About Planning Watch
Planning Watch UK was formed following growing public and community concern with major planning issues arising from largely uncontrolled development across the UK.
Of considerable concern is the inadequate legislation to give the consumer protection when purchasing new build properties.
The National Consumer Council
Stated in 2007 that:
Better protection urgently needed for UK new-build home buyers – says NCC
Thu, August 30 2007
Consumers have more rights when they buy a kettle than a newly built home – says New Build Housing – Setting the standard, the latest paper from the National Consumer Council (NCC).
Many people face delays when moving in and have to pay for rented accommodation; others get poor after-sales service; and as many as ninety per cent of people are left with snagging problems such as faulty wiring, badly fitting doors or leaking windows when they buy a new property. But outdated laws are not geared up to help home owners put things right when things go wrong, says the NCC.
Responding to the Office of Fair Trading (OFT) study into new-build housing,
NCC is calling for a radical shake-up in the way that the new-build housing market is regulated, to ensure that UK home owners get the protection they need.
Carl Belgrove, at the NCC explains:
‘Buying a house is probably one of the most expensive investments a person will ever make, yet people have more rights when they buy a kettle.
‘Late completion can be a nightmare for many families as they find themselves out-of-pocket paying rent and storing furniture while they wait to move into their new home. Others face a battle to sort out snagging problems.
‘With government planning to build three million new homes it’s vital that measures are put in place now to protect home owners of the future.’
The report reveals how consumer satisfaction with new homes is on the decline. More than a quarter (29 per cent) of new-build property developments are of ‘poor’ quality and one in four buyers would not recommend their house builder to a friend. Recent mergers have led to fewer new-build companies and developers, reducing choice and competition.
The NCC is calling for statutory protection, similar to the Sale of Goods Act 1979, to protect buyers when things go wrong.
This should be coupled with the introduction of an OFT-approved code of conduct for builders and developers which would give consumers clear information before contracts are signed. It should also ensure that completion dates are accurate and provide a user-friendly complaints procedure. Finally, a fair contract should be adopted industry-wide which would include a definition of the completion date and a minimum snagging period.
-ends-
Notes to editors
1. For case studies please contact the NCC press office on: 020 7881 3019/8
2. New Build Housing: Setting the standard:
http://www.ncc.org.uk/nccpdf/misc/NCC173br_new_build_briefing.pdf
3. NCC’s response to OFT consultation: Putting new houses in order http://www.ncc.org.uk/nccpdf/misc/NCC171cr_putting_new_houses_in_order.pdf
4. On 22 June 2007, the OFT announced a market study into house-building in the UK. The study aims to understand constraints on the ability of the market to deliver sufficient quantities of cost-effective high-quality new houses. There are two main strands to the study:
a) How competition and the planning system affect the delivery of new homes;
b) Homebuyers’ levels of satisfaction with the new houses they purchase.
5. In its final report in 2004, the Barker Review of Housing Supply called on the industry to increase levels of consumer satisfaction and develop a code of conduct for new-house sales. It called on the OFT to conduct a review of the market if progress was unsatisfactory or if customer satisfaction levels did not rise substantially in the next three years.
6. The Royal Institute for British Architects (RIBA) says that 29% of new developments were ‘poor’ quality, compared with 18 per cent that represented ‘good or very good’ quality Better Homes and Neighbourhood (2007).
7. The Government has proposed a 20 per cent increase in the UK’s house-building programme, with three new million homes by 2020.
8. Under the Sale of Goods Act, goods must:
• be of satisfactory quality;
• be reasonably fit for the particular purpose for which they are bought; and
• correspond with their description.
The ways in which people purchase goods and services are increasingly diverse, and consumer protection legislation has not always matched the pace of this change. Gaps and loopholes often emerge in laws that were designed in response to a specific problem, rather than with an eye to emerging issues and future-proofing against innovative rogue traders. The NCC is working to ensure that the laws that protect UK consumers take account of developing technology and changing marketplaces.
Much UK legislation follows on from EU Regulations and Directives, and many of the wider policy issues of concern to the NCC are determined at EU level. UK consumer law is enforced nationally by the Office of Fair Trading, and locally by Trading Standards departments.
The NCC takes every opportunity to engage at domestic and EU levels, influencing key policies at the earliest possible opportunity on behalf of UK consumers
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