My new-build home has problems, what are my rights?

As with any property purchase, there are pros and cons to buying a new-build home. 

Here, we explain some of the most common issues with new-builds and offer advice on how to raise a complaint with your developer.

New-build warranties

One of the big attractions of buying a new-build home is the 10-year warranty that comes with the purchase. It works like this:

• Years 0-2: the developer's two-year warranty covers structural issues and minor defects found within the first two years of living in the home.
• Years 3-10: the developer's warranty is replaced by an insurance-backed warranty. This only covers structural issues with the property. It doesn't cover cosmetic issues or minor defects.

You should receive details of both the developer's warranty and the insurance-backed warranty as part of your reservation agreement. This should also contain guidance on what is covered by the policies and how to make a claim.

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Problems with fitting and fixtures

When you move into a new-build home you may not notice if there are problems with the fixtures and fittings straight away. 

But cumulatively it can be very expensive to fix problems with things like tiling, flooring, light switches and built-in cupboards.

If you discover problems in the first two years, you’ll need to contact your builder to get them fixed. It was once the case that checks had to be legally carried out at specific points during the build but these regulations have been relaxed.

If you find that you're fobbed off by a builder when trying to get problems fixed, be persistent. Small problems can add up and be costly, so don't settle for a finish that isn't up to scratch.

Property not ready on time

Builders must give reliable and realistic information about when the home will be finished, the date of legal completion and the date for hand over of the home.

If an unreasonable delay occurs in finishing the home, you have the right not to go ahead with the purchase and get a full refund of your reservation fee.

But be aware that builders will often give estimated timings in contracts - sometimes overly ambitious timings - which can result in two problems. 

The first being that you do move in on time but discover lots of snagging issues (like wonky light switches or incomplete sealant) or the second being that you’re unable to move in on time.

Insulation problems

Low energy bills is another big selling point for buying new-build homes, with many builders claiming that new builds can save you up to 50% on energy bills compared to older properties.

Before moving into your home your developer should have carried out an assessment on the energy efficiency on your home. 

If you discover your house feels cold in winter or that your energy bills are higher than expected, you should contact your builder and ask for a re-assessment.

What to do if you have a dispute with your developer

If you have a problem with your developer and need to escalate a complaint, you'll first need to go through its formal complaints process. 

If the issue isn't resolved, you can check if your developer is signed up to a code of standards. This should be stated on its website. The two main codes are as follows:

Consumer Code for Homebuilders

1. Contact the developer's warranty provider. This should be detailed on your contract. 
2. If the warranty provider doesn't resolve the issue or the issue sits outside of its remit, use the Independent Dispute Resolution Scheme. 
3. The adjudicator will consider evidence from both sides and reach a decision. Under the code, developers can be ordered to award compensation or carry out remedial work. 

New Homes Quality Code

1. Lodge a complaint to the New Homes Ombudsman Service.  
2. The ombudsman will contact the developer and issue a draft decision. 
3. Both parties will be able to submit comments before the final decision is made. 
4. The ombudsman will make a final decision. It has the ability to award compensation or make the developer conduct remedial work.

If your developer is signed up to a different code, this should be stated on its website.