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Gloucestershire Business News

REVEALED: Fears of shoddy new builds denting market confidence

Latest research from a governing body in construction reveals the shocking extent of consumer doubt over buying new homes - with almost six in ten buyers preferring to acquire older property.

The Chartered Institute of Building (CIOB) says that a large proportion of people would not buy a newly built property for fear of concerns over quality.

The CIOB report "New Build Housing: How regulation can improve the consumer journey" lays bare public perceptions of new build homes while explaining the standards housebuilders must adhere to - as well as where to turn to when they're not.

The survey quizzed 2,000 UK adults on their preferences and found:

● 55% believe older homes are of better quality than newbuilds

● Just 21% think new builds are better and

● 32% described new-build housing as 'poor-quality'.

The CIOB report includes a consumer guide for new build buyers which maps out their protections and helps identify issues.

David Parry, the CIOB's author of the report, said: "Our research shows the majority view of new build homes is that they're of low quality and this puts many people off from considering buying one," said Parry.

Amid a housing crisis, where choice of homes can be limited, it's vital consumers understand instances of poor-quality new builds are less common and have an awareness of the measures in place to hold housebuilders to account if they do experience problems, he added.

While stressing that the overall quality of new builds has improved in recent years, the body recommend prospective buyers enlists a professional snagging company to identify defects, many of which "aren't visible to the untrained eye", which can then be flagged to the developer for resolution.

Mr Parry added: "The reality is that quality has improved, and new builds are for example generally much more energy efficient than older homes as must adhere to more stringent regulations such as the Future Homes Standard, so have lots of positives."

He said: "Our report is designed to provide consumers with reassurance that the majority of housebuilders are signed up to a very clearly defined and high set of standards while, for those who do encounter issues, there is an ombudsman to intervene if a housebuilder fails to meet those standards and doesn't resolve problems adequately."

Further report findings include an identified lack of trust in housebuilders to build new homes to a high standard with around 33% of respondents indicating they have a 'low level of trust' and 63% saying they are very or somewhat concerned about potential issues with new build housing.

Housebuilders now have a leading role to play in rebuilding consumer confidence by better promoting the standards they are committed to and providing buyers with clear information on how they are regulated, the body added.

The report also emphasises the role of the New Homes Ombudsman (NHO), who can investigate issues. Mr Parry added: "According to our survey, only 13% of people would go to the New Homes Quality Board if they had a problem with a new build home. For those who have purchased one in the last year, that figure went up a fraction to 18% so clearly awareness of the body is very low, despite most buyers being given information about them during the purchase process. A wider consumer awareness campaign would be a sensible way to increase awareness and give prospective buyers the confidence to consider a newly built property."

● The New Homes Quality Board (NHQB) is an independent body formed by Government in 2021 to ensure consistently high standards of quality and service are met by housebuilders. Currently registration with the NHQB is not mandatory, although around 80% are registered and the number is increasing all the time. CIOB is calling on Government to undertake a review of the NHQB to understand whether registration should now become mandatory for all housebuilders.

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