The UK government has accepted the proposals of the Competition Watchdog to improve quality in the construction of new homes.
After a year of investigation, the Competition and Markets Authority said in February that the housing sector required "significant intervention". They also raised concerns over the quality and safety of some new homes.
The government was asked to simplify what many housebuilders described as a complex system of planning in order for the housing shortage, which is driving up house prices, to be alleviated.
Matthew Pennycook, the housing minister, said that the CMA had highlighted areas of improvement in a way that was appropriate and the government would address the 11 recommendations made by the regulator.
Pennycook stated, "We will empower consumers to challenge developers when they deliver poor-quality new homes or provide bad service."
The updated National Planning Policy Framework, and the reinstatement by councils of housing targets that are mandatory will help ensure that communities have the necessary infrastructure and homes to thrive.
Labour has plans to build 1.5million homes in the UK over the next 5 years.
Nigel Cates commented on the government response to the Competition and Markets Authority's report into the housing market: "We are delighted that the government has committed to requiring all housebuilders join the New Homes Ombudsman and adhere to a single code of quality. This announcement ensures that all buyers of new homes have the same protection and can turn to an Ombudsman Service, regardless of who they are.
We look forward to working closely with the UK government and the devolved authorities to implement the plans in the shortest time possible.
The New Homes Quality Board has welcomed the response of the Government to the Competition and Markets Authority Housebuilding Market Study.
Rob Brighouse is the chair of the New Homes Quality Board. He said, "We are pleased that the government has committed to having one mandatory code of conduct for all homebuilders, and activating the New Homes Ombudsman Service, which will be available for all new home buyers."
This will ensure that all developers have a single framework (the Code) to improve standards of customer service and quality for new homebuyers. This decision, we believe, will create an even playing field for new homebuyers. It offers the same protections and redress options as the New Homes Ombudsman.
We will be working with the government and other stakeholders in the coming weeks and month to put this into action.