A new homes selling code for builders which last week received the backing of the Chartered Trading Standards Institute has so far signed up just one major homes builder.

The Consumer Code for New Homes (CCNH), which launched at a glitzy event last week with and which also has the backing of the Council of Mortgage Lenders, promises to introduce higher standards for the marketing, selling and purchasing of new homes.

CCNH is one of half a dozen ‘codes’ launched with similar aims, in response to the 2004 Kate Barker report about the failings of the UK new homes industry. It highlighted low levels of customer satisfaction among buyers.

Rival organisation the Consumer Code for House Builder was set up in 2010 and does not have the backing of the Chartered Trading Standards Institute but is linked more closely to NHBC and, it claims, is the largest with a market share of 95%.

New homes selling code

So far 50-plus building firms have signed up to the new code, which then automatically covers any agents selling properties on behalf of a member house builder.

“Developers are responsible for ensuring all employees, temporary staff and agents that are engaged in the marketing, selling and after sales of new homes on behalf of the developer comply with the Code requirements,” a spokesperson said.

“But to be clear it is the developer who is the member, not the estate agent.

“Whether a developer has an on-site sales office or uses an agent to market their new homes is explored as part of the Code compliance monitoring and will be recorded on internal audit records per development.”

The full list includes mostly specialist and small and medium-size independent developers, with only Taylor Wimpey West London the only significant names on the list .

The code, which is voluntary, asks developers and agents to sign up to a new set of guidelines and, if these are found to have been breached, the companies can be suspended or removed from the registered members list and in the most serious cases, a fine of a ‘minor nature’ levied.

A dispute resolution system will also be offered to developer, their sales agents and buyers.

Agents selling homes on behalf of developers will therefore be exposed to the same financial penalties should a dispute not go their way following an adjudicator’s decision.

Awards can reach up to 25% of a new home’s sale price but not exceed £50,000, but awards for distress or convenience cannot go over £1,000. The rival code is limited to awards of £15,000.

Down the full code PDF here.