New Build Buyers put of over poor quality & interest rate

Dec 2023

New build buyers quality concerns were met by housebuilders called the New Homes Quality Board, but registration is not required by law.

New Build Buyers & National Home Federation

New build buyers & The National Federation of Builders, which represents developers, said that while there were failures by some firms, a “perverse situation” had been created “where rather than exploring how we keep standards high, many, especially MPs, only focus on the bad and look to reinvent the process”. The trade body added that builders also faced “new, costly and unfair regulation, extra taxes to fix others failures”, which made business difficult. But the government said legislation gave the housebuilding industry “a clear framework to deliver more, higher quality and safer homes”.

New Build Buyer Nightmare Home

Snagging checks ‘My worst nightmare’ Diane Jackson paid £315,000 for her new four-bedroom, detached house in Darwen, Lancashire, in April. But 10 days after getting the keys, she discovered damp along with a bug infestation. The 61-year-old says she has not been able to move into the property and is having to pay the mortgage as well as rent on her current home. She told the BBC that she paid for four independent reports into her home. They found problems with cavity walls as well as “plaster beetle”, which occurs in damp conditions.

new build buyer wet brickwork

Diane Jackson found plaster beetle in her new home Ms Jackson said the developer Applethwaite Homes paid £2,700 to have a heat treatment on the property, which she said did not work and was still waiting for problems to be fixed. She said she would “hate for anyone else to have to go through what I’ve been through”. “I wanted to show my family my new home and be proud. Instead I’m embarrassed. They’ve (the developers) treated us so unfairly. It’s been my worst nightmare,” she added. A spokesperson for Applethwaite Homes did not comment on Ms Jackson’s claims about the state of her home, but said it took “great pride in creating high-quality homes”. “We go out of our way to meet our customers’ expectations and help them settle into their new homes,

CIOB reported low new build owner trust

A recent report highlights growing concerns regarding construction standards, significantly dissuading potential buyers from investing in new-build homes. According to the Chartered Institute of Building (CIOB), more than half of surveyed individuals believe older houses surpass new-builds in quality. Despite assertions by housebuilders of improved quality, there exists a pervasive lack of trust in their capabilities.

While acknowledging that most homes are built to high standards, the National Federation of Builders admits that failures by certain high-profile companies have tarnished overall perceptions. Interestingly, these setbacks haven’t significantly impacted the sales of the most reputable builders. The housing shortage in the UK has led to soaring property prices over the years due to rising demand.

The government’s failure to meet its target of constructing 300,000 new homes annually in England, alongside a record low in planning permissions for new houses and conversions, further exacerbates the situation. Addressing this, the CIOB stresses the need for housebuilders to intensify efforts in showcasing quality to potential buyers, aiming to alter negative perceptions prevalent in the market.

A CIOB-commissioned survey of 2,000 adults revealed striking sentiments: 55% considered older homes superior in quality compared to 21% favoring new-builds. Additionally, nearly one-third described new-build housing as “poor quality.” Alarmingly, 33% of respondents expressed a low level of trust in housebuilders’ capacity to construct high-standard new homes.

David Parry, the report’s author, emphasized the disconnect between public perception and reality. He highlighted the considerable improvements in energy efficiency in new builds compared to older homes, emphasizing their adherence to stricter regulations. Parry’s report aims to reassure buyers that the majority of housebuilders uphold a well-defined and rigorous set of standards, despite prevailing negative views on new-build home quality.

The Emergence of New Home Snagging Apps

bank of england 2024 interest rates

The Weight of Higher Interest Rates on Buyers

Economic shifts, particularly the Bank of England’s decision to maintain interest rates at a 15-year high, raise concerns for potential buyers. Elevated rates may amplify monthly payments for mortgage holders and potentially exclude first-time buyers as lending conditions tighten.

5.25% Impact of Higher Interest Rates on Buyers Recent economic shifts, like the Bank of England’s decision to maintain interest rates at a 15-year high, raise concerns for potential buyers. Higher rates could result in increased monthly payments for mortgage holders and potentially price out first-time buyers as lending conditions tighten.

The Chartered Institute of Building’s report reflects a pivotal moment in the housing market. Empowered by snagging apps, homeowners navigate complexities, while industry players grapple with the task of rebuilding buyer trust in new home standards. This evolving landscape will undoubtedly redefine the future of home purchasing and construction.