The New Homes Quality Code 2026: Guide for Conveyancers and Buyers
On 2 March 2026, the New Homes Quality Board (NHQB) published Version 2 of the New Homes Quality Code. This is the first update since the Code was originally introduced, and it applies to anyone who reserves a home from a registered developer on or after that date. If you reserved before 2 March 2026, the original version of the Code continues to apply to you.
The NHQB has said that the Code will be updated every three years, which means this first revision sets an important direction of travel for the housebuilding industry. The changes are wide ranging, covering everything from how homes are marketed and priced through to inspections before completion and the support buyers receive after they move in. Crucially, the language of the Code has also hardened. All references to what developers "should" do have been replaced with "must", signalling a much tougher stance on compliance.
Nearly 60% of new homes currently being built in England, Scotland and Wales are covered by the Code, which means these changes will affect a very large number of buyers and transactions.
What is changing for buyers?
Clearer and more honest marketing
One of the most significant areas of change relates to the information developers must provide to buyers from the very outset. Developers are now required to include all material information that could influence a purchasing decision in their initial marketing. This means that important details cannot be drip fed later in the process.
The information that must be provided upfront now includes property costs such as council tax, ground rent and service charges; utility arrangements including whether the home has gas and what the broadband position is; practical details such as the house type and parking arrangements; any rights, restrictions or easements affecting the property; construction details including whether cladding has been used; and any known material risks such as flooding, coastal erosion or mining.
This information must be made available across all key marketing channels, including online portals, printed and digital brochures, and any automated property feeds.
The Code has also been updated to address the use of AI generated and digitally altered content. Developers are now restricted from using edited photography, video or computer generated imagery that could be considered misleading. This is a recognition that the way homes are marketed has evolved rapidly, and that buyers need to be able to trust what they see.
An end to high pressure sales tactics
The updated Code introduces stronger protections against unfair sales practices. Where a developer makes a time sensitive offer or incentive, buyers must now be given a minimum of seven days to consider it, and this period must be honoured even if it extends beyond the developer's own incentive deadline. Buyers must also be clearly told that the property will remain on the market during this consideration period and could be reserved or sold by another purchaser.
Drip pricing, where the headline price is shown initially and additional mandatory costs are revealed only later in the process, is now banned. All costs that a buyer would reasonably expect to pay must be included in the headline price from the start.
Developers must also disclose any commissions or fees they receive for referring buyers to solicitors, financial advisers or other professionals. This is particularly important because many buyers, especially first time buyers, may not realise that the solicitor or broker recommended by the developer is not necessarily independent.
A more realistic picture of affordability
The affordability schedule that developers must provide has been reduced from a ten year projection to a five year projection. While that might sound like a reduction, the intention is to make the information more meaningful and reliable. Developers must now provide estimated ownership and maintenance costs for the first five years after completion, giving buyers a clearer picture of the ongoing financial commitments they are taking on.
Greater flexibility on pre-completion inspections
Under the previous Code, buyers could appoint a suitably qualified professional to carry out a pre-completion inspection on their behalf. The updated Code now also allows buyers to carry out the inspection themselves. This change followed concerns that cost barriers were preventing some buyers from having their home inspected before completion.
Regardless of who carries out the inspection, the standard NHQB Pre-Completion Inspection Checklist must be used. Developers must also make clear to buyers that the inspection process was designed with professionals in mind and is not required to be adapted for unqualified individuals conducting their own inspection.
It remains strongly advisable for buyers to appoint an independent, qualified inspector rather than attempting the inspection themselves. A professional will have the experience to identify issues that a lay person might easily miss, and will provide a report that carries more weight if problems need to be raised with the developer.
Better aftercare once you move in
Developers are now required to provide buyers with a Schedule of Incomplete Work, setting out what works around the development remain to be completed and the best available timescales for finishing them. This addresses a common frustration among new build buyers who move in only to find ongoing construction activity around them with no clear indication of when it will end.
The Code also now makes explicit that if a buyer needs to be moved out of their home temporarily to allow remedial works to take place, the developer must pay for the cost of alternative accommodation.
Recognition that buying a home is unfamiliar territory
The updated Code includes new wording under its section on vulnerable customers, recognising that buying a home is a rare event for most people. Not all buyers will be familiar with the purchase process or the issues that can arise. This serves as a reminder to developers that they should not assume a level of knowledge or sophistication on the part of their customers, and should ensure their processes are accessible and clearly explained.
What falls outside the Code
The updated Code also clarifies what is not covered. Commercial purchasers, issues that could be dealt with through the structural warranty, claims relating to the tenure and occupancy status of neighbouring properties, and claims for loss of value all fall outside its scope. The exclusion of tenure related claims is noteworthy given the recent increase in disputes involving homes sold near housing association properties.
What can you do if the Code is not followed?
The strengthening of the Code is only meaningful if buyers know what options are available to them when a developer falls short. There are several routes open to you, depending on the nature of the problem and when it arises.
Raise it with the developer first
The starting point is always the developer's own complaints process. All registered developers are required to have a formal complaints procedure in place, and you must use it before you can escalate your complaint further. You should put your complaint in writing, setting out clearly what you believe the developer has done or failed to do, and how it relates to the requirements of the Code. Keep copies of everything.
The developer has specific timescales within which it must respond to your complaint. If you do not receive a response, or if the response does not resolve the issue, that in itself may amount to a further breach of the Code.
Refer the matter to the New Homes Ombudsman Service
If you have raised your complaint with the developer and it has not been resolved to your satisfaction, you can refer it to the New Homes Ombudsman Service (NHOS). This is a free and independent service, funded by developers' registration fees rather than by buyers.
You can refer your complaint to the NHOS once you have received a final closure letter from the developer, or if 56 days have passed since you first submitted your complaint to the developer and it remains unresolved. Your complaint must be submitted to the NHOS within 12 months of the developer's final closure letter, if one was issued.
The NHOS will assess whether the developer has breached the Code. If the complaint is upheld, the Ombudsman can require the developer to take a range of actions, including issuing an apology and providing an explanation of what went wrong; carrying out outstanding remedial works or making good defects; and making financial payments for losses suffered or for stress and inconvenience caused, up to a maximum of £75,000.
The Ombudsman's decision is binding on the developer. Since the service launched, over 70% of resolved cases have been found in the buyer's favour, and more than 98% of cases have been concluded within three months.
It is important to understand that the NHOS covers complaints arising within the first two years from your reservation date or completion date, whichever is later. The complaint must relate to something that falls within the scope of the Code, so issues that are purely structural and covered by the warranty provider, or claims for loss of value, would need to be pursued through other routes.
The NHQB Discipline and Sanctions Committee
Beyond individual complaints, the NHQB operates a Discipline and Sanctions Committee that can investigate whether a developer has breached the Code or failed to comply with a decision of the Ombudsman. The sanctions available to the Committee range from requiring the developer to retrain its staff, through to financial penalties, and in the most serious cases, removal from the Register of Developers entirely.
While individual buyers do not refer matters to this Committee directly, your complaint to the NHOS can contribute to the evidence of a pattern of non-compliance that triggers a referral. Removal from the Register would mean the developer can no longer display the NHQB logo or benefit from the credibility that comes with registration, which represents a significant commercial and reputational consequence.
Your structural warranty
Most new build homes come with a ten year structural warranty, typically provided by the NHBC or a similar provider. During the first two years after completion, the warranty generally provides enhanced cover, and the developer is usually responsible for putting right defects that arise during this period. After the first two years, the warranty provider's insurance cover applies to defined types of structural defect.
The warranty is separate from the Code, and some issues, particularly those relating to structural integrity or building standards, may need to be pursued through the warranty provider rather than or in addition to the NHOS. Your conveyancer should explain what your warranty covers and how to make a claim under it.
Consumer protection law
The Code does not exist in isolation. The marketing and sales practices of developers are also subject to general consumer protection law, and the updated Code has been aligned with the requirements of the Digital Markets, Competition and Consumers Act 2024 (DMCCA). This legislation, which came into force in April 2025, bans unfair commercial practices, including misleading omissions and drip pricing, and gives the Competition and Markets Authority (CMA) direct enforcement powers, including the ability to impose fines of up to 10% of a business's global turnover for serious breaches.
If a developer has engaged in misleading marketing, failed to disclose material information, or used aggressive or high pressure sales practices, these may amount to breaches of consumer protection law as well as breaches of the Code. Buyers who have suffered loss as a result of unfair commercial practices may have the right to seek a remedy through the courts, and can also report the conduct to Trading Standards or the CMA.
This is a significant development. The combination of the Code and the DMCCA means that developers face scrutiny from multiple directions, and buyers have both industry specific and statutory routes available to them.
Taking legal action
If the matter cannot be resolved through the developer's complaints process, the NHOS, or the warranty provider, buyers retain the right to pursue a claim through the courts. This might be appropriate where the losses exceed the £75,000 cap on Ombudsman awards, where the issue falls outside the scope of the Code or the warranty, or where the dispute involves a breach of contract, negligence, or misrepresentation.
Legal action should generally be treated as a last resort, given the cost, time and uncertainty involved. However, it is important that buyers are aware the option exists and that using the NHOS does not prevent them from taking court proceedings if the Ombudsman's process does not resolve the matter or does not fully address the losses suffered. You should take legal advice before commencing proceedings.
The right to cancel in certain circumstances
It is also worth noting that the Code provides for specific cancellation rights. If the developer makes a major change to the home, defined in the updated Code as something that would reasonably be considered as significantly and substantially affecting the size, appearance or value of the property including the internal layout, and the change is one for which the developer is not responsible, the buyer has the right to terminate the reservation agreement or contract and receive a full refund of the reservation fee, contract deposit and any other prepayments, provided the buyer exercises that right within 14 days of being notified of the change.
All reservation agreements must also include a cooling off period of at least 14 days from the date of reservation, during which the buyer can cancel for any reason and receive a refund of the reservation fee.
What conveyancers should be doing when acting on a new build purchase
The updated Code creates both new expectations and new opportunities for conveyancers acting for buyers of new build homes. Much of the information that developers are now required to provide at an early stage is directly relevant to the legal work involved in the transaction, and conveyancers should be using it to provide better informed advice to their clients.
Check whether the developer is registered with the NHQB
The starting point is to confirm whether the developer is a registered developer with the NHQB. You can check this on the NHQB's Register of Developers. If the developer is registered, the Code applies and your client has access to the New Homes Ombudsman Service for a period of two years from reservation or completion. If the developer is not registered, your client will not have these protections and you should make this absolutely clear to them, explaining what that means in practice and what alternative protections, if any, may be available through other consumer codes or warranty providers.
Verify that marketing and pricing obligations have been met
The Code now requires developers to provide comprehensive information upfront, and conveyancers should be checking whether this has happened. When you receive the contract pack, cross reference the information provided against what the Code requires. Has the developer disclosed all material costs, including council tax estimates, ground rent, service charges and estate management charges? Is the pricing transparent, with no hidden extras? Have any commissions or referral fees been disclosed? If information is missing or incomplete, raise it as an enquiry and explain to your client why it matters.
Where you identify a potential breach of the Code's requirements, consider whether it also amounts to a breach of the DMCCA's material information obligations. Your client may have both Code based and statutory remedies available, and you should advise accordingly.
Scrutinise the affordability schedule
Developers must now provide a five year affordability schedule covering estimated ownership and maintenance costs. Review this carefully and discuss it with your client. Does it look realistic? Does it account for service charges, insurance, ground rent, management company costs and likely maintenance obligations? Many buyers focus on the purchase price and mortgage affordability without fully understanding the ongoing costs of ownership, particularly on developments with communal areas, private roads or shared amenities. This is an area where conveyancers can add real value.
Advise on pre-completion inspections early
Under the updated Code, buyers can either appoint a qualified professional or carry out the pre-completion inspection themselves. In either case the NHQB's standard checklist must be used. Conveyancers should be raising this with clients at an early stage, explaining the options and strongly recommending the appointment of an independent, qualified inspector. This conversation should not wait until the notice to complete is served. The earlier your client understands the process, the better prepared they will be.
If the inspection identifies issues, make sure these are documented and raised with the developer's solicitors before completion. Where significant defects are identified, consider whether completion should proceed or whether the issues need to be resolved first.
Review the Schedule of Incomplete Work
The developer is now required to provide a Schedule of Incomplete Work detailing what works around the development are still outstanding and the expected timescales for completion. Request this document and review it with your client. Are the timescales realistic? Is the scope of remaining works clearly defined? Does the schedule include landscaping, road adoption, drainage connections and communal facilities? Your client needs to understand what their day to day living environment will look like in the weeks and months after they move in, not just what the finished development will eventually look like.
Consider the alternative accommodation obligations
The Code now explicitly requires developers to pay for alternative accommodation if a buyer needs to vacate their home for remedial works. While you would hope this situation does not arise, conveyancers should be aware of this obligation and, where appropriate, ensure it is reflected in or at least consistent with the terms of the contract.
Explain the complaints and redress framework
One of the most important things a conveyancer can do for a new build client is to explain, at the outset, what their options are if things go wrong. Many buyers complete their purchase without any real understanding of the complaints process, the role of the Ombudsman, or the time limits that apply. Conveyancers should ensure their clients understand the developer's complaints process and the importance of putting complaints in writing; the existence of the NHOS and the two year window within which complaints can be made; the role of the structural warranty and how it differs from the protections offered by the Code; and the potential for statutory remedies under the DMCCA where the developer has engaged in unfair commercial practices.
This is not about alarming clients. It is about ensuring they are properly informed and can act quickly if a problem arises, rather than discovering months later that a time limit has passed.
A draft Client Guide is set our below.
Check the reservation agreement carefully
The reservation agreement remains a critical document in any new build purchase, and the updated Code reinforces the requirements around it. Check that the reservation period is reasonable, that the terms around forfeiture of the reservation fee are fair, and that the agreement reflects the updated Code requirements including the seven day consideration period for time sensitive offers and the 14 day cooling off period.
Keep up to date with the Code
The NHQB has indicated that the Code will be updated every three years, and that audits of developers' systems and procedures will become more common. Conveyancers who regularly act on new build purchases should treat the Code as essential reading, just as they would with changes to legislation or Law Society guidance. Familiarity with the Code will help you identify when a developer is falling short of its obligations, and put you in a stronger position to protect your client.
The bigger picture
The direction of travel is clear. Buyers of new build homes are being given stronger protections, and the expectations on developers are increasing. The shift from "should" to "must" throughout the Code is not just a change of language; it reflects a genuinely tougher regulatory approach. When combined with the enforcement powers now available to the CMA under the DMCCA, the consequences for developers who cut corners or mislead their customers are more serious than they have ever been.
For buyers, the message is encouraging, you are entitled to more information, more time to make decisions, greater transparency on pricing, and better support after you move in. Importantly, you also have meaningful routes to redress if these protections are not respected, from the free Ombudsman service through to statutory remedies and, where necessary, court action.
For conveyancers, the updated Code should prompt a review of your standard processes for new build transactions. The additional information that developers are now required to provide gives you more to work with, and more to check. Taking the time to engage with the Code properly, and to explain the complaints and redress framework to your clients, will improve the service you provide and reduce the risk of problems going unaddressed after completion.
Your Guide to the New Homes Quality Code
Buying a new build home? Here is what the Code means for you and what to do if things go wrong.
What is the New Homes Quality Code?
The New Homes Quality Code is a set of rules that registered developers must follow when selling and building new homes. It is overseen by the New Homes Quality Board (NHQB), an independent body set up to improve standards in the housebuilding industry. The Code was updated on 2 March 2026 and applies to anyone who reserves a home from a registered developer on or after that date.
Not all developers are registered. Before you commit to a purchase, check whether your developer appears on the NHQB's Register of Developers at www.nhqb.org.uk. If they are not registered, the Code does not apply and you will not have access to the New Homes Ombudsman Service. Ask your conveyancer what alternative protections, if any, are in place.
What the Code requires your developer to do
Be upfront with you. Your developer must give you all the important information about the property from the start, including council tax estimates, ground rent, service charges, parking arrangements, utility connections, construction type, and any known risks such as flooding. This information must not be drip fed to you later in the process.
Price honestly. All costs you would reasonably expect to pay must be included in the headline price. Hidden fees added later in the process are not permitted. If the developer receives a commission or fee for recommending a solicitor, financial adviser or other professional to you, they must tell you.
Give you time to decide. If the developer makes a time limited offer or incentive, you must be given at least seven days to consider it. You must also be told that the property will remain on the market during that period.
Show you what you are really buying. Marketing materials, including photographs, video and computer generated images, must not be misleading. The developer must not use digitally altered content that gives a false impression of the property.
Let you inspect the home before completion. You are entitled to a pre-completion inspection using the NHQB's standard checklist. You can appoint a qualified professional to carry this out on your behalf, or you can do it yourself. We strongly recommend using a professional, as they will identify issues you might miss.
Tell you what work is still outstanding. Before completion, the developer must give you a Schedule of Incomplete Work, setting out what remains to be finished on the wider development and when it is expected to be done.
Provide proper aftercare. If you need to move out temporarily so that remedial works can be carried out, the developer must pay for alternative accommodation.
What you can do if the Code is not followed
Step 1: Complain to the developer. Put your complaint in writing, explain what you believe has gone wrong, and keep copies of everything. The developer must have a formal complaints process in place.
Step 2: Go to the New Homes Ombudsman. If the developer does not resolve your complaint, you can refer it to the New Homes Ombudsman Service (NHOS) free of charge. You can do this once 56 days have passed since you first complained, or once the developer has sent you a final response. Your complaint must be within two years of your reservation or completion date, whichever is later, and must be submitted within 12 months of the developer's final response.
What the Ombudsman can do. If your complaint is upheld, the Ombudsman can require the developer to apologise, carry out remedial works, or pay compensation of up to £75,000 for losses, stress or inconvenience. The decision is binding on the developer.
Step 3: Other options. Structural defects may be covered by your ten year new home warranty (usually NHBC or similar), which is separate from the Code. Misleading marketing or unfair sales practices may also breach consumer protection law under the Digital Markets, Competition and Consumers Act 2024, which gives you additional statutory rights. If your losses are significant or fall outside the scope of the Code, you may be able to take legal action through the courts. Take legal advice before doing so.
Your right to cancel. All reservation agreements must include a 14 day cooling off period during which you can cancel for any reason and receive a full refund. If the developer makes a major change to your home that significantly affects its size, appearance or value, you have 14 days from being notified to cancel and receive a full refund of all money paid.
One thing to remember
The Code is there to protect you, but it only works if you know about it. Ask your conveyancer to explain your rights under the Code at the start of the process, not after something has gone wrong. Keep records of everything the developer tells you, and do not be afraid to raise concerns early.
This article is intended as general guidance and does not constitute legal advice. If you are buying a new build home or would like to discuss how these changes affect your practice, please get in touch.
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