New build properties are often bought off-plan with purchasers relying on sales literature, plans, and what is currently built on site. Large sites are usually divided, marketed, and constructed in phases. Construction tends to involve batches of adjacent plots whilst different areas of the development are still pending construction.
This recent case study demonstrates how complaints may arise from homeowners as the composition of a development evolves throughout the phases of construction, even when the developers have acted in accordance with the NHQB Code (the Code).
What was the complaint?
The homeowner moved into their property and had enjoyed a greater degree of privacy and sunlight due to the fact that the adjacent plots had not yet been built.
Once the construction of these properties began, the homeowner found that the adjacent properties behind the boundary of the rear garden were larger and higher than expected, blocking the sunlight from the homeowner’s garden and overlooking their windows. The homeowner felt aggrieved by the construction of these properties, as they were told that there would be garages behind their property, but instead were faced with two-storey properties.
Consequently, the homeowner raised a complaint with the New Homes Ombudsman Service. The complaint was largely based on the alleged misrepresentation made by the developer in relation to the final layout of the development.
Was the homeowner’s complaint upheld?
The complaint was not upheld. It was found that the developer’s conduct was reasonable and that it met the obligations under the Code, for the following reasons:
- the homeowner’s property, as well as the adjacent properties were built in accordance with the site plan, in both size and position;
- even though the homeowner enjoyed a short period of time without any neighbours, during the sale process, the developer did not misrepresent the final layout of the property; and
- the complaint made by the homeowner was dealt with in a timely manner and in accordance with the Code.
Practical tips
In order to mitigate the risk of homeowners making successful complaints regarding alleged misrepresentation, developers should ensure that:
- any statements that the homeowner is relying on prior to reserving and/ or completing the purchase of the property are recorded;
- they are proactive in updating their materials as soon as possible, particularly, where changes to the development are likely to occur;
- any issues with planning are picked up before homes are released for sale (where possible);
- all relevant information is disclosed at reservation and they encourage homebuyers to ensure that they have read and understand the information;
- site plans are marked as indicative only, to account for any potential changes that may occur to the layout of the development; and
- any complaints are addressed promptly and in accordance with their complaints policy and the Code.
Whilst the homeowner’s complaint was not upheld in this case, in the event that a complaint is upheld, the Ombudsman can award up to £75,000 under the Code.
Developers should also remember that homeowners may choose to intimate separate civil proceedings in these types of scenarios. Whilst such claims are likely to be difficult to pursue, homeowners may claim larger amounts against developer as part of their claim/s.
This article was co-authored by Taylor Sawyer and Lucy Benn
