As the housing sector continues to push ahead strongly, we are seeing the emergence of more and more new homes.  For many people the thought of owning a new home can be a dream come true, the chance to stamp their style and thoughts upon a home, the first to live their, and there is nothing better than the feel of a brand new home.  But are they really as perfect as the house builders would have you believe?

For anyone to buy a new home and not expect their to be some teething problems, would probably be a little nieve, but there seems to be a growing trend in the UK towards increased “snagging” problems.  “Snagging ” is a term introduced by the house building sector to describe some of the those “small” jobs which need touching up or re-aligning after the house has been sold.  Each and every house builder will have a provision for “snagging” issues, although you may need to push hard to get some action as from their point of view the home has been sold, and they already have their money.

A recent survey amongst consumers highlighted the fact that the average new build property in the UK has in excess of 100 “snagging” issues, ranging from slightly inconvenient to major problems.  For those in the UK there is some confidence in the fact that each new build house comes with a 10 year warranty which is provided by either The National House Building Council or Zurich Municipal. 

What is the process for approving a new build, and exactly what kind of cover do these warranties offer?

Under the current system there is no way that a developer can ask you to complete on a new build property prior to the warranty provider carrying out their final check on the property.  It is only after it has been confirmed that the property conforms to the NHBC standards that the warranty can be activated and the sale process completed. While many would expect this to be the end of the story for the new owner, for many it can just be the beginning!

While the system itself sounds very straight forward and appears to offer a great deal of assurance to the home buyer, there have been numerous examples of the NHBC inspectors missing many “snagging” issues, and leaving the buyer to argue the point with the developer at a later date.  A survey by one of the UK’s leading property inspection companies found that on average there were 118 “snagging” issues with each new build, with the number ranging from just 41 to over 300 with some new homes!

While not all “snagging” are serious, as some may relate to decorating, wall paper coming off, or areas of painting which have been missed, there have also been examples of sub-standard plumbing, no electricity and even bathrooms and kitchens not fully installed.  When these types of “snagging” issues are highlighted in the press, it is easy to see why confidence in the system has waned somewhat over the last few years.

Unfortunately the housing development sector is a self-regulating business with NHBC warranties not covered by all of the legal protections associated with traditional insurance policies. It is this element of self-regulation which has caused alarm in many quarters, with many observers calling for changes to the system.  To be fair to the NHBC inspectors, they see their role aligned with more of a structural inspection, rather than the general appearance of a property.  If the foundations are firm , the building is of sound quality and there are no structural issues then there is every chance they may pass the property, even if their are “cosmetic” issues associated with the property.

What legal recourse does the owner have?

Unfortunately as mentioned above, the warranties from the NHBC are not covered by traditional insurance laws because they are actually issued in the name of the builder - enabling them to reclaim the cost of extra “snagging” work on a new build.  This has turned out be a very astute move on behalf of the industry, because the home owners cannot sue for compensation because the warranty is not in their name.  Also, new homes are not covered under the purchase of goods act in the UK - which often leaves the home owner exposed after completing the purchase.

It has to be noted that the NHBC will act on behalf of the home owner where complaints are made and will request that repairs are made by the original developer.  Unfortunately, the phrase “workman like” repairs is used, a phrase which is fair vague, as is the “reasonable time scale” comment often used by the NHBC when advising developers to take the necessary action.

So what options do home owners have?

As the issue of ”snagging” has grown more serious over the last few years, with developers working to tighter and tighter deadlines, and smaller and smaller budgets, many home owners are taking matters into their own hands. 

There are now a variety of services in the UK whereby independent inspectors will come into the property and carry out their own inspection prior to completion of the purchase.  While a small number of developers have not taken this well, often refusing entry (which is within their legal rights prior to completing the sale), the majority seem to appreciate that the buyers have rights as well. 

It has been found that a number of the smaller ”snagging” issues can be resolved almost immediately, and the independent inspectors often have meetings with the NHBC to discuss the latest issues and ways forward for all parties involved.  There is no doubt that while it is in the interests of the buyer, it is also n the interests of the developer to reduce ”snagging” as much as possible - the repairs of which can often take up a lot of time, with possible negative press coverage in some circumstances.

Conclusion

Unfortunately ”snagging” is an issue that has been around for some time, and is unlikely to disappear all together.  Anyone who expects to move into a new build and have no ”snagging” issues will be sorely disappointed.  These are an everyday occurrence in the building industry, although there is room for improvement in the way in which they are handled.

Spending a few hundred pounds to have your own inspection may well offer great peace of mind, and provide you with the ammunition to resolve any ”snagging” issues prior to actually completing the purchase.  It pays to be one step ahead of the developers, and ensure that your interest are looked after.