The Consumer Code for Home Builders (the Code) is a code of practice for builders of new homes backed by the largest warranty schemes in the UK. Independently assessed by the CTSI Approved Code Scheme (ACS), our Code sets requirements that builders must meet in the marketing, sales and after-sales of new homes, and provides free, independent redress for consumers. The Code applies from the point of reservation through to two years after legal completion.
The Consumer Code for Home Builders has been operating for almost 15 years, covering approximately 10,000 builders of all sizes. It is one of several new homes code schemes, reflecting the scale of the market, providing choice for builders and encouraging continuous improvement in how codes are managed. In most cases, code scheme requirements are aligned so consumers benefit from consistent protection regardless of the code scheme their builder complies with.
Key requirements set by the Consumer Code for Home Builders include:
- clear and truthful advertising and marketing materials;
- sufficient pre-purchase information to enable consumers to make an informed decision about their purchase;
- customer service training for customer-facing staff refreshed annually;
- home warranty information;
- contract information including termination rights;
- timing of construction, completion
and handover; - pre-completion inspection to identify and resolve defects;
- an accessible after-sales service;
- and a complaints process for handling customer complaints.
If a consumer believes the Code has been breached, they can raise a dispute via the Code’s Independent Dispute Resolution Scheme (IDRS) – an alternative dispute resolution scheme run by the Centre for Effective Dispute Resolution. The IDRS is free for consumers with issues that remain unresolved
having been through their builder’s complaints process.
Virtually all new home builders must comply with the Consumer Code for Home Builders or one of the other new homes codes as a condition of their warranty cover. Although the Government has signalled an intention to introduce a single mandatory code and ombudsman scheme, how and when this may be introduced remains unclear. As things currently stand, builders are free to choose which code they comply with, subject to any restrictions set by their warranty provider. Approved code schemes are detailed on the ACS website.
Raising standards
We use the knowledge and expertise gained from compliance assessments and customer disputes to develop best practice guidance for the industry as well as tips and tools for home buyers.
This includes our range of ‘right first time’ factsheets for builders which highlight important learnings from the most common Code breaches as well as our ‘Compliance Pack’, a quick reference guide to Code requirements, guidance, resources and checklists designed to aid compliance.
Guidance on complaints & disputes
In April 2025, we launched a free guide to complaints and disputes for consumers. People don’t generally go into a purchase expecting to raise a complaint and can find themselves unprepared if things do go wrong. Consequently, many consumers struggle to provide evidence to support a claim or may have unrealistic expectations about financial recompense. The complaints and disputes pack explains:
- what information should be included in a complaint;
- the importance of record-keeping and confirming conversations in writing to minimise potential for miscommunication;
- how to raise a dispute via the Code’s IDRS, with step-by-step instructions to help consumers provide relevant information and supporting evidence;
- and a downloadable overview of the different types of support and protection available across the property market.
As well as making the complaints pack available to consumers, we’ve shared it with builders, alongside tips for complaints handling so that everyone has a consistent understanding of what to expect from complaints and disputes.
Most of the disputes raised via the Code’s IDRS relate to the way complaints have been dealt with, which is why we have also issued guidance for builders on how to handle complaints. If builders can respond better when customers first raise a concern, customer experience will improve, builders will enhance their reputation and reduce costs, and both parties will save on the time and stress often involved in pursuing a claim.
Actions speak loudest
Alongside learning and best practice, a robust sanction regime is needed to encourage compliance with codes of practice. The Consumer Code for Home Builders operates an independently chaired ‘Disputes and Sanctions Panel’ to review IDRS decisions and assess what sanctions may need to be applied via the warranty providers where required. This can include additional training, temporary suspension of warranty provision or even expulsion from a warranty provider’s scheme for serious non-compliance.
Most builders comply with IDRS decisions within the set timescale, which is usually 20 working days. However, to tackle the limited occasions where this isn’t the case, we have just introduced a pilot scheme which will see builders charged £5 per calendar day for every day they do not comply with an adjudicator’s decision beyond the agreed timeframe. The charge will be payable to the home buyer in recognition of the considerable frustration extra delays can cause them.
Making codes count
Codes of practice like the Consumer Code for Home Builders play a huge role in supporting consumers and reducing the likelihood of detriment by setting and monitoring requirements and providing redress. In our experience, the companies that engage with codes of practice are usually keen to deliver a great service and value the insights and guidance code bodies can provide.
As well as providing support for consumers, we must ensure that support is accessible and easy to understand, particularly in sectors such as housing where purchases are high value and infrequent, often putting buyers in a more vulnerable position. Providing resources such as our complaints pack and ‘right first time’ factsheets are a great way to help organisations improve and help consumers avoid common pitfalls.
Visit tradingstandards.uk/cppdtest to complete the question and answer section of this module.
