Routes to redress

The majority of newly built homes are required to have a new home warranty. Most warranties last 10 years and are split into two periods:

• the first period, usually lasting two years, is known as the builder’s warranty period where the builder of the home is responsible for rectifying a failure by the builder to meet the warranty provider’s requirements (these types of issues are often referred to as ‘snagging’)
• the second period from years three to year ten, provides cover for predominantly structural issues with the home (for instance issues with the foundations, roofs or ceilings).

There are many warranty providers however most homes are covered by one of the following:

• NHBC
• Premier Guarantee
• LABC Warranty

Homebuilders who use these warranty providers agree to adhere to the Consumer Code for Home Builders. As well as requiring homebuilders to have an effective complaints procedure in place, the Consumer Code also offers an Independent Dispute Resolution Scheme for issues that do not fall under a new home warranty.

If your warranty is not with one of the providers listed above, they may be covered by a different consumer code.

If you are concerned about an issue in your new home there are a number of steps you can take.

During the first two years:

• If it is less than two years since the home was built, you should initially raise the concern directly with the homebuilder and ask them to fix the problem.
• If you are not satisfied with the response or actions taken by the homebuilder, contact your warranty provider. If the issue is covered by the warranty, then your warranty provider will advise how they can assist you under their disputes resolution service.
• If the issue is not something that falls within the new home warranty, you may be able to seek assistance through the relevant consumer code dispute resolution scheme. In the case of the three main warranty providers listed above this would be the Consumer Code for Home Builders’ Independent Dispute Resolution Scheme.

After two years:

• If it is more than two years since the home was built, you should contact the warranty provider directly to make a claim. During this period, it is mainly structural faults that are covered.
• If you are not satisfied with the service being provided by the warranty provider or a decision they have made on your claim, you can pursue a complaint through the warranty provider’s complaints process. If you are dissatisfied the outcome of your complaint, you can refer your complaint to the Financial Ombudsman Service.

If you were not the first owner of the new home, but it is less than ten years old, the home will usually still be covered by the warranty and you can follow the steps above to seek redress.

Further information about help for home owners can be found on the HomeOwners Alliance website.