Enhanced Consumer Protection on New Homes Purchases by Simon Brooks

As from the 1st April 2010, a new consumer code was introduced which enhances consumer protection for those buying new properties from house builders.

Previously, buyers were somewhat at the mercy of developers in regard to the terms of the contract, the reservation fee payable and most importantly, when the new building would be complete and the contract completed. Some of the protective measures in the scheme include entitlement to an agreement which will set out the full terms of the transaction to include an ability to have the reservation fee refundable, reliable information and a realistic estimation of the completion date and in some cases, a fixed completion date as opposed to the rather frustrating ability of the builder to string out the construction and therefore the completion of the property.

Builders are also required to put in place a clear complaints handling procedure and if the buyer is not satisfied with any response to a complaint, the Home Warranty Body will intervene and decide whether the buyer has further cause for complaint to the Independent Dispute Resolution Scheme. In some cases, the builder will be required to remedy the defect and to compensate the buyer up to £15,000.00.

We feel this is a very positive step in what can sometimes be a rather uncertain process of buying a new build property and we are sure buyers can only benefit from this change in legislation.