The New Homes Ombudsman service, which provides a free resolution service for those who have issues with their newly purchased homes, has claimed all housebuilders need to register with the scheme in order to protect homeowners.
Despite a notable increase in developer membership, from 33 at the start of the year to 90 by March 2024, only around 50% of new homeowners benefit from the scheme, with the aim to expand this to 70% as more developers complete their registration.
If developers who are responsible for building houses fail to register, then homeowners could be left without anyone to turn to, “meaning many people will be left without the help they need,” warns the service.
What is the New Homes Ombudsman?
The New Homes Ombudsman is an independent body established to protect consumers buying newly built homes by ensuring developers meet specific quality standards.
The scheme, launched in 2022, provides a dispute resolution service, helping homeowners address issues like construction defects or poor workmanship, and holding developers accountable for resolving these problems.
The Ombudsman enforces the New Homes Quality Code, investigates complaints, and can impose penalties on developers who fail to comply with its decisions.
This service, which is free for homeowners, aims to improve the quality of new homes in the UK and give consumers a stronger voice.
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How many developers are signed up to the scheme?
As of the end of March 2024, 90 developer groups are active members of the New Homes Ombudsman Scheme, an increase from 33 at the beginning of the year.
Additionally, 91 more groups are working to meet the scheme’s requirements and are expected to complete their registration within the current year.
Currently, the developers who are active members produce 55% of all new homes sold across England, Scotland, and Wales.
It is anticipated that once all the developers in the process finalise their registrations, this coverage is expected to increase to approximately 65-70%, according to the New Homes Ombudsman Service.
55% of all new homes sold are made by members of New Homes Ombudsman(Image credit: iStock)
Most small- and medium-sized developers are not signed up
In the New Homes Ombudsman’s Annual report for 2024, it was claimed that despite the growth in new subscribers it is “crucial” that all developers be forced by law to sign up for the scheme, particularly small- and medium-sized developers.
Of the 90 developers covered under the scheme so far the vast majority are larger developers.
Chair of the New Homes Ombudsman Service, Jodi Berg OBE, said: “It is now two years since the launch of our service in 2022 and I am pleased to report a year of steady growth. The numbers of referrals to the Ombudsman have continued to increase, as have the numbers of completed reviews.
“Currently this means that approximately 50% of new homeowners are protected by the scheme. While we’ve made significant strides in our first year, it is crucial that all homeowners receive equal protection against poor-quality new housing.
“As the Government implements its ambitious house building plans, ensuring all developers join the Ombudsman service is essential. Without this, too many people will be left without the help they need.”
