The Consumer Code for Home Builders, a cross-industry platform to further develop best practice and consumer satisfaction, is being launched today.

During the last two years warranty bodies NHBC and Premier Guarantee & LABC New Home Warranty, along with all leading industry trade bodies and the Council of Mortgage Lenders (CML), have worked together to produce the Code.

The Code is an industry-led response to a number of studies including the Barker and Callcutt reviews and the more recent OFT study of the house-building industry. All home builders registered under either NHBC or Premier Guarantee & LABC New Home Warranty will be required to adopt the Code.

"This new Code will underpin and reinforce best practice measures to ensure that the level of information and customer service provided by all builders is consistently high," said Rod MacEachrane, interim Chairman of the Consumer Code Management Board.

"It builds on successful efforts already made by the industry in improving consumer satisfaction in recent years and is an extremely positive step."


The purpose of the Code, which comes into force on 1st April 2010, is to ensure that Home Buyers: are treated fairly; know what service levels to expect; are given reliable information upon which to make their decisions and know how to access speedy, low-cost dispute-resolution arrangements if they are dissatisfied

The Code consists of 19 requirements and principles covering the entire home-buying process, including the requirement for home builders to:

· Develop (or update existing) customer charters or procedures to include information for customers on the provision of delivery dates, rights to terminate contracts, the reimbursement of reservation fees and deposits, the details of the warranties in force, and the external redress scheme

· Amend their Reservation and Contract of Sale documents to maintain transparency with customers, including oral statements

An extensive programme of training is being undertaken by the Code Body, warranty providers and trade bodies to help home builders meet the Code’s requirements.

Jonathan Fair, Chief Executive of Scottish home building industry body Homes for Scotland, welcomed the introduction of the new Consumer Code for Home Builders, said: "Now a mandatory requirement of the new home warranty process which protects owners against problems with their properties for up to ten years, the new Code offers yet another benefit of buying new over older properties.

"By setting out the minimum requirements which builders must meet and establishing an independent system of redress should they fail to do so, buyers have even more reason to take advantage of continuing low interest rates and the variety of packages currently available from home builders to help them onto and up the property ladder."

(GK/BMcC)