Homeowners could get up to £50,000 compensation for shoddy building work under new ombudsman
NEW rules mean that homeowners could be awarded up to £50,000 in compensation from developers for shoddy building work.
The government has announced that it will be creating a New Homes Ombudsman to protect people buying new build properties.
The ombudsman will step in to protect buyers from issues such as sloppy brickwork or faulty wiring.
It will have the power to award compensation, ban rogue developers and order them to fix faults.
The new ombudsman will be able to help buyers like Louise and Philip Upton who found 108 faults with their £280,000 Bellway home after moving in.
Or dad-of-three Mike Firth who's "shoddy" Persimmon home still isn't fixed 16 months on from getting the keys.
The watchdog will hold developers to account and require them to put matters right with new powers including:
- Adjudicating on complaints and upholding standards set out in a Code of Practice,
- Awarding up to £50,000 in compensation to home buyers,
- Forcing developers to undertake or refrain from undertaking work,
- Telling developers to improve their service,
- Publishing details and reasons for expulsion of developers,
- Making recommendations on timescales to resolve disputes,
- Making developers apologise and explain.
The government has also said that it will introduce new laws that require all developers to belong to the new ombudsman.
But it is not yet known how long the process will take or when the new rules will come into force.
When it does arrive, the ombudsman will be free for consumers to use, and independent from the property and building industries.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa - It's a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.
Help to Buy equity loan - The Government will lend you up to 20 per cent of the home's value - or 40 per cent in London - after you've put down a five per cent deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa - This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25 per cent on top.
Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property but you're restricted to specific ones.
"First dibs" in London - London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
Starter Home Initiative - A Government scheme that will see 200,000 new-build homes in England sold to first-time buyers with a 20 per cent discount by 2020. To receive updates on the progress of these homes you can register your interest on the website.
The new rules will only apply to new build homes as there are already ombudsmen for other parts of the market, such as the Property Ombudsman.
The New Homes Ombudsman’s remit will include complaints involving fuel, energy and broadband performance where standards fall below those legally required or promised by developers.
Homebuyers will be able complain to the ombudsman up to two years after the first purchaser's completion date.
Housing Secretary Robert Jenrick said: "It’s completely unacceptable that so many people struggle to get answers when they find issues with their dream new home.
"That’s why the ombudsman will stop rogue developers getting away with shoddy building work and raise the game of housebuilders across the sector.
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"Homebuyers will be able to access help when they need it, so disputes can be resolved faster and people can get the compensation they deserve."
We've previously reported how some residents of new build homes have been plagued by problems after their houses remained unfinished more than a year after they moved in.
Guy Kirk, 35, and his partner Lucy Sousa, 33, ended up putting a sign in their window warding off potential buyers, after developers Persimmon promised to complete snagging work by last October - but 90 different faults remained.