New build properties are often bought off-plan with purchasers relying on sales literature, plans and what is currently built on-site.

This recent New Homes Quality Board (NHQB) case study demonstrates how complaints may arise from homeowners where property plans are not clear or easily understood, emphasising the need for developers to ensure that any further works or changes to the property are transparently communicated to homeowners throughout the process.

What was the complaint?

The customer attended a walk-through inspection of the property prior to exchange of contracts. At this stage, while the build itself was finished, the groundwork to build-up the front gardens and paths was still to be completed.

It was understood that the access path to the front door was to be level upon completion, however, steps were added to the property following exchange of contracts and the customer was informed of this addition by email.

The customer raised concerns in respect of the steps and, while the developer proposed the erection of a ramp, this was declined by the customer and ultimately no agreement was reached between the parties to resolve the matter.

Consequently, the customer raised a complaint with the New Homes Ombudsman Service. The complaint was largely based on the alleged lack of transparency within the technical plans provided to the customer and a lack of clear communication provided by the developer, both in respect of the works and staff engagement with their raised concerns.

The customer also stated that they felt pressured to proceed with the sale in fear of losing their deposit if they pulled out.

Was the homeowner’s complaint upheld?

The complaint was upheld in part and the customer was awarded £5,000.

It was found that the developer did not communicate clearly or transparently with the customer throughout the process, most notably in respect of:

  • Technical plans: The Ombudsman found that while the developer had provided plans to the customer they were not labelled clearly and contributed to the miscommunication in respect of the construction plans to the access door.
  • Ongoing communications: The Ombudsman found that the developer did not adequately communicate the reasons why access to the property needed to be altered or approach the customer to discuss alternatives in good time prior to completion.

The Ombudsman noted that the steps permanently altered the appearance and accessibility of the house, resulting in the customer not receiving the property they expected. The customer found the changes stressful with only a few weeks to go until completion.

Practical tips

In order to mitigate the risk of homeowners making successful complaints regarding transparency and communication, developers should ensure that:

  • Clear and transparent property plans are provided to customers, such as with the use of clearly marked symbols and keys;
  • Communicating substantial updates may not always be appropriate solely by email and developers should consider the benefits of communicating such changes by phone call, which can foster greater empathy and improve relationships with customers; and
  • Customers should be included in the process where changes are required to the property in order to explore the options available and increase the likelihood of a satisfactory outcome being reached for all parties.

Developers should be aware that what may first appear to be simple updates to a property can significantly alter the accessibility of a property and who it can be used by.

Additionally, developers should also remember that homeowners may choose to initiate separate civil proceedings in these types of scenarios. While this is likely to be more difficult to pursue, homeowners may claim larger amounts against developer as part of claims.

New Homes Quality Code

New Homes Quality Code

More than 50% of all new homes sold in England, Scotland and Wales are now protected by the New Homes Quality Code. We outline how housebuilders can comply.  

Find out more