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What is the Consumer Code for New Homes (CCNH) ?

The Consumer Code for New Homes (CCNH) was launched at the end of November 2017 to try and improve several aspects of the home buying process, including marketing, sales and after-sales services.

The code delivers buyers with clear complaints procedures if they are unhappy after buying a new home from a developer enrolled in the CCNH.

The CCNH covers the pre-purchases stage and will look to make sure that all documentation provided to buyers is fair and easy to understand.

This includes:

  • Making sure that the buyer is given clear information about when the property will be available
  • Explaining how deposits will be protected at exchange of contracts.

The CCNH also covers minimum standards for handover of new properties and the after-sales processes.

There will also be a complaints and disputes procedure which will include an independent dispute resolution service for all complaints made in writing to the housebuilder within two years of the completed purchase date of the new home.

There is however, a one-off fee of £120 to access this service and cover the costs.

It’s important to note that homeowners will only be covered by the CCNH if they have bought or are buying a new-build home from one of the code’s members, so it’s important to check.

The CCNH standards will apply for two years after the date of the purchase, but will not apply to secondhand properties and to new-build homes built by developers that are not registered.

At the time of launching in November the CCNH had just over 50 companies listed.

Head of brand and marketing at the CCHN, Emma Loftus, explained that as a new code that they were still adding to the membership and that the CCNH are confident that membership will grow significantly.

The separate scheme, the Consumer Code for Home Builders has been around for several years (since 2010) and is supported by industry bodies such as the Council of Mortgage Lenders, so it is still to be seen if the new scheme aimed at developers and buyers of new homes will attract all the major builders to sign up.

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