteria states that clear information must be provided by the developer during the sales and marketing of properties. If there are any changes to the appearance, size or value of the new homes, the buyer must be notified and they reserve the right to withdraw from the process.  The developer must then provide comprehensive service for two years after legal completion. So, while registering with the NHQB is not yet a legal requirement, it is strongly advised because it provides reassurance to tentative home buyers that their developer will be held to account if the high standards are not met.

Snagging companies

In recent years, there has been an increase in professional snagging companies who identify areas of new homes that must be fixed. These inspections are becoming more commonplace as buyers are now recommended to check for snags before moving in. If the developer is registered with the NHQB, they will be required to resolve any defects within 30 days (unless there is good reason for delay). Housebuilders could pre-empt this by commissioning a survey themselves; after all, if snags are checked during the construction process, it reduces the chance that they will have to return to a property later. It also makes for a satisfied consumer who is far more likely to recommend their developer to another prospective buyer.

Increase awareness amongst homeowners

CIOB’s report found that many consumers remain unaware of the ways in which they are protected if their home is poor quality. The New Homes Ombudsman is free recourse for anyone dissatisfied with their new build; the service, commissioned by the NHQB, mediates between the buyer and the developer to agree a solution. However, only 13% of consumers said they would go to the NHQB in the event of an issue, suggesting that more needs to be done to ensure that homeowners are aware of the support they can access.

80% of housebuilders in England are registered with the NHQB highlighting that, contrary to public opinion, new homes are held to a higher standard than ever. Also, the Future Homes Standard will come into effect next year; under these regulations, new builds should produce 75-80% less carbon emissions, making them more energy efficient than before. When it comes to the development of new build homes, consumers therefore have a lot to look forward to.