A key Government requirement of the new arrangements is that access to the New Homes Ombudsman Service (NHOS) is free to consumers and therefore costs are covered by developers. The fees for individual builders are being  finalised, and there will be two  elements to :

• Annual registration fee (based on developer turnover for private homes)

Charge for each referral to NHOS

This is yet to be confirmed.  We will provide an update here once this is agreed.

The fees have been set to cover the operating costs of the New Homes Quality Board (NHQB) and the NHOS. Both are not for profit organisations.  We will provide details of the relevant fees once they have been confirmed.

It will be necessary to periodically review the structure for charges/fees.

We are in discussions with the existing code bodies as to how the run-off from their codes will be managed and funded.

Any complaints from customers who reserved their new home before the NHQB activation date for their developer, should pursue their complaint through the previous (pre activation) process and body appropriate to their developer.

This is still to be finalised.  We expect to be able to publish the full charging structure by January 2022.

Yes, the charge for referrals covers the cost of investigations by the NHOS and is chargeable for all referrals.

The Code has now been published and is on the website.

Developers will initially apply for registration on an online portal and pay the annual registration fee.  There will then be a period before final registration is complete for the Developer to complete their readiness activities, e.g., training, updating complaints procedures, branding, etc.  Once this is finalised, NHQB will work with each developer to confirm readiness is complete and ‘activate’ their registration on a mutually agreed date. 

Once a developers’ registration with the NHQB is activated the developer will be required to comply with the NHQC and NHOS for all reservations taken from the activation date. 

The final date is to be confirmed but we expect this to be in Q1 of 2022.

This is correct.  Initially developers will register applications with the NHQB and pay the annual registration fee.  Once their preparations are complete (e.g., training, processes, logos, etc.), they can activate their membership with NHQB. Once activated, customers reserving new homes from that date will be covered by the NHQC and the NHOS.

Yes, all developers of private new homes will have to register with the NHQB.

The NHQC will be reviewed as required but we do not envisage a formal review of it for at least the two years from launch such that industry can embed it within their businesses.

We expect developer registration applications to be available from late January 2022 via an online portal.

Developers can choose whether to activate their whole business or start with one geographical area, regional business or brand.

All developers of private new homes are expected to register with the NHQB.

Ultimately, through the Building Safety Bill, Government will have the power to require companies building and selling new homes to be part of an Ombudsman scheme.

When the NHOS has launched and only when a developer has registered and their readiness preparations have been confirmed, they are then able to agree their activation date with NHQB.

Registered developers will need to pay the required fees, demonstrate that their employees have completed the training, that they have processes in place to deliver against the requirements of the NHQC, and that they have updated all marketing materials with the new logos.

We are talking to HBF/NHBC about the impact of the new arrangements on the branding of the survey and the wording of the questions but ultimately the ambition is that the NHQB will support the survey as the current code body does.

Developers can take as long as required to get compliant with the new requirements but we expect that for most, this will be around 4-6 months.

The period for registering with NHQB starts in January 2022 and ends on 31st December 2022.  

The NHQB will apply to all developers of private for sale new homes.

The developer should use their documented After-Sales Service /customer charter to clearly explain and specify how a customer should approach any issue e.g., snagging, emergency issues, service issue, etc.

Where a customer refers a complaint to the NHOS, they will be asked to confirm whether they have notified their developer and been through the aftersales process. The code makes clear how ‘snagging’ issues should be dealt with and gives the developer 30 days to address them BEFORE a formal complaint can be made about that specific element.

Yes. The requirement is that the customer should be enabled to provide a list to their developer in an agreed and acceptable format. Consideration should of course be given to the customers computer skills and the availability of broadband.

Suggested templates will be provided by the NHQB for inclusion in developers customer communications.

The complaint initiation date (CID) is the first working day after the complaint is received. For example, for complaints received on Monday, the CID is Tuesday and for complaints received on Saturday, the CID is Monday (or in the case of a public holiday, the next working day).

Yes, customers can refer their complaint to the NHOS if their developer has failed to achieve any of the requirements of the Code.

Where a customer refers a complaint to the NHOS, they will be asked to confirm whether they have notified their developer and been through the aftersales process.  In the event that they have not been through the formal complaints process then it is likely the NHOS would refer them back to their developer.

Yes, the requirements of the Code require that developers confirm the final outcome of every complaint with a closure letter. This should provide an opportunity for the developer to set out the details of the case as they see it. It is likely the NHOS will consider this letter as part of their considerations as to whether the case justifies a NHOS investigation so it is in the developers interest to send this letter.

Developers will need to adapt their internal processes to meet the new requirements.

If a customer contacts the Warranty Provider, they should check that the issue has been through the developers process first and refer them back there if not. The first working day after the customer complains to the developer is the start of the complaints process.
If the Warranty Provider’s dispute resolution service is used, it still needs to comply with the 56-day requirement. However, it is likely that the NHOS would want to consider the conclusions of any ongoing investigation by the Warranty Provider, if the reasons for it not being completed within 56 days are valid, before deciding whether to take the case.

The NHOS processes are currently in development and have not yet been finalised.  Once agreed, an update will be published here.

This can be linked to customer vulnerability i.e., where possible/practical the option to personalise a new home to accommodate a wheelchair, a hoist, accessible washing/bathing facilities, etc. should be offered where the property is at a stage where these can be incorporated and costed if necessary. This reflects the principles and spirit of the NHQC by adopting a personal customer-centric approach.

We expect developers to provide all requisite information to a customer. The applicable standards should be advised, and this will likely include the relevant year.  Given the spirit and principles of the NHQC a developer should not use a superseded standard as a reason not to apply a subsequently enhanced standard if is practical to do so and beneficial to the customer.

We would suggest developers avoid spoken agreements as much as is possible and where necessary follow-up anything agreed verbally immediately in writing to create a paper trail (email/text/etc.) which can then be referred to when completing the Contract.

The NHQC states “Minor changes to the New Home that do not alter the size, appearance or value from that shown to a customer in the Reservation Agreement and Contract of Sale, should be notified to a customer”  

There is nothing to stop the developer specifying what they consider a minor change in their Reservation Agreement and therefore the customer is aware, and disputes avoided. 

Yes. The important point is to document that the customer has seen the site plan.  A (non-technical) plan, showing the various plots, house types and basic layout of the site could also be included in the sales literature.

This would depend on the timing of the cancellation and whether the developer had actually spent money on procuring materials for the extras/upgrades.  The Reservation agreement should specify how any pre-exchange of contract payments will be dealt with.

It is recommended that as a minimum, developers follow the guidance from Citizens Advice (www.citizensadvice.org.uk) on the treatment of vulnerable customers.

Yes, the wording; ‘the Contract Deposit; Reservation Fee and any other pre-payments’ clarifies that all payments are to be protected.

The complete new home definition in the Code confirms that the new home is complete “if a warranty cover note has been issued and all rooms, spaces and facilities are in a finished condition for the purpose for which they are designed and intended, and the property provides safe entrance and emergency exit routes; with any further work to the home being either;

1. solely decorative/corrective.
2. related to shared common areas.
3. related to transitioning from temporary to permanent utilities and services, in each case which do not affect the owner’s ability to live safely in the property or will not cause significant disruption or inconvenience to rectify or complete.”

To protect consumer deposits and other monies, builders either need to use cover provided by their warranty provider, use a client/escrow account, or some other legal means within their normal business to ensure such funds are repaid where required.

Yes, The Dispute Service Ltd has been selected as the preferred partner and NHQB is now working with them in an ‘innovative partnership (IP)’ arrangement to develop an ombudsman service and set up the procedures required for dealing with customers of new build homes.

Details will be published in the coming months, but developers will of course be provided with the opportunity to provide all their evidence about a particular case.

No, the NHOS decision is final. This is the same for customers.

Only on an anonymised basis in an agreed format with the NHQB in terms of its reporting.

There will be an online portal and a call centre for NHOS where customers can log the details of their complaint.

The NHOS processes are currently in development and have not yet been finalised.  Once agreed, an update will be published here.

The NHOS processes are currently in development and have not yet been finalised.  Once agreed, an update will be published here.

The NHOS processes are currently in development and have not yet been finalised.  Once agreed, an update will be published here.

The NHOS processes are currently in development and have not yet been finalised.  Once agreed, an update will be published here.

Technically yes, however it seems more likely that customers will exhaust the NHOS process first, before incurring any legal costs.

A bit like the question above, it would make sense to exhaust the NHOS process before escalating as this may confuse/prejudice investigations.

The NHQB will start to publish data on complaints etc at a point in the future which is yet to be determined.  It will initially be on an anonymised ‘industry’ basis and will not identify individual companies.

The NHQC specifies that the pre-completion inspection needs to be carried out by a suitably qualified inspector. It is expected that ‘suitably qualified would include those who are members of a recognised professional body (e.g., RICS, RPSA), or have relevant surveying / construction qualifications. The NHQB will ultimately be working with stakeholders to agree the accreditation requirements for an inspector. In the meantime, developers will be able to determine  what constitutes ‘suitably qualified and work with their customers to agree who carries out the inspection.

Given the current volume of property valuers/surveyors it is not anticipated that there will be a shortage of inspectors. Many developers currently already allow for customers to carry out a pre-completion inspection.

As this is an inspection of the finishing standards of the new home, it is not meant to delay completion as any items identified should be of a minor, aesthetic nature rather than a significant defect

Developers should record that a customer has been given the opportunity for a pre-completion inspection.

A standard template for the pre-completion inspection will be provided on the NHQB website for use by all surveyors/inspectors but developers may also create their own digital or paper version of the standard checklist that works within their systems and procedures

Surveyors or inspectors will set their own fees and agree this with the customer.

When inviting customers to undertake a pre-completion inspection, developers will need to confirm that this can only be done by a suitably qualified professional who can demonstrate membership of a body such as RICS, RPSA, etc

If the developer feels, and can justify that in their opinion, the inspector is not suitably qualified they can refuse them entry and should work with the customer to identity and agree an alternative inspector.

In addition to the ‘home visit’ that most developers already provide pre-occupation, the NHQC will allow for customers to have a pre-completion inspection carried out on their property by an suitably qualified inspector.  A template inspection checklist has been developed by a working group led by the RPSA and RICS that will be made available in the coming weeks on this web site. The template is a checklist that allows for a full ‘finishing’ check to be done on the new home and that basic elements such as lights, taps etc are working.  Allowing a suitably qualified inspector to carry out this agreed template inspection meets the requirements of the NHQC.

At this point, the home is still owned by the Developer so they can decide whether a Site Manager or other role should accompany the inspection.

The NHQC states that the customer has the option to have a pre-completion inspection carried out. If they choose to do so it is at the customer’s expense.

Ultimately this is something the NHQB may consider but it will not be available in the short term.  Guidance will be provided to help the customer and their developer agree on what constitutes a suitably qualified inspector.

Yes – in a similar way to how the existing Codes manage this.

In the first instance, please direct any questions to Emma Toms ([email protected]).

Yes. Detailed training aids are being developed and will be made available to developers once they have completed their application to register. The training includes assessment modules for different job roles including sales staff and those providing after sales services.

The training has been developed to provide guidance for all customer facing employees (e.g., Sales, Site Managers, Customer Care, etc) but is also useful for the wider business to understand how the new requirements impact them.

The NHQC eLearning module will take around one hour in total, however it’s possible for delegates to pause the module and return to the same point at a later date if they are unable to complete it all in one sitting.

The training module will cover the main requirements of the NHQC and should be backed up by providing copies of the NHQC itself.  Developers may choose to do additional training which is tailored more specifically to their individual procedures.

The training module is the same for all employees, but the assessment test will differ according to whether the employee is in a customer-facing role or another (non-customer-facing) department.

NHQB will be providing an eLearning training module which is suitable for all employees and will have different assessments depending on the job role.  Access to the training will be provided to developers on application for registration and must be completed for all customer facing employees before the developer can activate (launch) the scheme.

Yes, it is envisaged that the profile of the NHQB and the NHOS will grow over the coming months – which should be seen as a positive by the industry in terms of consumer confidence – and the NHQB will use this platform to promote the benefits of the new arrangements.

Yes, once the NHQC has been in place for some time, any learnings will be shared with the industry to improve the application and/or efficiency of meeting the Code requirements.