Consumer groups are growing increasingly frustrated at the government’s slow pace in making new homebuyer protections mandatory, a delay that’s leaving families vulnerable to costly defects and poor service. The New Homes Ombudsman Scheme (NHOS), set up in 2022, was designed to help homebuyers dispute issues with developers. Yet, four years later, participation isn’t compulsory. Only about two-thirds of builders have signed up, leaving thousands of buyers exposed without recourse. As complaints more than doubled over the past year to roughly 100 a month, the Homeowners Alliance stepped in, demanding the scheme be made statutory. Their plea: ministers already have the legislative powers needed, so why wait?
The Competition and Markets Authority’s 2024 review painted a bleak picture. It found that developers have almost no incentive to ensure build quality and that many new homeowners are encountering alarming problems, ranging from interior snags to ceiling collapses. Affected buyers often feel like they have greater warranty rights when purchasing small appliances than when investing in a multimillion-pound property. The CMA recommended a mandatory NHOS to shift that balance.
Buyers of new homes shouldn’t be burdened with fixing what developers deliver. One new homeowner told the New Homes Ombudsman about cracks in structural supports and leaky roofs, issues that were only picked up after months of living there. With voluntary sign-ups only covering larger developers, smaller ones remain unregulated; homeowners find themselves without access to independent adjudication or redress.
The scale of the housing market underscores the urgency. Last year saw 123,000 new homes completed, and the government has set out to build 1.5 million by 2030. Meanwhile, the NHOS registry lists 545 developers, but about 150 are sitting on the sidelines, unwilling or unbothered to join. The government has publicly endorsed the idea of mandating the scheme, but no timeline has been given.
Officials from the Department for Housing, Communities and Local Government insist they are committed and say they’re working to bring mandatory NHOS into law “in due course.” But to consumer advocates, “in due course” is not soon enough. They argue that every delay means families buying into new builds are bearing unacceptable risk, often at a time when people are already stretched financially.
For prospective homeowners, more reassurance is needed. Mandating participation would mean every new build comes with guaranteed oversight, independent dispute resolution, and the promise that developers stand behind their work, even after you’ve moved in. It’s a fairness measure now overdue. A toaster might cost a hundred pounds, but a new home costs far more, deserves far stronger protections, and shouldn’t be left to chance.
