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

To ask His Majesty's Government, in light of the Ministry of Housing, Communities and Local Government consultation outcome report Single construction regulator prospectus: government response, published on 9 July, whether the minimum standards being considered for new home warranties under section 144 of the Building Safety Act 2022 will include a requirement that a policy's indemnity limit is sufficient to meet the full reinstatement cost of the building it covers.

The Government recognises the importance of new-build warranties providing effective protection for homeowners.

We expect that warranty providers must ensure that any policy limit is sufficient to meet the full reasonable cost of rectifying covered major defects and restoring affected properties to their pre-defect condition.

We are carefully considering the commencement of the power, created under section 144 of the Building Safety Act, to strengthen warranties, and this position is being kept under review.

In the meantime, where a homeowner is dissatisfied with the service provided, they should follow the warranty provider’s complaints procedure in the first instance. If the matter remains unresolved, they may be able to refer their complaint to the Financial Ombudsman Service.