Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, what assessment her Department has made of the adequacy of consumer protections for purchasers of new-build homes where a developer becomes insolvent before completing associated infrastructure works.

The government recognises the importance of strong consumer protections for purchasers of new-build homes. That is why the Building Safety Act 2022 created a power to require, for the first time, that all new-build homes are sold with a new-build warranty. The government is considering how best to implement this power.

Where a developer becomes insolvent before completion of a new-build home, we recognise that this can create difficulties for purchasers, as developments can be left incomplete and the developer’s insolvency can make obtaining financial redress more challenging.

Where insolvencies occur, we expect local authorities to work proactively with administrators to find new developers willing to take sites forward and deliver new homes alongside the associated infrastructure.