New home buyers 'facing faults and delays'

Posted: 25 Sep 2008 18:01:44 GMT

            Property News - New home buyers 'facing faults and delays'

Many people purchasing new properties are being confronted by faults and delays, it has been warned.

Although the homebuilding sector remains broadly competitive, a new report into the current state of the sector by the Office of Fair Trading (OFT) found that many new home buyers are also facing issues with the terms of their contracts.

As a result of the study, the industry has agreed to develop a new code of conduct that will help to protect consumers by providing them with a channel for redress.

John Fingleton, chief executive of the OFT, said: "Our study gives the homebuilding market a largely clean bill of health, with no evidence that individual homebuilders have the ability to restrict supply in order to inflate prices.

"However we believe that the homebuyer needs more protection when buying a new home, and we have worked hard with the industry to help it develop appropriate self-regulation."

It is hoped that the code of conduct and redress scheme for consumers will be fully operational by March 2010.

However, the Royal Institution of Chartered Surveyors has criticised the report, suggesting that the planning system needs to be overhauled in order to boost house building levels and prevent anti-competitiveness.

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