DEVELOPERS
Code Update – Version 5
What’s New?
Consumer Code for New Homes is delighted to launch the Fifth Edition of the Code which comes into force on 1 January 2024 and applies to all Reservations signed on or after 1 January 2024 and all Buyers and New Homes which fall into the Scope of the Code.
Download the Code – Version 5 Download the Developer Guidance – Version 5
The Consumer Code for New Homes was originally established in 2015 setting out mandatory requirements that all Developers must meet in the marketing and selling of New Homes and in their After-Sales Service. This update to the Code builds on our significant experience of working with Developers and consumers across the UK, addressing gaps identified in consumer protection and aligning more closely with other codes in the new homes sector, ultimately strengthening protection for consumers who buy new-build homes from Developers.
Key Changes to the Code
- Inclusion of Common Areas (including communal heating, sewage, and drainage systems) within the Scope of the Code.
- Reservations now clearly require a 14-calendar day Cooling-Off Period.
- You must not offer financial incentives to encourage Customers to complete on a New Home which has not yet met warranty quality standards.
- Buyers now have the right to undertake a Pre-Completion Inspection and identify any snags which should be resolved prior to Legal Completion.
- Updated requirements clearly set out what should be included in your Complaints Procedure and the timescales by when Buyers can expect to receive a response to their complaint.
- An Adjudicator may now make a discretionary award for inconvenience up to a maximum of £2,000. (previously it was £1,000)
What does this mean for Developers?
If you build New Homes to sell then Consumer Code for New Homes, a Chartered Trading Standards Institute Approved Code, demonstrates a genuine commitment to consumers to improve standards of construction and customer service in the New Homes market.
Buying a new-build home is an exciting time for your Buyers. But as it is one of the largest investments most people are likely to make, it’s important that they understand the process, what they’re buying and what help is available if problems arise.
As a member of the Consumer Code for New Homes, you can clearly demonstrate to your Buyers that you apply a consistent and high-quality approach to building and selling New Homes in the UK.
What do I have to do now?
We have prepared a summary of the Key Changes to the Code in this new version:
Summary of Key Changes to the Code – Version 5
Next Steps
- Make sure you have downloaded the new versions of the Code and the Developer Guidance and understand what changes you will have to make to your processes.
- Review the new Code Compliance Checklist and make sure you can implement the requirements for each New Home you will sell from 1 January 2024.
- Download a copy of the Guide for Buyers and make sure you give the new version to anyone who reserves a New Home from 1 January 2024.
- Ensure you have a copy of the updated Reservation Agreement Template, and update your Training Plan for you, anyone in your team who is involved in contact with consumers (including agents you use). You will find these resources via the Code Member Portal.
Resources
The Code – Version 5 Developer Guidance – V5 Developer – Overview of the Code – V5