About the Code

What is the Code?

Buying a new-build home is one of the largest investments most people are likely to make, so it’s important that they understand the process, what they’re buying and what help is available if problems arise.

The Consumer Code for New Homes, approved by the Chartered Trading Standards Institute, has been established to ensure that best practice is followed by registered Developers in respect of the marketing & selling of New Homes to consumers. The Code also sets expected standards for After-Sales customer care service.

The Code establishes mandatory requirements that apply to all Developers registered with the Code.

Where a Developer (or their Agent) is found to be in serious breach of the Code, the Code Sponsor can apply a range of sanctions, including removal from the Code’s register of Members. This will also result in removal from the registers maintained by the Structural Warranty Bodies who support the Code.

The Code provides a clear consumer complaints process, underpinned by an Independent Dispute Resolution Scheme operated through CEDR Limited, for consumer complaints that arise and are made in writing to the Developer within two years of the date of Legal Completion.

The Code also benefits second and subsequent Buyers of the New Home but only in respect of After-Sales matters reported to the Developer within two years of the date of the Legal Completion of the original New Home purchase.

Nothing in the Code affects a Buyer’s existing legal rights or replaces Developers’ legal obligations or existing legislation regarding the New Home.

 

Which version of the Code applies to you?

For homes reserved up to and including the 31st December 2023: Version 4 of the Code applies.

For homes reserved from the 1st January 2024: Version 5 of the Code applies.

Download the Code – Version 4  for reservations made up to the 31st December 2023

Download the Code – Version 5  for reservations made from the 1st January 2024

The Code covers the New Home buying process to ensure that the selling activities the Developer engages in are of a consistently high standard. This includes:

  • Pre-Contract Stage: Ensuring high standards of customer service, fair and clear documentation, and adequate information provision, to ensure consumers are able to make an informed decision about buying a New Home before they enter into Contract with a Developer.
  • Contract Exchange Stage: Governing the Contract of Sale, requiring minimum standards for fair and transparent contracts, accurate information about when the property will be ready, termination rights, changes to New Homes after Contract, and protecting deposits & pre-payments.
  • Legal Completion: Providing minimum standards for what must be done, the stage the New Home must have reached and what information must have been provided before Legal Completion can take place, ensuring consumers’ health & safety and providing the opportunity for a Pre-Completion Inspection.
  • After Occupation Starts: Setting minimum standards for the After-Sales Service which Buyers should expect to receive, and ensuring they have suitable information for maintaining and living in the New Home.
  • Complaints & Disputes: Setting minimum requirements for Complaints Procedures and giving consumers access to clear, speedy and free cost Independent Dispute Resolution if things don’t go according to plan.

The Code ensures that Buyers of New Homes:

  • are treated fairly by the Developer (and their Agent)
  • understand the Developer’s legal status and identity as a company, so the Buyer understands who they have bought their New Home from
  • are given clear and reliable information on which to make informed decisions about purchasing a New Home
  • know what standards the Developer must deliver for the New Home
  • know what service levels to expect from the Developer (and their Agent)
  • receive clear advice about the main aspects of the New Home that the Buyer will need to maintain
  • know how to access timely arrangements for resolving Disputes if they are dissatisfied
  • who may be Vulnerable to be identified and given suitable support to help them make decisions

Find out more About the Code

 

Code Requirements

Find out more about what the Code requires of all registered Developers, and how the Code is enforced.

Code Reviews

Find out what other people thought about the support the Code was able to offer them in the New Home buying process.

Annual Reports

Discover the Code’s Annual Reports.

Corporate

Find out the background to the Code and the parties behind it.