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Move is a first step towards the creation of a New Homes Ombudsman scheme
Natalie Elphicke MP has been announced as the interim chair of the interim New Homes Quality Board, a new independent body that will have responsibility for the quality of new build homes and consumer redress.
The interim board, consisting of representatives from across the sector has ‘met’ for the first time and will now:
The New Homes Quality Board will be guided by the principles of independence, transparency and integrity and will contain a mix of representatives of consumer bodies, home builders, warranty providers, lenders and independents such that it will not be dominated by any one group.
The UK Government has made quite clear that it expects the home building industry across all nations to implement comprehensive new measures to ensure further improvements and consistency in the quality of new homes, better customer service and strengthened consumer redress as a matter of urgency. The industry fully supports this and today’s announcement demonstrates its commitment to delivering a step change in how it operates and deals with customers.
Since the publication of the All-Party Parliamentary Group for Excellence in the Built Environment report ‘More homes, fewer complaints’ in 2016 (and the subsequent ‘Better redress for home buyers’ report in 2018) the industry has been working with a broad range of stakeholders on the complex arrangements to enable the development of a framework that will include the creation of an ombudsman service – in line with Government requirements and commitments.
Natalie Elphicke was appointed as the independent ‘New Homes Quality Champion’ last summer with a view to progressing arrangements to the point where they can be ‘operationalised’. Since her election to Parliament she he has continued to oversee the development of proposals and the appointment of the interim board.
The ambition is that a permanent chair and board will be in place by Autumn with a view to the new code and ombudsman service being in place by the start of 2021. There will then be a transition period for builders to sign up to the new arrangements. It is anticipated Government will ultimately legislate to improve consumer redress as soon as possible and these new proposals aim to complement such reform.
Natalie Elphicke said:
"This is a welcome move, and a much needed step in the right direction. I am committed to ensuring that the new arrangements will deliver a step change in the quality of new homes and customer experience. They will be based in the principles of independence, transparency and integrity, values I know this Government, and the industry, are determined to instil. I look forward to working with all parties to finalise and implement these changes as quickly as possible.”
Nicola Barclay, Chief Executive of Homes for Scotland, said: “We are delighted to see this progression, which reinforces our determination to ensure a high-quality home for each and every purchaser. We are also pleased that the stringent requirements will see consumers receive the same level of clarity and consistency wherever they live across the UK."
Stewart Baseley, executive chairman at HBF said:
“This is the next step in what has been a long and strenuous journey involving a broad range of stakeholders. The move demonstrates the commitment of the industry to providing buyers with absolute confidence in their builder and the quality of their new home. The new body will help ensure that the steady improvement in the quality of new build homes we have seen in recent years continues. Customers will be reassured that in the instances where they do have issues with their new home, they will have recourse to a fast, effective independent dispute resolution service via an ombudsman. The new robust arrangements will provide a huge challenge for builders but the industry fully recognises the need to deliver, and we will.”
The interim board will be responsible for developing a process by which a NHO is appointed, in line with Government expectations as set out in their response to the consultation carried out last year. It will engage with the Ombudsman Association during this process to ensure that the proposals meet their best practice criteria of Independence, Fairness, Effectiveness, Openness & Transparency, and Accountability.
The interim board will also be expected to develop a reporting system that will measure the performance of the industry against the new code. It is anticipated that under the main board will sit consumer, warranty and builder committees and a code board with responsibility for reviewing and updating the code, at the direction of the main board
All the new arrangements will be paid for by the industry and once established, the NHO will be free to consumers, with access being through a new portal.
The new code, committed to ensuring the fair treatment of customers, aims to plug the gaps identified in a report by WPI Economics, who were commissioned in 2017 to undertake a review of the whole new homes redress process. It will cover all aspects of the construction, inspection and sales process and place requirements on all parties involved. The code will include:
Natalie Elphicke:
Natalie Elphicke is a qualified barrister and solicitor. In 2015 she was awarded an OBE in the Queen’s Birthday Honours for her services to housing.
Natalie's background is as a national specialist in complex housing and structured finance law and public policy. A former international law firm partner with over £4billion transactional experience, she had been described as "probably the best in the City" in her specialist area of housing.
She has extensive experience structuring and successfully setting up new organisations in her professional capacities, working with a diverse range of stakeholders. This includes most recently at the Housing & Finance Institute. She has a strong reputation as an independent commentator on housing matters ranging from housing policies to building new homes faster as well as in relation to the quality and safety of new build construction.
Natalie is a member of the Jaywick Sands coastal community team and a member of the NHBC advisory panel. She is a voluntary worker at her local homeless shelter, having previously volunteered at free legal/advice centres over many years.
In December 2019, Natalie was elected as a Member of Parliament for Dover & Deal. She is a PPS in the Ministry of Defence.
The Interim Board
The Interim Board is the first step in the creation of the independent New Homes Quality Board. It comprises of representatives from across the sector and is made up as follows:
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