Channel 4 Dispatches: New Build Scandal
This week, we appeared on the Channel 4 Dispatches investigation into the new homes scandal.
July 18, 2019
The investigative programme which aired this week sent an independent snagging expert to assess a brand new house and found 295 faults. Most shockingly around 70% of what was identified on that list was in the inspectors view below the building regulations standard.
Snags included a fire door that did not close, leaking sinks, showers that were not sealed and faulty waste connections, according to the Dispatches investigation.
Help to Buy & Persimmon in the spotlight
The programme was highly critical of the Help to Buy scheme which lets people get their own place with a small deposit because the government stumps up an interest free loan to make getting on the property ladder more affordable.
The developer Persimmon builds 1 in 7 houses for the Help to Buy scheme and on average makes a 30% return for every house it sells. But in this year’s Home Builders Federation report into customer satisfaction, Persimmon was one of the developers awarded the lowest rating of just 3 stars.
In 2018 the CEO took home a £75 million bonus. At the same time the programme identified some customers who say – and could show – that their houses had numerous issues.
Responding to the Dispatches investigation, Persimmon said: “We fully accept that on too many occasions in the past we have fallen short.
“We apologise without reservation to the customers featured in this programme.”
A key issue flagged up in the programme, and one which we have campaigned against for some time, is that in most cases you can’t have the house surveyed before you buy. Most house builder actually block it. You can only get an independent inspection of your house after you have purchased it.
We are campaigning for the mandatory right to inspect the home you are buying before completion. In the meantime, if you have problems with your new build home but are not being listened to? Read our guide on snagging surveys and how they can help.
Hold back cash
We have also been campaigning for the introduction of a snagging retention policy for new build developers. This would involve the home buying holding back a percentage of the final payment for their new home until they are happy with the quality. This would give homeowners time for an independent inspection and give the builder an incentive to fix problems quickly or – ideally – get the build right first time.
Persimmon announced it would introduce a snagging retention, allowing buyers to hold 1.5% amount of the value of their home until defects the owner identified were fixed. We are asking for all builders to do the same, but increase the amount to at least 2.5 – 5%.
We know many people move into a new build home and are happy from day one. But there are too many horror stories. If you would like to tell us your experience please do in the comments below. If you would like dedicated advice, you might want to consider becoming a member.
- Buying a new build home – problems and tips
- Do I need a snagging list for my new build home?
- Home Insurance for new build homes
- How do I choose the best new home builder?
- How to fix problems in your new build home
- Leasehold v Freehold – what’s the difference
- Moving into a new build home
- Our Campaign for Better New Build
- Buying a New Home: Your Rights Explained
- Buying off-plan