A new case study published by the New Homes Ombudsman Service (NHOS) has given developers some guidance on how to approach snagging issues identified at a home demonstration, and whether customers can delay moving into their new home while issues are resolved.
The facts
A customer purchased a new build home. The home demonstration was scheduled for the same day as legal completion. At the home demonstration, the developer acknowledged several issues, particularly with the flooring.
The customer did not wish to move into their new home while there were issues which had not been fully resolved, so they stayed in rented accommodation for a period after completion.
The developer took steps to rectify the issues that had been identified. Some items were subject to delay while replacements were sourced. The customer ultimately moved into the property after work was carried out.
The complaint
The customer complained that because the home demonstration was on the same day as completion, there was no time for the developer to fix any problems in advance of the purchase. They wanted the developer to have fixed all the issues before they moved in, so they had to pay for their rental property for longer than they should have.
The customer also complained that minor paint splatters were left on their furniture following redecoration.
The developer argued that the issues that had been identified were minor in nature and did not necessitate a delay to the customer's moving in date. The developer acknowledged that redecoration had resulted in paint spots on the customer's furniture and offered to rectify the issue with a professional cleaning service.
The Ombudsman's decision
The Ombudsman acknowledged the need to strike an appropriate balance between addressing customer concerns promptly and ensuring that solutions meet quality standards. However, on balance, the developer had acted reasonably in their response to the issues raised by the customer.
The Ombudsman found that the property was at a standard which was complete and liveable by the time of legal completion. The customer could have moved into the house at that stage, notwithstanding that some snagging remained. The delays in resolving some items arose primarily because the developer had offered to replace items which arguably did not need to be replaced. This went beyond their duties under the New Homes Quality Code.
The Ombudsman considered that the action proposed by the developer to rectify the paint splatter was fair and proportionate.
The Ombudsman therefore did not uphold the customer's complaint.
Key takeaways
This decision will be welcomed by developers. It indicates that the New Homes Ombudsman acknowledges that minor snagging issues will often be present at or after legal completion, and developers will not be expected to pay compensation if customers decide to delay moving in until these are resolved.
The case also underlines the fact that developers and customers may have different understandings of which issues impact the liveability or functionality of a property. That was a key finding of market research on snagging carried out by the New Homes Quality Board.
In communicating with customers, developers should be transparent around snagging issues and their impact and severity, as well as the time frames for resolution.
Finally, thorough preparation should be completed before work such as redecoration is carried out. This will include protective measures to mitigate risks to the customer's property or belongings, such as by covering or relocating furniture. If something goes wrong and the customer's property is damaged then developers should propose a sensible solution, such as professional cleaning or repair.
For more guidance on dealing with snagging or any other aspect of the New Homes Quality Code, developers can get in touch with our Real Estate Litigation team or their usual contact in the Brodies Living team.
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