For many purchasers, the surrounding areas of a plot will be influential in their decision to purchase a property. This NHQB case study highlights how issues can arise where information and verbal assurances provided during the sales process affects a purchaser’s choice and later becomes the subject of complaint.
What was the complaint?
The customer alleged they had been mis‑sold their home because sales staff had assured them that the neighbouring farmland was unsuitable for development and that their views of open countryside would be preserved.
They said these assurances were a key factor in their decision to purchase the property. After completion, they became aware of a potential third‑party development on the adjacent farmland and claimed they would not have proceeded had they known. They also complained about the developer’s handling of their complaint, citing a lack of formality in responses.
Was the homeowner’s complaint upheld?
The mis‑selling element of the complaint was not upheld.
The New Homes Ombudsman Service (NHOS) found no evidence of guarantees regarding future development in the marketing materials, reservation agreement or contract. The contract also made clear that buyers could not rely on verbal assurances.
However, the NHOS found shortcomings in the developer’s complaint handling, noting that responses were not issued in a sufficiently formal or clearly structured manner in accordance with the New Homes Quality Code (the Code).
The homeowner was therefore awarded £100 in compensation, with the developer being directed by the NHOS to review and update its complaints procedures.
Practical tips for developers
In order to mitigate the risk of homeowners making successful complaints regarding misinformation, developers should ensure that:
- sales advisers are fully informed on developments, by way of adequate training and access to correct information to ensure all communications during the sales process are consistent with contractual documentation and marketing materials;
- sales advisers understand the importance of relaying accurate information to purchasers and are reminded to avoid giving verbal assurances about land or matters outside the developer’s ownership or control;
- there is a clear structure in place to deal with any after-sales issues, and this is explained to homeowners; and
- complaint responses are provided in a clear, formal written format that complies with the relevant Code requirements.
Co-authored by Fiona Weatherhead
