Summary
Relevant sections of the New Homes Quality Code
Part 1: Selling a new home
Part 2: Legal documents, information, inspection and completion
Investigation outcome
Complaint not upheld.
Recommendations for developers
- Make clear which service charges are estimates and explain factors that may affect future costs.
- Retain and reference documentation to support transparency and clarity during sales.
Issue
The customer complained that the developer failed to provide clear and accurate information when selling a new home, specifically in relation to the electric vehicle charging point (EVCP) and the service charges that would apply to the property.
Circumstances
- The customer raised concerns that they were not informed that the EVCP serving their property would be connected via a dual, shared feeder pillar rather than a direct feeder. The customer said they believed they would be able to use solar panels to charge their vehicle and felt the developer had misrepresented how the EVCP would operate.
- The customer also complained that the developer failed to clearly explain the service charges associated with the property, including EVCP‑related costs and land trust charges. They questioned whether the estimates provided at reservation were accurate and said their actual charges exceeded expectations.
Ombudsman’s decision
The Ombudsman considered the plans, reservation documentation and evidence available at the time the property was reserved. They found that the plans clearly showed an EVCP feeder pillar adjacent to the property and did not indicate that a direct feeder or internal EVCP was included as part of the home. The Ombudsman was satisfied that the developer had provided sufficiently clear and accurate information about the EVCP and had not misled the customer.
The Ombudsman also considered whether service charges had been adequately explained. They found that the reservation documentation, affordability guide, and information sheet set out estimated service charges and made clear that EVCP costs would apply separately. While actual charges later exceeded estimates, the Ombudsman did not find persuasive evidence that the developer knowingly misrepresented likely costs or breached the Code.
Learnings
- Clear plans and reservation documentation play a key role in resolving disputes about what information was provided at the sale.
- Estimates for service charges should be clearly identified as indicative and not guaranteed.
