Consumer Code for New Homes welcomes the support of other Warranty Bodies and invites applications from other industry bodies to join us as Code Users. We have obtained Stage 2 Approval from Chartered Trading Standards Institute which means we now operate an Approved Code and have already developed many of the systems, processes and documents that you will need in order to maintain CML compliance.
In order to make the process as transparent and fair as possible, we have outlined the key qualifying criteria which each company will be expected to meet in order to become a Code User.
We do not expect every Warranty Body to operate in the same way and therefore the criteria are not intended to be prescriptive.
The aim of the Consumer Code for New Homes is to provide support and protection to consumers purchasing new build homes in the UK, so if you do not quite meet the criteria below, please provide us with additional information on how you believe your different approach offers a similar (or better) level of protection to consumers.
Reducing consumer detriment is important, so if you can demonstrate your approach maintains protection for the consumer, we can be pragmatic in our assessment of your application.
In order to become a Code User, please complete the Code User Application Form, providing detail on how you meet the key qualifying criteria. Make sure you provide us with enough supporting information to explain your policies, operational processes and corporate objectives.
Follow the guidance provided in the Code User Application Guidance to ensure you have everything you need and for details of where to submit your application.
The following criteria are set out to provide a framework of qualification for potential new Code Users of the Consumer Code for New Homes. They are not intended to be prescriptive and where an applicant does not meet the criteria, if they can demonstrate an alternative approach which offers no less protection to the consumer, it will be openly and objectively considered by the Code Sponsor.
In order to meet the Qualifying Criteria to become a Code User of the Consumer Code for New Homes, the applicant should:
Operate in the New Build Warranty Sector, providing cover for structural defects to buyers of new homes.
Be authorised and regulated by the Financial Conduct Authority, work with an underwriter / insurer which is authorised by the Prudential Regulatory Authority and authorised & regulated by the Financial Conduct Authority, and is covered by the Financial Services Compensation Scheme.
Be a properly constituted company and have sufficient funds to fulfil its obligations as a Code User and have a good credit rating.
Maintain a register of Developers & Builders, which involves pre-admittance vetting procedures and employ monitoring and sanction procedures for any Developers or Builders who fail to comply with the Technical Standards and/or your requirements.
Operate Technical Standards for the design and construction of new homes that follow industry good practice and requires the Developer/Builder to comply with UK Building Regulations.
Operate a comprehensive system of inspections during the construction process, assessing the quality of construction against the Technical Standards and carry out a minimum of 4 (per unit) on-site inspections during the construction phase.
Carry out a final physical inspection of every New Home that satisfies the requirements of the Council of Mortgage Lenders, and ensure all issues are recorded and actioned prior to the issuing of the Structural Warranty.
Operate a consumer complaints process that complies with the Consumer Code for New Homes and agree to abide by the rules of the Code’s independent Dispute Resolution Scheme.
Commit to upholding the requirements of the Consumer Code for New Homes including monitoring of Code Members and applying disciplinary sanctions as required.
Agree to support the Code Sponsor (Consumer Code for New Homes Ltd) and to comply with all CCNH requests for Code related information relating to the administration of the Code, including complaint investigation, monitoring of compliance audits and performance indicator data.
If you have any queries relating to becoming a Code User or about Consumer Code for New Homes, please don’t hesitate to contact us with the details below:
Contact: Sarah Langley, General Manager
T: 0333 900 1966