The Office for Fair Trading (OFT) has announced that homebuilding companies must give better protection for their customers. A new code of conduct will mean that homebuyers will get more help if problems arise when moving into a new home.
This news comes as the OFT's report showed that worries over 'Landbanking', a term used to describe the hoarding of land to improve company profits were unnecessary. The report found no evidence of Landbanking taking place, dismissing unfair practice by homebuilding companies. Despite this positive news, the Royal Institution of Chartered Surveyors has commented that although there has been no evidence that Landbanking is purposefully happening, the system allows it to happen.
A significant result of the report is a move to give homebuyers more protection, after it was revealed that many homebuyers experience significant delays or problems when buying new build homes. The improvement of protection is to be internally regulated in an attempt to improve the situation after The Home Builders Federation, The National House Building Council and The Council of Mortgage Lenders were in agreement to create a code of conduct.
The code of conduct will include guidelines for homebuyers instructing them what to do when things go wrong. A previous report by the OFT found 7 in 10 buyers of new properties found faults in their homes. Most of these problems were reported to be minor; however, new regulations will mean that problems will have to be resolved. The OFT has made clear that if the new code of conduct is not enforced internally then a statutory system will be introduced.
This news comes as the OFT's report showed that worries over 'Landbanking', a term used to describe the hoarding of land to improve company profits were unnecessary. The report found no evidence of Landbanking taking place, dismissing unfair practice by homebuilding companies. Despite this positive news, the Royal Institution of Chartered Surveyors has commented that although there has been no evidence that Landbanking is purposefully happening, the system allows it to happen.
A significant result of the report is a move to give homebuyers more protection, after it was revealed that many homebuyers experience significant delays or problems when buying new build homes. The improvement of protection is to be internally regulated in an attempt to improve the situation after The Home Builders Federation, The National House Building Council and The Council of Mortgage Lenders were in agreement to create a code of conduct.
The code of conduct will include guidelines for homebuyers instructing them what to do when things go wrong. A previous report by the OFT found 7 in 10 buyers of new properties found faults in their homes. Most of these problems were reported to be minor; however, new regulations will mean that problems will have to be resolved. The OFT has made clear that if the new code of conduct is not enforced internally then a statutory system will be introduced.
