NHQB announces developers must provide five-year cost projections in New Homes Quality Code

“What we’ve been trying to do is unpack it so service charge calculations are more transparent,” Ms Santry said. She also claimed that initial discounting of service charges in shared ownership situations was “not appropriate, because it is giving a false indication of what your costs are likely to be”.

In October, the NHQB took over responsibility for the Shared Ownership Code, and appointed Natasha Greenwood as its new director last week.

Developers must also flag known or expected maintenance costs linked to shared infrastructure such as communal heating systems, grey-water recycling equipment and air source heat pumps, as well as estimated costs for maintaining the property itself during the first five years.

Where exact figures are unavailable, developers must still provide a schedule of cost categories. The changes move affordability from a general transparency principle to a documented pre-contract requirement, embedded at reservation stage and again before exchange.

The update follows a three-year review and consultation with consumer groups and industry stakeholders. According to the NHQB, more than 20 targeted amendments have been introduced to strengthen consumer protections and improve clarity across the journey to homeownership.

Other changes include greater flexibility around pre-completion inspections. Buyers can now undertake their own inspection using the NHQB’s standard checklist, rather than appointing a third-party inspector, after concerns were raised about those facing cost barriers.

Protections against high-pressure sales practices have also been strengthened. Developers must give customers additional time to consider time-limited incentives and clearly distinguish between standard specification items and optional upgrades, in a bid to curb drip-pricing.

House builders must also make written disclosures where they receive commission or other incentives for referring buyers to solicitors, mortgage brokers or other professional advisors.

Emma Toms, chief executive of the NHQB, said: “Delivering on the government’s ambition to build 1.5 million new homes must go hand in hand with protecting quality, trust and consumer confidence. Achieving that balance requires a code that evolves to meet the realities of modern housebuilding.”

She added that, following review by the independent International Code Council and feedback from consumers and industry, the updated code would provide “greater clarity, consistency and confidence across the market”.

Nigel Cates, chief ombudsman of the New Homes Ombudsman Service, said the changes would “strengthen protections for consumers while also supporting a fairer and more consistent approach to dispute resolution”.

The new requirements apply to customers who reserve a home on or after 2 March 2026. Those who reserved before that date remain covered by the October 2023 version of the code.

The NHQB said nearly 60% of new homes currently being built in England, Scotland and Wales are covered by the code.

The code, which was launched in 2022 in response to growing fears about the quality of new builds and developer customer service, has played a key role in imposing greater scrutiny on the house builder industry. 

However, the enhanced stringency of the new code may go some way in ensuring buyers have better protection, although the code is still not compulsory.