A New Homes Ombudsman is being introduced by the government’s landmark Building Safety Bill and will be brought to fruition by Natalie Elphicke MP, who is overseeing the appointment of the ombudsman and the creation of a code of practice. As a result, in early 2021 there will be a new sheriff in town to impose new rules on the housing market, offering purchasers a means of redress for problems with new homes.

Given the proposed wide scope of the ombudsman’s remit and the punitive powers available to them – awarding compensation, requiring developers to undertake further work, requesting apologies and explanations – this could have a significant effect on the housing industry. It is interesting to note, for example, that housebuilders will be obliged to be a member of the ombudsman scheme – and that one of the more draconian penalties they could face for poor performance is expulsion from the scheme. Expulsion would therefore make it unlawful for them to engage in the development and selling of new build homes. As the government said during the consultation process, that is a powerful deterrent for non-compliance.

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