Warranties are failing many who own their own home

BUYING A home is an exciting and ambitious step. To take on a new build can be courageous, particularly if the warranty proves to be of little value.

A key part in securing a sale for a new property is the safeguard offered through a warranty. Builders know that providing such a carrot sets minds at ease. The best known provider is the National House Building Council (NHBC), which protects over 1.6 million homes.

A building warranty is designed to make good any deficiencies. The staff managing such a scheme should inspect construction and related works as it progresses. Founded in 1936, the NHBC initially offered two-year warranties which it extended in the mid 1960s to 10.

It insures its own warranties which come in two phases: correcting failures to build to technical standards in the first 24 months and ensuring defects to structural and weatherproofing parts are remedied for the last eight years.

The NHBC is regulated by the Financial Conduct Authority and authorised by the Prudential Regulation Authority.

Builders who sign up to the ‘Buildmark’ warranty are liable to put defects right but this obligation only runs for two years. After that, the onus is on the homeowner to make a claim.

Many question just how independent an NHBC inspector can be if they are funded by the construction industry which they are meant to be monitoring. If an inspection is not thorough and a dispute arises, a homeowner has to engage a competent specialist to fight their case.

Watch, too, for the high minimum level of £1,500 that the NHBC imposes before it will make a payment. Any costs incurred by the owner below that are out of their pocket.

A totally independent ombudsman in this sector is long overdue. Such an office holder should be empowered to order compensation where defective construction can be shown and the builder has walked away from their responsibilities.