‘Rogue developers’ who build ‘shoddy’ new homes will be forced to compensate buyers under new plans


‘Rogue developers’ who build ‘shoddy’ new homes will be forced to pay compensation to buyers under new Government plan for a housing watchdog to boost ‘unacceptable’ standards

  • Robert Jenrick said an independent new homes watchdog was being set up
  • Said ‘good quality’ homes as important as getting people on housing ladder 
  • Developers will have to compensate owners for ‘shoddy workmanship’

‘Rogue’ housebuilders will be forced to cough up and compensate buyers if they sell them ‘shoddy’ homes that are not up to scratch, the government announced today.

Housing minister Robert Jenrick told MPs that an independent new homes watchdog was being set up with oversight of all developers.

He told the Commons the New Homes Ombudsman would seek to ensure ‘swift action’ to resolve problems, such as faulty wiring, encountered by people after they have bought a new property. 

‘As well as enabling people on to the housing ladder, it’s important the new homes we build are good quality,’ he said.

Housing minister Robert Jenrick told MPs that an independent new homes watchdog was being set up with oversight of all developers.

He told the Commons the New Homes Ombudsman would seek to ensure 'swift action' to resolve problems encountered by people after they have bought a new property

He told the Commons the New Homes Ombudsman would seek to ensure ‘swift action’ to resolve problems encountered by people after they have bought a new property

‘It’s unacceptable that new houses have been built in many cases to a shoddy standard and that some house builders have displayed poor service when house buyers find they’ve got problems with their new home.

‘That’s why today I’m announcing a new statutory independent New Homes Ombudsman to protect home buyers from these rogue developers.

‘Poor-quality builders will now have to pay compensation for shoddy workmanship, house builders must join the new ombudsman so that all house buyers see swift action to resolve issues they encounter, and builders must put quality first if they wish to continue to be part of the Government’s Help to Buy scheme.’

It came as a survey found that one in seven couples aged under 45 have put off having children or not had them at all due to their housing situation.

Some 13 per cent of UK adults under the age of 45 and in a relationship have delayed or not had children due to their housing situation, according to a YouGov poll undertaken for the Affordable Housing Commission.

And nearly a third (31 per cent) of parents with adult children aged 18-plus living at home either do not expect them to move out – or believe it will take 10 years or more.

The survey of more than 2,100 people found that 10 per cent of adults now live with family or friends, rising to nearly one in five (18 per cent) for 25 to 34-year-olds.

One in seven (13 per cent) people surveyed said their mental health had been negatively affected by their housing situation, rising to a quarter (25 per cent) for those living in ‘unaffordable’ housing, where rent or mortgage equal more than a third of their total household income.

Lord Richard Best, chair of the Affordable Housing Commission, which was set up by think tank the Smith Institute and is funded by the Nationwide Foundation, said: ‘The housing system is hindering, not helping, millions of people – particularly those who are putting off big life decisions because of it.

‘Unaffordable housing, especially in the private rented sector, is now a serious strain on people’s mental health and a barrier to having a better life.

‘We need a fundamental rethink and structural change to rebalance it and ensure it works now and for future generations.’

Lord Best is a past chief executive of the National Housing Federation and the Joseph Rowntree Foundation. He was also president of the Local Government Association (LGA) for nine years.

The Commission is due to publish recommendations in March 2020.

A Ministry of Housing, Communities and Local Government spokeswoman said: ‘Since 2010 this Government has delivered over 464,000 new affordable homes, including 141,000 social homes.

‘In addition to this, the social housing waiting list has decreased by 40% since 2012.

‘Last year we delivered more homes than any year in the last 30 years and have committed to delivering a million more in this parliament.

‘We have also abolished the council borrowing cap so local authorities are able to continue to build more social homes, giving families the chance to find somewhere that is safe and secure.’