New build problems: How to fix them

New homes hold the promise of worry-free home-ownership. Unfortunately, that's not always how it turns out. We take a look at how to fix problems with your new build home.

How common are new build problems?

New build problems are very common. According to the Home Builders Federation National New Homes Customer Satisfaction Survey published in March 2024, a whopping 95% of new build buyers reported problems such as snags and defects to their builder since moving in and a third (33%) reported more than 15 snags.

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Common problems with new build houses

Common new build problems include:

• Unfinished or poor quality plastering and painting
• Faulty brickwork pointing
• Poorly installed loft insulation
• Badly fitted doors and windows

However, these are just some common examples of new build problems. You may find your new build house has a much more extensive list.

Snagging surveys and new build problems

The best way to make sure any new build problems in your home are identified and fixed is to employ a surveyor to undertake a ‘snagging survey’. They’ll make a snagging list of defects which need attention and send copies to you and your builder. The advantage of using a professional firm is that it is likely to spot more defects than homeowners would typically report themselves.

Given the number of complaints and calls for help we get from visitors to our website, we have teamed up with one of the best known snagging inspectors in the UK, New Build Inspections. Unlike many other snagging companies, they never work for developers or builders so can retain their independence. Their prices start from around £300.  At its best, a snagging survey will help apply pressure on a builder to sort out new build problems.

Also, they offer a Standard Plus Survey, which offers a standard snagging survey and you’ll also get a re-inspection to follow up on any remedial work to ensure everything is done to a satisfactory service.

Get in touch with our professional onsite snagging inspectors today

What can you do about new build problems?

If your home is less than 10 years old – even if you are not the first owner – it is almost certainly covered by a new build home warranty. Home builders would struggle to sell a property without a warranty, as mortgage lenders usually insist on this. In 80% of cases this will be the Buildmark policy provided by NHBC. Other policies include Local Authority Building Control (LABC), Premier Guarantee, Checkmate, Buildsafe, Protek and Global.

Most new build warranties work on the same principle to fix new build problems:

• During the first two years, the policy covers most defects, except for wear and tear and minor defects such as plaster drying cracks. During this period, contact your builder directly in the first instance to resolve new build problems. If your builder is no longer in business, contact NHBC or your warranty provider. While it’s advisable to get a snagging survey as soon as you move in, make sure you get it done before the initial two year period expires.
• In years 3-10, the policy will only cover major defects, such as structural or weatherproofing problems. During this period, contact your warranty provider to resolve structural new build home problems.
• From year 11 onwards you will have to rely on your own insurance policy.

You should also be aware that policies, such as the NHBC’s, may not cover all design and construction problems. For these, your only option may be to sue under the builder’s contract.

What if the housebuilder won’t fix the problems?

If your builder does not respond satisfactorily to the new build problems you have identified in your home, your next move should be to escalate your complaint. The process you’ll need to follow depends on which consumer code your new build is covered by. Find out the complaints process for the three main consumer codes in our guide New Homes Ombudsman and consumer codes explained.

You will fare better with your new build home complaint if you:

• Keep records of all communication including copies of all letters, emails etc. Even if your builder is available on site and is generally amenable to face-to-face requests, it is a good idea to correspond by letter or email from time to time to make sure there is a record.
• Demonstrate you have pursued the matter with your developer exhaustively before approaching your warranty-provider (though keep in mind the two and ten year warranty periods).
• Haven’t tried to fix the new build problems yourself, which your new build warranty-provider may consider to have invalidated your warranty.
• Have an independent expert confirming the new build problems, such as a snagging survey inspection report.
• Take an approach of polite persistence.

Can I get new build problems compensation?

Yes, it is possible to get new build compensation in certain circumstances.

For homes covered by the New Homes Quality Code, if a complaint is upheld under the New Homes Ombudsman Service, the maximum amount of compensation is £75,000. However, we have yet to see figures of the average compensation awards.

While for homes covered by the Consumer Code for Home Builders, for homes reserved before 31 December 2023, the maximum award available is £15,000 including VAT; this may include an award of up to £500 for inconvenience. For homes reserved from 1 January 2024, the maximum award available is £50,000, including up to £2,000 for upset and inconvenience. In 2022, the average sum claimed by home buyers was £5233 and the average sum awarded was £626.78. However, these figures don’t reflect the occasions where the home builder was asked to put matters right or undertake further exploratory work.

With homes covered by the Consumer Code for New Homes, the maximum value of any award is 25% of the purchase price up to a maximum of £50,000. For homes reserved before 31 December 2023, the maximum awards for emotional distress and / or inconvenience is £1,000. This limit rises to £2,000 for homes reserved from 1 January 2024. In 2023, the average financial award of cases that closed in favour of the buyer or were settled was £1049.

Get in touch with our professional onsite snagging inspectors today

Other options to get your new build issues resolved

If you don’t receive any satisfaction about your new build issues you could:

• Make a claim about the warranty provider to the Financial Ombudsman Service. This is free, but it could exclude you from being able to make a court claim. The FOS is also not specialised in the area of new homes as it mostly deals with financial services rather than new homes insurance.
• Issue a claim in court – but you will need to be aware of the strict time limits of bringing a court case and will need a lawyer who is specialised in new homes claims.

You may also consider taking direct action others have done in the past such as:

• Contacting the press – though some local newspapers are reliant on advertising from developers and may not want to upset them
• Hanging banners from your home, visible from the sales centre, with such slogans as: “Don’t buy a home here until you have spoken to me”
• Setting up websites and Twitter accounts to advertise the new build problems to potential buyers. You should take great care, however, not to make statements which are libellous and could result in legal action against you. You must stick to the facts. A simple tweet with a photograph of the problem, with a tag saying “still waiting for this to be fixed in my new home”, and naming the developer, could be as effective as anything.

Before pushing the nuclear button, however, you should be aware:

• You could be upsetting your new neighbours and lowering the value of your new home. Content can hang around on the internet for years – even if the new build problems are long resolved

Never fail to apply a common sense test. For small new build home problems, such as badly-painted walls or minor cracks, it might be better to get out a paint brush or some filler and sort out the problem yourself, rather than spend time and energy fighting your builder – even if it leaves you dissatisfied with the service you had expected. 

Better Quality New Build Campaign

Too often, new homes are built to low standards, with small rooms, paper thin walls, inadequate heating and poor quality workmanship, with other new build problems that emerge only after moving in.

Many buyers realise only too late, that while a property is likely to be the most expensive thing they’ll ever buy, it is one of the least-protected by consumer law. With most goods, be it a cabbage or a toaster, you have the right to reject them and demand your money back if they fail to live up to expectations. Property, however, is exempt from the Sale and Supply of Goods Act, with the result home buyers can find themselves stuck with faulty properties.

This is why we’re campaigning for change including the introduction of snagging retention. A snagging retention is a legally binding agreement where new build homebuyers retain a set percentage of the cost of their house until faults are fixed. They would only hand over this amount – which the HomeOwners Alliance believe should be at least 2.5% – six months after they have moved into their new home. Find more in our Better quality new build campaign.