A worrying new report has revealed that buyers opting for new-build homes are being left exposed by warranties that fall short of their needs and expectations.
The HomeOwners Alliance said that new homes are often marketed by developers with the promise of lengthy warranties offering peace of mind.
However, many consumers aren’t aware that outside of an initial two-year period it is primarily structural issues that are covered.
According to the report, nearly half of new-build property buyers in the last 10 years (46%) expect the full 10-year warranty to cover minor snagging issues on their new-build home when standard warranties cover issues that only relate to or affect the structure of the home.
Problems that new-build homeowners think are covered in the standard warranty include exterior faults (79%), damp (79%), wiring faults (71%), plumbing faults (63%) and insulation (58%).
The report also found that 58% of people who have bought these types of home in the last 10 years think that the warranty was an advantage over an older property.
The survey findings further reinforce conclusions from the All Party Parliamentary Group (APPG) report ‘More homes, fewer complaints’, which stated that consumers think a warranty is a hallmark of absolute quality.
Paula Higgins, chief executive of the HomeOwners Alliance, said: “The house building industry needs to do a better job at helping buyers to understand the warranty system for new-build homes, how it works and how warranties are structured.
“Where things do go wrong in the initial two-year period, they should be resolved swiftly. If problems aren’t fixed, the warranty provider needs to have the clout to compel developers to act. Consumers expect and deserve a warranty system that provides no fuss cover when problems arise as well as speedy payments for more complex issues.”
The main providers of new build warranties include NHBC, LABC and PremierGuarantee. The NHBC which provides warranties for approximately 80% of new homes in the UK, has asked the Competition & Markets Authority (CMA) to reconsider some of the rules that bind it (imposed in 1995) now that there is more competition from other providers and more choice for housebuilders.
In addition, the housebuilding industry has come under mounting pressure to raise quality standards from the aforementioned APPG report into the quality and workmanship of new housing in England.
Consumers who have bought new-build properties in the past 10 years have three clear areas of importance. They want the warranty provider to take the lead on resolving issues (22%), claims to be paid without fuss (18%) and full cover to the rebuild value of their home (13%).
What Mortgage has teamed up with London & Country to offer you expert advice on the right mortgage deal.
Whether you’re buying a new home, remortgaging to a new deal or buying an investment property, L&C can help – and you’ll pay no fee for their advice. To find out more, click here.
Loading ...