New Build Consumer Code: Your Rights as a Buyer

Introduction: The New Homes Quality Board Consumer Code

When purchasing a new build home in England, Wales, or Scotland, you are protected by a framework of consumer rights that goes beyond general consumer law. At the heart of this framework is the New Homes Quality Code, administered by the New Homes Quality Board (NHQB), which replaced the previous Consumer Code for Home Builders (CCHB) from 2022. This code sets mandatory standards for how developers must treat buyers throughout the entire purchase process – from initial marketing through to after-sales service and dispute resolution.

Understanding your rights under the Consumer Code is essential because it gives you specific protections that you can enforce if things go wrong. While most developers aim to deliver a positive buying experience, the reality of purchasing a new build home can involve delays, snagging issues, disputed specifications, and communication breakdowns. The Consumer Code ensures that there is a clear framework of standards and a formal complaints process you can turn to.

This guide explains what the Consumer Code requires from developers, what protections you have as a buyer at each stage of the purchase, and how to use the code’s complaint and dispute resolution procedures if your developer falls short. Whether you are a first-time buyer or have purchased new builds before, knowing your rights under this code puts you in a stronger position throughout your buying journey.

Please note: This article provides general guidance on the New Homes Quality Code in England, Wales, and Scotland. It is not a substitute for professional legal advice. For specific legal concerns about your purchase, always consult a qualified solicitor. Northern Ireland has its own consumer protection framework – buyers should check with their solicitor for applicable codes.

From the CCHB to the New Homes Quality Board

To understand the current Consumer Code, it helps to know its history. For many years, the home-building industry in England and Wales was self-regulated through the Consumer Code for Home Builders (CCHB), which was supported by the major warranty providers – the NHBC, LABC Warranty, and Premier Guarantee. While the CCHB provided some consumer protections, it was widely criticised for lacking teeth and for being too closely aligned with the interests of the industry it was supposed to regulate.

Following numerous reports of poor-quality new builds and buyer dissatisfaction, the Government commissioned an independent review of the home-building sector. This led to the establishment of the New Homes Quality Board (NHQB) in 2021, an independent body tasked with raising standards across the industry. The NHQB introduced the New Homes Quality Code, which came into effect in stages from January 2022, and is now the primary consumer code governing new build home purchases.

Key Differences from the Previous Code

The NHQB Code represents a significant step up from the CCHB in several important ways:

• Independence – The NHQB is structurally independent from the home-building industry, with an independent chair and board members who represent consumer interests
• Stronger enforcement – Developers who fail to comply with the code face sanctions including fines, public censure, and ultimately removal from the register (which would prevent them from selling homes with warranty cover from major providers)
• Clearer requirements – The code sets out specific, measurable standards rather than vague aspirations, making it easier for buyers to understand what they are entitled to
• Independent dispute resolution – The NHQB operates its own New Homes Ombudsman Service, providing genuinely independent adjudication of disputes between buyers and developers
• Mandatory registration – All developers selling new build homes with warranty cover from major providers must be registered with the NHQB and comply with the code

Pre-Purchase Information Requirements

One of the most important aspects of the Consumer Code is the requirement for developers to provide comprehensive, accurate information before you commit to a purchase. This is designed to ensure that you can make a fully informed decision and are not pressured into buying without understanding what you are getting. The code addresses this at several stages of the buying process.

Marketing and Advertising Standards

The code requires that all marketing materials, show homes, and sales literature must be accurate, clear, and not misleading. Specifically:

• Show homes must clearly indicate which items are included in the purchase price and which are optional extras or upgrades
• Floor plans and site plans must be reasonably accurate, with a disclaimer noting that dimensions are approximate
• CGIs (computer-generated images) must be fair representations of the finished product
• Sales staff must be trained and knowledgeable about the code and the buyer’s rights
• Any financial incentives (such as help-to-buy contributions, deposit contributions, or part-exchange offers) must be clearly explained, including any conditions or limitations

Pre-Contract Disclosure

Before you sign a reservation agreement, the developer must provide or make available:

1. A clear description of the home – including the plot number, type, and specification
2. The purchase price – and any additional costs the buyer will need to pay (such as upgrades, management company fees, or connection charges)
3. Tenure information – whether the property is freehold or leasehold, and if leasehold, key terms such as lease length, ground rent, and service charges
4. Warranty details – which warranty scheme covers the home and what it includes
5. Expected completion timeline – a realistic estimate of when the home will be ready, with an explanation that the date is an estimate and may change
6. Management arrangements – details of any management company, estimated service charges, and the buyer’s obligations
7. Known issues – any factors that could materially affect the buyer’s use and enjoyment of the property, such as planned future development phases, nearby infrastructure projects, or known environmental factors

These disclosure requirements are designed to prevent the all-too-common situation where buyers discover unexpected costs or restrictions only after they have committed to the purchase. If a developer fails to disclose material information, this can form the basis of a complaint under the code.

Reservation Agreement & Contract Protections

The Consumer Code provides specific protections at two critical stages: the reservation agreement and the exchange of contracts. These protections are designed to prevent buyers from being locked into unsuitable purchases and to ensure that the contractual terms are fair and transparent.

Reservation Agreement Protections

A reservation agreement is the initial document you sign when you decide to purchase a new build home. It typically involves paying a reservation fee (usually between £500 and £2,000) to secure the property while the legal process proceeds. Under the Consumer Code:

• The reservation agreement must clearly state the amount of the reservation fee, whether it is refundable, and the circumstances in which it may be forfeited
• You must be given a minimum cooling-off period during which you can withdraw and receive a full refund of your reservation fee
• The agreement must set out an expected timeline for exchange of contracts, and the consequences if this timeline is not met by either party
• The developer must not apply unreasonable pressure to sign the reservation agreement – you should be given adequate time to consider the purchase and take independent legal advice
• If the sale does not proceed for reasons outside your control (for example, the developer withdraws the property or makes material changes to the specification), you are entitled to a full refund of the reservation fee

Contract Requirements

The code also sets standards for the purchase contract itself. While the specific contractual terms are a matter for the developer’s and buyer’s solicitors to negotiate, the code requires that contracts must:

• Be fair and not contain unfair terms as defined by the Consumer Rights Act 2015
• Clearly state the specification of the home and any tolerances (e.g., permitted variations in dimensions or materials)
• Set out the completion date or longstop date – the latest date by which the developer must complete the home, beyond which you can withdraw and recover your deposit
• Explain the process for raising and resolving snagging issues
• Include details of the warranty and the after-sales service arrangements

Your solicitor should review the contract carefully against the code’s requirements and raise any concerns with the developer’s legal team. Understanding the full scope of new build contracts will help you engage more effectively with this process.

After-Sales Service Standards

The Consumer Code does not stop at the point of sale – it also sets standards for the after-sales service that developers must provide. This is particularly important for new build buyers because issues such as snagging, defects, and unfinished estate works are common in the weeks and months after moving in.

What the Code Requires After Completion

Under the code, developers must:

1. Provide a comprehensive handover – including a demonstration of the home’s systems and features, manuals and warranty documents, and a written summary of what to do if problems arise
2. Operate a fair and accessible after-sales service – with a clear process for reporting and tracking issues, reasonable response times, and a commitment to resolving problems promptly
3. Rectify snagging and defects – within a reasonable timeframe, in accordance with the defect liability period terms
4. Provide emergency contact details – for urgent issues that arise outside normal working hours (such as major leaks, heating failures, or security concerns)
5. Complete outstanding estate works – communal areas, landscaping, and infrastructure should be finished within a reasonable period after completion, and the developer must keep residents informed of progress

Service Level Expectations

The code expects developers to respond to reported issues within reasonable timeframes:

• Emergency issues (e.g., no heating, major water leak, security breach) – response within 24 hours
• Urgent issues (e.g., faulty electrics, plumbing problems affecting daily use) – response within 3–5 working days
• Routine snagging (e.g., cosmetic issues, minor fitting adjustments) – response within a reasonable period, typically agreed at the point of reporting

It is important to note that “response” does not necessarily mean the issue will be fully resolved within these timeframes – it means the developer should acknowledge the report, assess the issue, and provide a timeline for resolution. However, the code does require that the developer acts with reasonable diligence and does not unreasonably delay repairs. For a full understanding of your snagging rights and process, consult our comprehensive guide.

Complaints & Dispute Resolution: How to Use the Code

Perhaps the most valuable aspect of the Consumer Code is the formal complaints and dispute resolution procedure it establishes. If things go wrong and you cannot resolve the issue directly with your developer, the code provides a structured escalation path that can lead to binding adjudication by an independent ombudsman.

Step 1: Raise the Issue with the Developer

The first step is always to raise your complaint directly with the developer through their published complaints procedure. The code requires every registered developer to have a documented complaints process, and they must:

• Acknowledge your complaint promptly
• Investigate the matter fairly and thoroughly
• Provide a written response within a reasonable timeframe
• Explain what action they propose to take (or why they believe no action is required)
• Inform you of your right to escalate the complaint if you are not satisfied with their response

Step 2: Escalate to the Developer’s Internal Complaints Process

If you are not satisfied with the initial response, you can escalate to the next level within the developer’s complaints procedure. Most developers have a two-stage internal process, with the second stage reviewed by a more senior team or department. The developer has a maximum of 56 calendar days from your initial complaint to issue a final response. If they fail to respond within this timeframe, or if their final response does not resolve the matter, you can move to the next stage.

Step 3: Refer to the New Homes Ombudsman Service

If the developer’s internal process does not resolve your complaint, you can refer it to the New Homes Ombudsman Service. This is an independent adjudication service operated by the NHQB, and its decisions are binding on the developer (though not on the buyer – you retain your legal rights to pursue other remedies if you disagree with the outcome).

The Ombudsman can:

• Order the developer to apologise
• Order the developer to carry out specific remedial work
• Award financial compensation for losses, distress, or inconvenience
• Order the developer to take other specified actions to put matters right

There is no fee to refer a complaint to the New Homes Ombudsman Service, making it accessible to all buyers regardless of their financial circumstances.

How to Use the Consumer Code Effectively

Knowing your rights under the Consumer Code is only useful if you know how to exercise them. Here are practical steps you can take to ensure you benefit from the code’s protections throughout your new build buying process.

Before You Buy

1. Verify the developer is registered – Check the NHQB website to confirm that your developer is registered and subject to the code. If they are not registered, you may have fewer consumer protections
2. Request all pre-purchase information – Ask the developer for all the information required under the code, including specification details, tenure information, management arrangements, and any known issues affecting the property or development
3. Read the reservation agreement carefully – Understand the cooling-off period, the conditions for refund, and the expected timeline for exchange
4. Take independent legal advice – Instruct a solicitor who is experienced in new build conveyancing and familiar with the code’s requirements

During the Purchase

• Keep records of everything – Save all correspondence, marketing materials, specification documents, and verbal commitments (confirmed in writing)
• Ask questions in writing – Wherever possible, put important questions to the developer in writing (email or letter) so there is a clear record of what was said and when
• Report concerns promptly – If you notice that the developer is not meeting the code’s standards (e.g., providing incomplete information or applying unreasonable pressure), raise this early and in writing

After Completion

• Conduct a thorough snagging inspection – Ideally before completion, or as soon as possible afterwards. Use a professional snagging checklist and document all issues with photographs
• Report issues through the developer’s formal process – Use the after-sales reporting system provided by the developer, and keep copies of all reports and correspondence
• Know your escalation rights – If the developer does not respond within the expected timeframes, or if you are dissatisfied with their response, do not hesitate to escalate through the complaints procedure and, if necessary, to the New Homes Ombudsman Service

Frequently Asked Questions

Does the Consumer Code apply to all new build homes?

The New Homes Quality Code applies to all developers registered with the New Homes Quality Board, which includes virtually all major and medium-sized developers selling new build homes with warranty cover from NHBC, LABC, Premier Guarantee, and other recognised providers. Small-scale developers or self-builders may not be registered, so it is important to check. If your developer is not registered, the code’s complaint and dispute resolution procedures will not be available to you, though your general legal rights under consumer protection legislation (such as the Consumer Rights Act 2015) still apply.

Can I get my reservation fee back if I change my mind?

Under the Consumer Code, you have a cooling-off period after signing the reservation agreement during which you can withdraw and receive a full refund. The length of this period is specified in the reservation agreement. Outside of this cooling-off period, whether you can recover your reservation fee depends on the specific terms of the agreement and the circumstances of your withdrawal. If the sale falls through due to reasons outside your control (e.g., the developer changes the specification materially, or the property is withdrawn), you should be entitled to a full refund. Always check the specific terms and seek legal advice from your solicitor if there is a dispute.

What can the New Homes Ombudsman actually do?

The New Homes Ombudsman can order the developer to apologise, carry out remedial work, pay financial compensation, and take other actions to resolve your complaint. The Ombudsman’s decisions are binding on the developer, meaning the developer must comply or face sanctions from the NHQB. However, the Ombudsman’s decision does not prevent you from pursuing other legal remedies (such as court action) if you are not satisfied with the outcome. There is no cost to you for using the Ombudsman service.

What if my developer is not registered with the NHQB?

If your developer is not registered with the NHQB, the Consumer Code’s specific protections and complaint procedures will not apply. However, you still have legal rights under the Consumer Rights Act 2015, general contract law, and any warranty provided with the home. You may also be able to complain to Trading Standards if the developer’s conduct is misleading or unfair. That said, buying from a registered developer provides an additional layer of protection, and it is generally advisable to check registration status before committing to a purchase.

How long do I have to make a complaint under the code?

The code does not specify a single fixed time limit for all complaints, but you should raise issues as promptly as possible. For snagging and defects, report them as soon as they are discovered. For complaints about the sales process or pre-purchase information, these should be raised while they are still relevant. The developer’s complaints procedure will set out specific timeframes, and the overall internal process should be concluded within 56 calendar days. If you need to refer a complaint to the Ombudsman, there may be a time limit after receiving the developer’s final response – check the current referral requirements on the NHQB website. Separately, your rights under the defect liability period and warranty have their own timeframes.

Conclusion: Empowering Yourself as a New Build Buyer

The New Homes Quality Code represents a significant improvement in consumer protection for new build buyers. Its independence from the building industry, clearer standards, stronger enforcement mechanisms, and the establishment of the New Homes Ombudsman Service mean that you have more tools at your disposal than ever before if things go wrong with your purchase.

However, the code works best when buyers are proactive about understanding and exercising their rights. The key principles to remember are:

• Verify your developer is registered with the NHQB before committing
• Insist on receiving all pre-purchase information required by the code
• Read and understand your reservation agreement – know the cooling-off period and refund conditions
• Keep detailed records of all communications, documents, and issues throughout the purchase and beyond
• Report issues promptly and formally through the developer’s complaints procedure
• Do not hesitate to escalate to the New Homes Ombudsman if the developer does not resolve your complaint fairly and within a reasonable time
• Seek professional legal advice if you have specific legal concerns or if the dispute involves significant financial implications

The Consumer Code is a valuable tool in your armoury as a new build buyer, but it should be used alongside – not instead of – proper legal advice. Instruct a solicitor experienced in new build conveyancing, understand your contractual rights, and approach the purchase with your eyes open. With the right knowledge and support, you can navigate the new build buying process with confidence.