Navigating the Fifth Edition of the Consumer Code for Home Builders

If you're a homebuilder or a new home sales agent, understanding and complying with the updates made to the Fifth Edition of the Consumer Code for Home Builders (the Code) is crucial.  

The Consumer Code for Home Builders has been revised in order to make the homebuying process fairer and more transparent for consumers, while helping the industry improve the quality of the homes they build and service they provide.

Though many of the changes made are an enhancement upon existing requirements in the Code’s Fourth Edition, there have also been some additions, including:

• A new 14 day cooling-off period for customers, from the date of reservation

• A new pre-inspection requirement that enables new home buyers to identify any snags so that they can be repaired before the date of completion

• More in-depth guidance on the handling of complaints

• An increase in the amount homebuyers can claim through the Independent Dispute Resolution Scheme

It may involve some extra work now, but the reassurance that your Code compliance will provide for consumers will ultimately help you gain their confidence and succeed in selling more homes, and also avoid punishment for non-compliance.

As providers of written content for homebuilders, and with the Fifth Edition of the Code coming into force on 1st January 2024, we’ve put together a concise checklist, working as a handy guide to help you ensure that all the new information you’re supplying for your customers is Code compliant.

1.      Code Compliance

Applicable to new homes covered by NHBC, Premier Guarantee, LABC Warranty, or Checkmate warranty, your company or selling agents must comply with the Fifth Edition of the Code and make the Code visible to consumers in various forms, including:

• Make the Code easily accessible on your website and through any software applications you use or offer for your customers

• Display the Code Scheme Logo prominently in all of your sales materials and brochures

• Train all sales staff on their revised responsibilities under the new Code

• Review your sales and advertising material for clarity, truthfulness, and compliance with all relevant legislation

2.      Pre-contract Information

The next step is to ensure key information is available for all potential homebuyers, including:

• A written Reservation Agreement compliant with the Code, including details of the new 14 day cooling-off period, from the date of reservation

• An explanation of the Home Warranty coverage and all relevant contact details for the warranty provider

• Description of any management services applicable to the new home or its development, along with the estimated costs of those management services

• Details of event fees like transfer fees

3.      Effective Complaint Handling

Under the new Consumer Code for Home Builders, the handling of complaints is an important aspect of your compliance, and stipulates that you must:

• Define a clear and transparent complaints policy and describe that policy to your customers in plain language that is easy to understand

• Provide guidance on how your customers can make a complaint and what they can expect from you in regards to response timelines

• Acknowledge complaints within five working days, and provide detailed responses within 20 working days

• Be open and transparent about customers' right to complain and their available options

• Train all of your customer-facing staff on your particular complaints process, ensuring that they know and understand what is expected of them under the new Code

• Tailor your approach based on the individual needs and circumstances of the complaint

• Resolve complaints promptly, keeping customers informed throughout

• Review your complaints and learn from them, in order to continuously improve your service

 If you require more robust issue reporting processes, Spaciable’s Defect Reporting tool and Notifications feature provide a great way of auditing issues.

4.       Promoting Code Commitment

Once you are compliant with the new Code, it is important to let consumers know that they can expect Code compliant practices from you.  To do this, you should:

• Display the Code logo as a requirement, showcasing your commitment to fair treatment

• Use the Consumer Code for Home Builders and CTSI Approved Code logo to build customer confidence

• Include information on your website about how you support customers with a commitment to the Code

• Share Code explainer videos on your website and social media

• Celebrate staff completing Code training, displaying certificates and sharing updates

• Include the Code in your sales packs to inform homebuyers about available help

5.      Code 2024 Ready

As the Fifth Edition of the Code approaches, you are advised to prepare to become 'Code 2024 ready.'  This will involve:

• Staying informed about updates and promotions for builders to comply with the latest edition

• Engaging in the campaign and sharing your progress on any social media platforms you use

• Using the provided graphics and hashtags to demonstrate your commitment to Code 2024

Finally, by adhering to the Consumer Code for Home Builders, you not only fulfil your legal obligations but also build trust, enhance customer satisfaction, and demonstrate a commitment to fair and transparent business practices.  

As you prepare for the Code's updates in 2024, stay active and advertise your involvement by engaging in the campaign and proudly showcasing your dedication to providing quality homes and excellent customer service.

Please be aware that although this checklist is designed to help you achieve Code compliance, it is not exhaustive and homebuilders should familiarise themselves with the new Code in full.