New Build 10-year warranty protection

Warantee protection

New Build 10-year warranty protection

Every new build property in the UK is covered by a 10-year home warranty and insurance guarantee. This protection is comprehensive and covers against a wide variety of possible eventualities including issues with the construction of the new house. In addition, it’s the housebuilder and the approved provider that pays for this insurance and guarantee which means its completely free to the home buyer.

This warranty, when you buy a new build home, protects you in a number of ways. Such as:

Your deposit is protected if you’re buying off-plan. This means if the housebuilder happens to go out of business before the new house is completed you get your deposit back. Otherwise, depending on how far construction has progressed – your new house will still be completed.
If, in the first two years, any issues arise result from the warranty provider’s technical requirements not being met, then the builder must rectify them at no extra cost to the homeowner.
The warranty continues to protect the homeowner, from years three to ten, against structural defects or for problems such as, for example, staircases, internal plastering and double-glazing.

The main warranty and insurance provider in the UK is NHBC (more information on NHBC on our whathouse.com website).It’s Buildmark guarantee covers around 80% of new homes.

Consumer code protection

A consumer code was introduced in April 2010 that is aimed to additionally protect buyers of new houses. This means that if, in any way, buyers are not happy with the service they receive from their housebuilder, they can refer them to this code of conduct that they may be in breach of.

  • All the leading housebuilders signed up to this code which is in addition to the 10-year warranty plan. This new code states that all housebuilders must provide the following;
  • A realistic date for when the building of the new house will be completed
  • Adequate information to buyers regarding the position, contents and lay-out of any off-plan new build home
  • Honest and clear sales material
  • Fair, as well as clear, sales contract terms and conditions including termination rights
  • Easy to access after-sales service plus the details of guarantees for appliances and the warranty etc

In the event of a dispute arising between a housebuilder and homeowner, this code also establishes a new independent resolution service that can be accessed. This covers issues that fall outside of the warranty cover and leave the homebuyer out of pocket. It’s aimed to give an effective as well as relatively quick outcome to disputes. The maximum payout to homebuyers is £15,000.

Any company that is seen not to comply with this code of conduct will not be provided with a warranty from NHBC or any other warranty provider that is part of the Consumer Code for Home Builders scheme such as LABC New Homes Warranty and Premier Guarantee.

For additional information go to Consumer Code for Housebuilders.