The New Homes Quality Board launched in 2022, offering enhanced protections for buyers of new homes. As long as a housebuilder or developer has followed the correct registration process, including completing the necessary training, introducing a complaints procedure, and following other processes and procedures that are needed to meet the requirements of this New Homes Quality Code (the Code), they will become a registered developer.

Registered developers agree to follow the Code and the New Homes Ombudsman Service, including accepting the decisions of the New Homes Ombudsman in relation to dealings with customers. If a registered developer does not meet the required standards, or fails to accept and act in line with the decisions of the New Homes Ombudsman, they may be referred to the NHQB Discipline & Sanctions Committee. This committee investigates whether a breach (of the Code or other disciplinary offence) has occurred by a developer and, if so, what corrective action or disciplinary measures are to be applied. These can range from requiring employees to be retrained, fines being levied, or ultimately removal from the Register of Developers.

The Code sets out the requirements that registered developers must meet. We may update the Code from time to time to reflect changes to industry best practice as well as the decisions of the New Homes Ombudsman Service. We will decide how and when each amended or updated Code will come into force.

All homes built by registered developers must meet building-safety and other regulations. All registered developers should aim to make sure there are no snags or defects in their properties before the keys are handed over to a customer. If there are any snags or defects, these should be put right within the agreed timescales.

What the Code covers

For the purposes of this Code, ‘customer’ means a person who is buying a home or intends to buy as a named individual. If a new home is being bought in joint names, ‘the customer’ includes all the joint customers. We expect registered developers to apply the 10 Guiding Principles of the New Homes Quality Code when dealing with all occupiers, including those in shared ownership.

Areas which are not covered by the Code are:

1. where the home is bought by a commercial entity (i.e. a company, trust, charity, etc.);
2. claims for issues that could be dealt with through the structural warranty;
3. claims for blight (where a home falls in value or becomes difficult to sell because of major public work in the area);
4. claims related to the tenure or occupancy status of other properties;
5. claims related to loss of value due to changes in market conditions or due to other factors outside the control of the developer. (Other claims relating to loss of value where there’s a breach of the Code that is within the control of the developer, may be considered by the New Homes Ombudsman Service on a discretionary basis, but would normally be considered outside scope and/or better suited to the courts).
6. personal injury; or
7. claims that are not covered by the scheme rules of the New Homes Ombudsman Service.

The Code has two parts:

1. Statement of Principles – a statement of the core principles that registered developers agree to apply to their business and their dealings with customers.
2. The Practical Steps – a statement of what is expected at each stage of the process.

We may sometimes provide (and amend or add to) developer guidance to help registered developers meet the requirements of the Code. The guidance may include training materials and example documents.

We may sometimes provide (and amend or add to) customer guidance to help customers in matters such as how to make a complaint under the Code and what to expect from their registered developer.

There is a glossary of terms at the end of this document which explains some of the terms used in the Code.

To avoid doubt nothing in this Code supersedes a developer’s legal obligations and the developer guidance and customer guidance do not take priority over or replace the statement of principles or the practical steps, which registered developers must keep to.

The transition period

Following their application, developers will have time (expected to be around six months) to confirm they are ready to move to arrangements under the Code, including finalising training, branding and so on, before they are ‘live’ (activated) under the New Homes Quality Code. This is called the ‘transition period’ and only from the date of activation can developers use the NHQB logo, and their customers who reserve a home on or after that date be protected by the Code and the New Homes Ombudsman Service. Developers may choose to introduce their new arrangements at different times for different businesses or subsidiaries (if this applies and where they are separate legal entities).

Developers are expected to maintain commitments previously made to customers under other new homes Code schemes prior to activation with the NHQB. There are some legal differences within the different nations of the UK. Registered developers must get professional advice to make sure they are keeping to all laws that apply to them

There are some legal differences within the different nations of the UK. Registered developers must get professional advice to make sure they are keeping to all laws that apply to them.