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Developer Registration Urged by Housing Ombudsman for Homeowner Protection

Homebuyers should be guaranteed protection by the scheme when purchasing a new property, insists the group, with a focus on compulsory participation by developers, especially smaller and medium-sized enterprises.

Developers Should Be Compelled to Register for Homeowner Protection, Says Housing Advocate
Developers Should Be Compelled to Register for Homeowner Protection, Says Housing Advocate

Developer Registration Urged by Housing Ombudsman for Homeowner Protection

The New Homes Ombudsman service, launched in 2022, has seen significant growth over the past year, with 90 developer groups now registered, up from just 33 at the beginning of the year. This independent body, aimed at helping consumers buying newly built homes, provides a dispute resolution service for homeowners with issues related to their newly purchased homes.

Currently, around 50% of new homeowners benefit from the New Homes Ombudsman service. However, the aim is to expand this number to 70% as more developers complete their registrations. The majority of the developers currently covered under the scheme are larger ones, but an anticipated increase in coverage is expected to be around 65-70%, once all developers in the process finalise their registrations.

The New Homes Ombudsman service enforces the New Homes Quality Code and has the power to impose penalties on developers who fail to comply with its decisions. The Chair of the New Homes Ombudsman Service, Jodi Berg OBE, stresses the importance of ensuring all developers join the Ombudsman service to provide equal protection against poor-quality new housing.

The Government's ambitious house building plans are seen as essential for ensuring all developers join the New Homes Ombudsman Service. The service is free for homeowners, and it can be a valuable resource for those experiencing issues with their newly built homes.

However, it's important to note that small and medium-sized housebuilders in England, Scotland, and Wales who have not yet been members of the New Homes Ombudsman scheme are not explicitly listed in the provided search results. This means that some homeowners may not be protected by the scheme, and failure of developers to register could leave homeowners without anyone to turn to for help.

The New Homes Ombudsman's Annual report for 2024 emphasizes the importance of requiring all developers, particularly small- and medium-sized ones, to sign up for the scheme. As of March 2024, 91 more developer groups are working towards meeting the scheme's requirements and are expected to complete their registration by the end of the current year.

Jodi Berg OBE, Chair of the New Homes Ombudsman Service, has reported a year of steady growth in the number of referrals and completed reviews. The service's expansion is a positive step towards ensuring that more homeowners have access to a fair and impartial dispute resolution service when issues arise with their newly purchased homes.

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