What are your rights if your new building is damaged? DEAN DUNHAM on what to do if there is a problem with YOUR property

It must be very alarming for the 360 ​​homeowners of the Barratt development in Cambridgeshire, where 88 almost completed houses are being demolished.

Why does it happen? The foundations were found to be defective and not built to the developer’s ‘usual high standards’.

This in itself will result in months of unrest and misery, but at least the developer is trying to resolve the problem before the property is occupied.

The homeowners already involved in the development say they are ‘deeply concerned’ about the safety and security of their properties, the disruption this will cause and the impact it will have on their finances now and in the future.

Anyone in this position must contact Barratt immediately and ask three initial questions – and you must request and receive answers in writing.

Firstly, is it safe for you to stay in the property; second, what action will Barratt take to rectify the problems, and when; and thirdly, what compensation do you receive?

Barratt has a legal responsibility to tackle this problem because if you buy a new build property you have a ten year warranty.

For the first two years the warranty is provided by the developer – in this case Barratt – and covers structural issues and minor defects (this is often referred to as the ‘developer’s warranty’).

For the remaining eight years, the developer’s warranty is replaced by an insurance-backed warranty, usually provided by the National House Building Council (NHBC).

This only covers structural problems with the home, not cosmetic problems or minor defects such as a missing window handle or a misaligned door.

If Barratt is unable to resolve the issue under the developer’s warranty, your next step is to report the issue to the NHBC, who will hopefully step in and resolve the issue.

If not, your next step is to look up the default code your developer subscribes to. This is now a requirement for developers (consumercode.co.uk).

Barratt has changed the code, so if you reserved your new home before November 1, 2022, the applicable code is the Consumer Code for Homeowners.

If you have reserved your home after this date, this applies to the New Homes Quality Code. In either case, you have the right to use the Code’s complaints resolution mechanism, the decision of which will be binding on Barratt.

However, damages are typically capped at £15,000, so if you think your claim is worth more, you may need to take it to court.

This is the advice I would give to anyone concerned about their legal rights if something goes wrong on a new build property.

I made a down payment on a new-build home, but changed my mind. Can I get my money back?

Most developers state that deposits are non-refundable, meaning if you change your mind, you will lose the deposit.

However, if the goalposts are moved by the builder – for example if the builder changes something such as the construction specification or the date of completion and the change is likely to affect the value of the property – then this is likely to result in the -refundable deposit lapses.

This means that you are legally entitled to your deposit.

That said, you should check the builder’s contract terms carefully as construction completion times are often quoted as estimates only.

If this is the case, the builder has no legal obligation to adhere to the estimate.

This does not mean that it can continue to push back construction dates and the Codes of Standards (usually the Consumer Code for Homeowners and the Quality Code for New Homes) deal with such delays and usually advise buyers that they have the right to cancel their contract and obtain a refund if there is unreasonable delay on the part of the developer.

I buy off-plan and put down a deposit – now the development is almost complete and my house looks nothing like the plans. Can I withdraw or deduct money?

There is a general principle in consumer law that consumers should always get ‘what it says on the tin’ – supported by the Consumer Rights Act 2015, which says: ‘Goods must be as described’.

A new-build house falls within this principle, so if the builder does not deliver the promised house, there is a breach of contract according to the law.

This means that you are entitled to a full refund and possibly compensation if you suffer any damage as a result.

Please note that this is another example where you should check the contract terms carefully.

Builders are notorious for adding numerous exclusions, essentially “get-out clauses,” to cover eventualities such as the need to change a design element of a home. Such clauses should be carefully checked by your lawyer.

My new building has a large number of problems that the developer is taking the time to solve. Can I have them repaired myself and send the bill to the developer?

Developers must resolve problems with new-build homes ‘without unreasonable delay’.

If this does not happen, you have the right to file a complaint, following the steps described above, and claim compensation for the inconvenience.

The Consumer Rights Act also gives you the right to ask a third party to fix the problems, and then claim the costs from the original company, in this case your developer.

I have cracks in the walls of my new building – I moved in six months ago – who can I contact: the developer or my building insurance?

Please direct your complaint to the developer under the Developer Guarantee I referenced above. If the builder does not make the repairs, report the problem to the NHBC.

My new house has a moisture problem and it will cost me a lot to solve it. Is this the responsibility of the developer?

This is covered by the ten-year warranty. Initially you will need to complain to the developer, but if they refuse to help and you discover the problem after the first two years, you will only be covered if the damp is caused by a structural problem with the property.

If this is not the case, you must follow the complaints resolution scheme set out in the Code of Standards to which the developer has subscribed, or take your complaint to court under the Consumer Rights Act.