New Homes: Developers, Housebuilders and Management Companies

Natalie Elphicke Excerpts

Wednesday 5th January 2022 Westminster Hall

[Mrs Natalie Elphicke (Dover) (Con)]

It is a pleasure to serve under your chairmanship, Mr Betts, and to speak on this important topic, which is very close to my heart. I draw attention to my entry in the Register of Members’ Financial Interests. In Dover and Deal, as in so many other constituencies, there have been good developments and downright awful developments. That needs to change. There needs to be an end to shoddy homes and poor customer service when buying a new home.

Before I became an MP, I was asked, as an independent expert in this area, to lead the practical work of designing, developing and then implementing major new reforms to provide those better standards and improved consumer redress for new homes. Those reforms consist of a new quasi-regulator, the New Homes Quality Board, which I chair, as set out in my entry in the register. It is a wholly independent, not-for-profit body. Under its constitution, builders and warrantee providers taken together can never form a majority on it. Consumer representation on the board is provided by Citizens Advice, and by an active consumer engagement panel, which is structured into its core design.

The New Homes Quality Board holds a register of developers. There is a new homes ombudsman to provide consumer redress, free to consumers, and a new code to set out much-needed standards and principles for developers, as we have heard today. Indeed, the new code, which it took nearly five years to develop, is so extensive and far-reaching that one major developer has said that its change management programme involves in excess of 40,000 changes to its business.

A full public consultation was carried out on the code, which I hope will go some way to meeting the concerns expressed by right hon. and hon. Members, but there are appalling situations. It may not surprise my hon. Friend the Member for Wantage (David Johnston), given his experience, to hear that in the consultation, only 4% of new home buyers said that they thought that developers met all the fundamental principles set out in the new code, so 96% of industry clearly has more to do.

This is such important work that I am determined to see it through to its final operational launch in the coming weeks before I step back and hand over to my successor. It is, and has always been, cross-party work—indeed, cross-governmental work by the Administrations in England, Scotland, Wales and Northern Ireland. It started with the vital leadership of the all-party parliamentary group for excellence in the built environment. I am delighted that the Minister is present, and is shepherding in these far-reaching reforms through the Building Safety Bill and other measures, as he was the chair of the APPG, which set out the problems and solutions for new homes, including the need for a new homes ombudsman. That was in addition to your vital work, Mr Betts, in leading the Levelling Up, Housing and Communities Committee for many years.

On ensuring that a house is right the first time, the code specifies that a home must be complete. It prevents customers from being paid to move into an incomplete and shoddy home. It may sound absurd, but that was what was happening. People were paid to move into a house of two bathrooms and four bedrooms, say, where only one bathroom was working. Perhaps even the plumbing was not finished. The homeowner would have the job of their life trying to get things fixed after they had moved in and the builder had moved out.

It is also a requirement of the new code that the home meets all building safety, environmental and similar regulations. My hon. Friend the Member for Wantage and my right hon. Friend the Member for Chipping Barnet (Theresa Villiers) are quite right that building green homes and warm homes is central to building good homes. I am sure that the Minister has heard about environmental standards in the context of the upcoming planning reform. I hope that he will also consider the importance of water sustainability to the wider community architecture of cities, towns and villages in reducing and preventing flooding, and promoting better, sustainable water usage.

The establishment of the new building safety regulator is essential, because some of the safety situations for new homes have been shocking—none more so than that faced by my constituents in Sholden, where fire breaks were supposed to be in place but were not. Some of my constituents are still waiting to receive safety certificates, which they need in order to sell their homes, as well as for peace of mind in their home every day.

Finally, the new code requires builders to have an effective and standardised aftercare service. There will be fixed timeframes, as my hon. Friend the Member for Wantage recommended. The backstop to all of that is an independent new homes ombudsman service. Following a competitive, open procurement process over many months, the Dispute Service was chosen as a preferred new homes ombudsman partner. It has an impressive record across the four nations of the UK. All the arrangements will be paid for by the house building industry and access to the new homes ombudsman will be free to consumers. I hope that will begin to make a significant difference as we move forward.

I hope that, in the time available, I have given a flavour of the significant and necessary changes under way. If those changes do not go far enough, the Minister will find himself on a continuing journey with me to press for further change. Change is urgently needed, for home is where the heart is, and a person’s home is their castle.