New build warranties ....the complete low down brought to you by our freinds at the Home Owners Alliance (part 1)

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New Build Home Warranties – What they do and don’t cover​

New build warranties are designed to offer buyers peace of mind that any defects in their new build home will be put right. But, while new home warranties typically last 10 years, what’s covered in that period is not as straightforward as you might

Buying a new build home should mean you encounter fewer problems than you would with an older property. Unfortunately that’s not always the case. If you move into a newly built property, you’re going to want reassurance that the developer will fix problems with your new build home that occur. And if the problems happen later or the developer isn’t cooperating, that’s where new build warranties can help.

What is a new build warranty?

A building or structural warranty is essentially an insurance policy for newly built homes. The warranty is taken out by the builder or developer but is in place to protect you, the buyer (and your mortgage lender). The type of warranty typically covers you for defects that arise due to faults in the design, workmanship or materials that remain undiscovered at the time of practical completion on your new build.
These policies are referred to by many different names, including New Home Warranties, New Build Warranties, Structural Warranties, Latent Defects Insurance and Inherent Defects Insurance.

Who provides new build home warranties?

The three most well-known providers of new home warranties are the National House-Building Council (NHBC), Local Authority Building Control Warranty (LABC) and Premier Guarantee. The NHBC warranty is by far the most common, covering 70-80% of the new build market.
All companies that sell new build warranties must sign up to a consumer code, which is there to protect consumers during the sales process and offers a dispute resolution service when things go wrong. The main providers above operate under the Consumer Code for Home Builders. But as of October 2022, some of the big developers have chosen to register their developments with the New Homes Quality Code, a rival scheme. As of February 2023, Barratt, Bellway, Crest Nicholson, Redrow and Taylor Wimpy now adhere to the New Homes Quality Code but still offer NHBC warranties.
To add to consumer confusion, other warranty providers operate their own consumer codes. Build-Zone, for example, adheres to the Code of Conduct for Home Builders and the Federation of Master Builders (FMB)‘s unrated warranty is under the Consumer Code for New Homes (CCNH).

Warranties for self-builders

If you are building your own home you might need to look at specialist new build warranty providers, as NHBC, Premier Guarantee and LABC do not offer products to self-builders. A self-builder should make sure they have an all risk policy or site insurance during the build and a 10-year structural warranty issued on completion.
Self-build Zone is one of the largest providers of site insurance and structural warranties for self-builders. Other providers include Self-Build UK, Build Store and ProAktive. It’s important to arrange your warranty provision before you start on site as you will struggle to find an A rated warranty provider retrospectively.

How long do new build warranties last?

Typically, building warranties for new homes last for 10 years but this can be increased to 12 years in certain cases.