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Consumer Code - Dispute Resolution Scheme

Justice for new home buyers!Consumer Code 4th Edition with Builder Guidance

Making a claim using the Code's Dispute Resolution Scheme (IDRS)


Consumer Code for Home Builders will cease to be by 2023PLEASE NOTE: From 31 January 2022, house builders will start to register with the New Homes Quality Board [NHQB] during a "transitional period" which ended on 31 December 2022. Once a builder is registered, they must comply with the requirements of the NHQB new Code of Practice which replaces the Consumer Code for Home builders on 1 January 2023. New homebuyers who reserve their new home after 4 October 2022 can make a complaint to the New Homes Ombudsman Service only against the New Homes Quality Board Code of Practice. New Homes Ombudsman Service.


The Consumer Code is therefore now a zombie that doesn’t know it’s dead and is only functional to a diminishing number of eligible buyers until 4 October 2023. It was supposed to provide all new home buyers with an alternative to taking a housebuilder to court. The Consumer Code clearly explains the house builder's responsibilities under the Code and in law, providing a low cost relatively quick, independent dispute resolution scheme. The scheme only applies to complaints made within the first two years from the start date of the home warranty cover and has a maximum claim/award limit of £15,000.


Inconvenience payment

From 1 July 2017, claims for 'inconvenience' can no longer be made by homebuyers! As this was frequently all claimants were often awarded, this change has been made purely to reduce awards against housebuilders.  But also from 1 July 2017, the maximum for 'inconvenience' is being doubled to £500, however, any "awards will be made by the adjudicator at their own discretion and consideration and only where a breach of the Code has been identified." But a homeowner cannot receive an award for "emotional upset and stress, as awards are to be judged as a matter fact and on the resulting financial loss caused." With 4.6 of the guidance stating: "home buyers may not receive an award for inconvenience alone."


Our advice is to claim the full £500 for inconvenience anyway, as it will give you an opportunity to justify it and remind the adjudicator of his option to award it.  


New homebuyers cannot make a claim until 56 days have passed since first raising it with the housebuilder and no later than 12 months after the housebuilder's final response to the original complaint. Claims must be sent with evidence, receipts and until June 2019, a case registration fee of £100 plus vat. (£120) was also required. This could be reclaimed but was not always awarded, even when the claim was successful. From June 2019, it costs nothing for new homebuyers to make a complaint using the Consumer Code for Home Builders' Adjudication Scheme


The dispute resolution scheme is provided by CEDR Ltd (Centre for Effective Dispute Resolution) and is known as the Consumer Code for Home Builders' Adjudication Scheme (CCHBAS). Once a dispute is submitted, a trained adjudicator reviews written submissions from both parties and issues an award based on his or her conclusions. They will determine if a home buyer has a legitimate claim and has suffered financial loss as a result of the home builder failing to comply with the requirements of the Consumer Code.


This Dispute Resolution Scheme (IDRS) is independent of the home warranty providers. Any awards made to buyers under the Consumer Code IDRS, are not under-written or covered under the warranty provider's policies.





The timeline of the process takes a minimum of 12 weeks to complete. It takes up to eight weeks to reach stage 9 where the decision of the IDRS is sent to both buyer and builder.  The buyer then has six weeks to consider the decision. If the outcome requires money to be paid, this must be done within four weeks.


For more information download pdf:




Adjudication Case Studies

As of December 2019, out of the 689 cases brought by buyers since the code was first launched, just 392 (57%) were found in favour of the new homebuyer, although in most cases only 'in part' and most with a minimal financial award. It would appear that a buyer's claims are more likely to succeed if the amount claimed is relatively low such as claiming for refund of reservation fees. In other cases, where amounts claimed were more substantial, the buyer's claims were unsuccessful - often due to a lack of evidence in support of their claim.


In the first 12 reported case summaries to June 2012, house builders were ordered to pay £23,865 (57%) out of a total claimed £41,365 in the six successful cases. Of those dismissed by the adjudicator, house builders were saved a total of £41,450. In the next 13 case summaries to February 2013 only 4 succeeded, with total payments of just £4,180 (20%) out of the total claimed £20,509.  The nine dismissed cases saved house builders around £121,359. In the 2013 case summaries overall, only 10 (45%) succeeded (in part), with total awarded £26,512, again falling short (19%) of the total amount new homebuyers claimed £133,845.


In the 2016 case summaries, the number of successful claims rose to 66 (65% of the total) with house builders ordered to pay £65,108 just 9.3% of the total amount claimed. To end December 2016, those using the Adjudication Scheme have a higher likelihood of success, due to the pressure for the introduction of a New Homes Ombudsman. However, successful claimants are only likely to be awarded on average, around 14% of the amount they claim. Here are pdf spreadsheets detailing case outcomes, awards and Code requirements breached for 2016 and 2017.


It would appear that new home buyers would be well-advised to make audio recordings when asking questions and seeking clarifications in house builder's sales marketing centres. Failing this, everything agreed should be recorded in writing and signed by BOTH the builder's representative and buyer. Buyers should take a copy with them at the time of reservation.


The first 26 Adjudication Case Summaries to February 2013 that have been made public can be seen by clicking on the link. The remainder from January 2013 to December 2019 are below:

Case Summaries to December 2013

Case Summaries to December 2014

Case Summaries to December 2015

Case Summaries to December 2016

Case Summaries to December 2017

Case Summaries to December 2018

Case Summaries to December 2019

Case Summaries to December 2020

Case Summaries to December 2021












The most frequent breaches to Code (requirements) by housebuilders were:

In 20 decisions, 25% of successful cases in 2019 : 7 - 10% in 2018 : 23 - 44% in 2017

18 - 27% in 2016

In 49, decisions, 60% of successful cases in 2019 :  18 - 25% in 2018 : 25 - 48% in 2017

32 - 48% in 2016 and 37% in 2015

In 13 decisions, 16% of successful cases in 2019 : 9 - 13% in 2018 : 9 -17% in 2017

17 -26% in 2016

In 24% of all successful cases in 2015

In 9 decisions, 17% of successful cases in 2017 - 22 decisions, 33% in 2016 and 35% in 2015

In 38 decisions 47% of successful cases in 2019 : 12 - 17% in 2018 : 16 - 31% in 2017

31 - 47% in 2016 and 54% in 2015

In 23 decisions 28% of successful cases in 2019


Our advice:

Download a copy of the Consumer Code and read it BEFORE you discuss anything with sales advisors. Be aware of our Do's and Dont's when buying a new home. Ask plenty of questions and make sure you record the answers given, either by making notes and getting the sales advisor to sign and date them or by making an audio recording. Evidence is essential when using the Code's Dispute Resolution Scheme.


Information and Checklist before claiming compensation using the Adjudication Scheme.

It is worth reading this Code guidance to understand how the adjudication process works and how the awards can be reduced if your evidence is weak. Their page explains the type of things the adjudicator will take into account when assessing any financial remedy and the evidence a home buyer may need to provide.

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Adjudication Outcome

Total

2018

2017

2016

2015

2014

2013

2012

2011

2010

Unsuccessful

344

23

25

20

5

10

9

8

6

0

Succeeded ‘in part’

377

65

47

59

43

21

10

5

6

0

Succeeded in full

245

7

5

7

3

1

0

1

0

1

Withdrawn/Deemed Invalid

107

6

7

8

9

5

3

2

2

2

Case settled before IRDS

128

5

5

8

6

6

0

1

0

0

Other

1

0

0

0

0

0

0

1

0

0

Totals

1196

106

89

102

66

43

22

18

14

3

YEAR

Amount

Claimed

Amount

 Awarded

Percentage

 awarded

Total

£ 7,495,551

£ 728,448

9.70%

2021

£ 1,804,332

£ 144,614

8.00%

2020

£ 1,446,070

£ 105,051

7.20%

2019

£ 1,066,715

£  79,963

7.50%

2018

£  694,540

£  64,984

9.35%

2017

£  555,894

£  77,043

13.80%

2016

£  695,102

£  65,108

9.30%

2015

£  584,514

£   93,456

16.00%

2014

£  304,900

£   48,832

16.00%

2013

£  133,845

£   26,512

20%

2012

£  139,615

£     4,680

3.30%

2011

£    70,024

£   18,205

26%

2010

£      5,000

£     5,000

100%