Consumer Code for Home Builders

The Consumer Code for Home Builders, referred to as “the Code,” was established in April 2010 to promote fairness and transparency in the home buying process for purchasers. It serves as an industry-led code of conduct, reinforcing best practices and ensuring that home buyers are fully informed about their consumer rights before and after signing a contract.

Key aspects of the code include:

• Informing home buyers about their consumer rights and fair treatment throughout the process.
• Providing information on low-cost dispute resolution options in case of issues.
• Applicability to home builders registered with the UK’s main home warranty bodies: the National House Building Council (NHBC), Premier Guarantee, and LABC Warranty.

The Code does not apply to second-hand properties, properties bought for social renting, investment properties, self-build properties for owner occupation, or instances where a property is assigned or sub-sold before legal completion.

Enforcement of the Code is carried out by the Home Warranty Bodies, who make compliance a requirement for registered builders and can impose sanctions for breaches.

The Code comprises 19 requirements covering marketing, sales, and after-sales services. Key provisions include:

• Providing clear information to prospective buyers during the pre-contract stage, including reservation agreements, home warranty cover explanations, management services details, and any associated fees.
• Furnishing detailed information for “off-plan” purchases, such as brochures, home contents lists, and compliance standards.
• Ensuring clear and fair contracts are provided at the contract exchange stage, along with explanations of deposit protection and pre-payment processes,.
• Communicating estimated completion dates and handover details for properties yet to be completed, with provisions for cancellation in case of unreasonable delays.
• Establishing accessible and high-quality after-sales services for home buyers during occupation, including effective handling of complaints and dispute resolution mechanisms,.

Overall, the Code aims to enhance consumer confidence and satisfaction in the home buying process by setting clear standards and promoting accountability among home builders.