Any builder who is registered with a warranty provider must abide by the requirements of the Consumer Code for Housebuilders.
Failure to do so can mean withdrawal of warranty registration making the homes they build un-mortgageable - in theory!


However, what does this mean in practice for homebuyers?
Not much. You have access to a fairly quick dispute resolution process. Maximum that can be claimed is £15,000 and you can only claim £250 for inconvenience.
It is not for warranty claims or issues.

House builders are breaching requirement 2.5 right now, by insisting buyers use their selected solicitor.
The NHBC, Consumer Code and Office of Fair Trading are all aware of this yet nothing had been done.
No sanctions and not one house builder has had their warranty registration cancelled….yet!

Even if this did happen would it be a big deal for the national house builders?
Probably not. Each region within the group is a separate limited company and has its own NHBC registration.
So even if one registration was cancelled, the region could juts use the registration of another region and carry on as normal.

The Consumer Code for Housebuilders was a result in new consumer protection legislation.
Consumer Protection from Unfair Trading Regulations 2008 made it a legal requirement to treat consumers fairly.
The Business Protection from Misleading Marketing Regulations 2008 reinforces the legal requirement not to make misleading or false statements.

Breaking these regulations, which nominating a solicitor does, can result in an unlimited fine and up to two years imprisonment on conviction in a Crown Court.
So sales ddvisors and their CEO could face prison.