Consumer Code for Home Builders: are you compliant?

The Consumer Code for Home Builders (‘The Code’) came into effect on 1 April 2010. It does not apply retrospectively.

The intention of the Code is to give buyers more protection when acquiring a new flat or house, or a newly-converted flat or house, from the time the property is marketed to them to, and including, the after-sales service they receive when they have purchased the property.

Builders and developers that are selling new flats/houses, and are registered with one of the home warranty providers that are participating in the Code, must comply with the Code (participators are currently NHBC, Premier Guarantee and LABC New Home Warranty.) If one of these builders or developers breaches the Code, the home warranty providers can (1) remove them from the relevant register, or (2) exclude them from all registers run by other participating home warranty providers. This could mean that excluded builders or developers would have to obtain home warranty insurance cover from another provider in order to satisfy buyers.

Developers are now required to give an “Anticipated Completion Date” and a period after that date when the buyer can choose to rescind the contract (a maximum of 6 months for a freehold property and 12 months for a leasehold property) in the contract itself, amongst other requirements imposed in the Code. Developers will need to amend their standard contracts to comply and we have been able to assist several of our developer clients with this task. 

If you have any concerns, or would like some assistance, please get in touch with one of the New Homes Team at Matthew Arnold & Baldwin.