NHBC (National House Building Council) EST 1936 is one of the UK’s leading providers of warranty and insurance for new homes.
If you have purchased a new build home, you should expect the property to have the benefit of a ten-year warranty. In many cases, this would be provided by the NHBC.
From the point of exchange up and until your completion date, NHBC covers the insurance cover against the failure of the developer to complete. This applies only if the developer is at fault for the failed completion and only if the failure is due to insolvency or fraud. You will have the cover of this nature of up to 10% of the purchase price.
After completion and within the first two years of your ownership, the developer is responsible for putting right any building defects which may have derived from any breach of the NHBC standards. Any defects must be reported to the developer in writing.
In the unlikely event that you enter into a dispute with the developer, the NHBC will attempt to resolve any issues. The NHBC will consider anything that is proposed to be defective and establish whether they consider the repair works for the same to be necessary. If they do agree, and the developer is unwilling and/or unable to deal with the same, the NHBC will consider taking full responsibility for the works.
After two years and the remainder of the warranty (total of ten years), NHBC will insure the property against specified types of defects and damage to the structure and below-ground drainage which are a direct result of the builder failing to comply with the NHBC’s technical standard. Some examples are, but not limited to: –
- Foundations;
- Load-bearing parts of the roof;
- Floors;
- Roof coverings;
- Render;
- Flooring;
- Flues.
The warranty may cover the developer’s failure to comply with Building Regulations, the warranty may also provide cover for non-load-bearing partition walls, wet-applied wall plaster and ceilings.
It is very important to review any warranty you receive in detail ensuring that you are acquainted with what you can/cannot claim against the situation should arise. You should visit the developer’s site office to enquire about any maintenance inspection which might take place following completion, this may also be referred to as a “snag test”. This may reveal some minor issues which can be rectified with no requirement to claim under the NHBC warranty. It is important to also note that wear and tear and/or issues which are caused directly by you as the owner or your neglect to upkeep the property in a good condition will not be covered by the warranty.
For further information on anything mentioned in this article, or any other property law query, please contact us.
WBW Solicitors has offices in Axminster, Bovey Tracey, Brixham, Exeter, Exmouth, Honiton, Launceston, Newton Abbot, Paignton, Seaton, Sidmouth, and Torquay.
This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.
