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Government confirms plans for New Homes Ombudsman

Ministers have confirmed plans to set up a ‘New Homes Ombudsman’, which will see compensation paid to people faced with shoddy work in new builds.

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Picture: Getty
Picture: Getty
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Government confirms plans for New Homes Ombudsman #ukhousing

“Homebuyers will be able to access help when they need it, so disputes can be resolved faster and people can get the compensation they deserve,” promises @RobertJenrick confirming plans for New Homes Ombudsman #ukhousing

The government said legislation requiring all developers to belong to the ombudsman will be passed “as soon as possible”. Plans for a New Homes Ombudsman were announced in October 2018.

Housing secretary Robert Jenrick claimed that the body will “raise the game of house builders across the sector”.

It will have statutory powers to ban “rogue developers” from building and order fixes for poor building work.

Currently, buyers of defective new build homes must pursue long and costly court cases to solve disputes with developers.


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The government has also confirmed plans to make builders benefiting from the Help to Buy scheme from 2021 until it ends in 2023 meet certain standards, such as signing up to the Building Safety Charter if selling flats in blocks taller than six storeys or 18 metres.

Unlike the current Help to Buy scheme, it will be available only to first-time buyers and will include regional price caps – from £186,000 in the North East to £600,000 in London.

Mr Jenrick said: “It’s completely unacceptable that so many people struggle to get answers when they find issues with their dream new home.

“That’s why the ombudsman will stop rogue developers getting away with shoddy building work and raise the game of house builders across the sector.

“Homebuyers will be able to access help when they need it, so disputes can be resolved faster and people can get the compensation they deserve.”

The New Homes Ombudsman will be independent from the industry and funded through fees paid by developers, the Ministry of Housing, Communities and Local Government said.

It will be separate to other ombudsman services in the housing market, including the Housing Ombudsman which investigates complaints by social housing residents.

The government has published a summary of responses to a consultation on proposals for the New Homes Ombudsman, which ran between June and August 2019.

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