2017

ANNUAL REPORT

Introduction 3

Executive Summary 4

The Home Buying Process 5

Moving In 6

Settling In 6

Warranty 6

Profile Of Respondents 7

Contents

IntroductionThe New Homes Review (NHR) was launched in November 2016 and is an independent annual report on the new home buying experience from the consumer’s perspective.

It publishes findings from the NHR survey which asks the owners of newly built properties for their feedback on the process and quality of their home as well as their overall buying experience.

This is collated into an annual report which can be used to help potential new home buyers with their buying decisions and provide an update on the performance of the home building industry.

Key features of the NHR are:

• It is truly independent and not affiliated to any developers or to an industry body• All new home owners of any new development can participate• The questions on the survey were developed following consultation with developers and consumers, to ensure that they are meaningful and relevant• New build homeowners can choose how they complete the survey – online, by telephone or by post

The NHR itself is undertaken by an independent research agency Zebra Square.

The NHR believe that good service in any industry should be rewarded and excellence in home building should be no different. To provide a reliable guide for potential home buyers and encourage the raising of building standards, NHR has developed an annual rating system based on new home owner customer satisfaction which will be rolled out as the survey gains further traction.

As excellent developers and builders come in all shapes and sizes, the NHR has developed a rating system which is fair for all and split into three tiers dependent on developer / builder size.

The results of the NHR rating are shared with developers and builders registered with the participating warranty providers as a measure of customer satisfaction and to encourage a better home buying experience.

These rating are based on the following questions asked within the survey:

• The condition of your home when you moved in• The standard of finish of your new home• The overall quality of the build• Value for money of your new home• Overall satisfaction• Overall satisfaction with the service provided throughout• Overall satisfaction with the service provided after you moved in

We hope you enjoy the results of this first survey. More information can be found on www.newhomesreview.com

It is widely acknowledged that buying a home is one of the most stressful things that anyone can do. Over time we hope that this survey will help potential new home buyers with their buying decisions, minimising the stress involved and making it a much more enjoyable process.

This is the first of our annual New Homes Review (NHR), which reveals that delays and snags are the biggest issue for consumers when buying a new build home rather than any delays during the build.

So are people satisfied?

Many new home buyers enter into the process with the expectation that things do not always go to plan and these pre-conceptions can impact on how home buyers perceive the process. That does not mean the building industry have got it completely right but overall those consumers buying a new build home are satisfied with the property that they have purchased. This includes both the service they received during the purchase and after they collected the keys.

The NHR independent rating for the new build industry for 2017 is Gold. This means that the average customer satisfaction score for the survey was between 61% and 70%. More details on the rating system can be found on the website www.newhomesreview.com

81 -100% Diamond

71 - 80% Platinum

61 - 70% Gold Overall industry rating: 65%

51 - 60% Silver

41 - 50% Bronze

Upto 40% Unrated

This rating shows that there are improvements that could be made but the sector is not in quite the poor state that some commentators would have you believe. Although the majority of purchasers expressed some form of dissatisfaction about the process, they were satisfied with their new build home itself and:

• Felt that the quality of the build was high• Felt that their home met expectations when they moved in• Felt that their build had been completed on time• Satisfied with the service they received during the sales process• Felt that their new build home represented value for money• Where snags and defects are experienced but resolved quickly they were generally as positive as those who had not experienced any.

Areas for improvement:

• Almost everyone experienced snags or defects which ranged from issues around décor and finish to more serious problems relating to heating and plumbing• There can be a lack of communication from the builder / developer when they are delays or snags and defects and this is unsatisfactory for the home owner • Any delays need to be communicated quickly and realistically so there are not multiple changes to the completion date.

Executive Summary

The Home Buying ProcessIt is always interesting to see why home buyers choose a new build property and to see over time how these trends change. As part of this study, NHR looked at the reasons why people chose a new build, the top eight reasons why ranked in order of importance were:

1. Location2. The design and look of the property3. Close to family and friends4. The price of the property5. Close to work6. The size of the property7. The reputation of the builder8. Number of bedrooms

With our current Government determined to encourage and enable the building of more homes, a new housing agency was established - Homes England. The idea is that Homes England will play a major role in securing land in the areas that people want to live, supporting smaller and more innovative house builders. This is key and as the NHR survey shows, location and design are the most important aspects in the purchasing decision.

This means that builders and developers play a huge role in designing houses that people want to live in and also bring people’s dreams to reality. The NHR survey showed that 57% of people were satisfied with the service that was provided by their builder through the process and that 59% of the properties were completed on time. Given the inclement weather in the UK and issues that arise when undertaking building work, this can be considered as higher than expected, but there is still room for improvement.

Moving In Very few days in someone’s life are as exciting as collecting the keys to a new home. The day is full of emotion and expectation.

The NHR survey asked new home owners if the property was as they had expected when they moved in and 57.7% said that it was, with 59% saying they were satisfied with the condition of the property.

When specifically asked about the standard of the new build home, 57% said that they were satisfied, with 63% of new build home owners satisfied with the overall quality of the build.

63% of the new build home owners that NHR surveyed said that they were satisfied their new home was value for money.

Settling InOnce new home owners have collected their keys and moved into their new build home, 92.6% of those surveyed said that they had experienced snags or defects in their new home. In the main, these snags and defects were resolved in a timely manner, in fact just 24% did not feel that they had been resolved in a timely manner.

There were mixed reviews when new build home owners were asked about the service that was provided after they moved in. In fact, it was split down the middle with 50% unsatisfied, by 33% were completely satisfied. This means that builders and developers need to work on the after sales service, which is often handled by the developer or builder’s head office rather than the on-site team.

WarrantyA structural warranty is an insurance policy designed to protect against defects in new buildings, normally for a period of 10 years after completion.

Given the survey responses that looked at the post sales service received, and the number of people that found themselves with some snags and defects, NHR went on to ask about the warranty or insurance that would cover major defects in the new build home.

New build home owners were asked about the importance of the warranty or insurance when buying the new home, 88% of those surveyed said that it was important.

They were then asked which statement best described them:

• 54% said “I know a little about what is covered by my new build warranty”

• 36% said “I fully understand what is covered by my new build warranty”

• 2% said “I am not at all aware of what is covered by my new build warranty but someone else in my household is”

• 8% said “I am not at all aware of what is covered by my new build warranty”

Profile of Respondents

Age of respondents (years)

Number of people in the home

Between 3 November 2016 and 31 November 2017, 536 homeowners participated in the survey.

Those responding to the NHR survey

were asked if they had bought

a new build or newly converted

home before?

37.3%said yes

3.2%

0.5%2.0%

9.5%

13.0%

12.4% 32.6%

18.2%

19.1%

14.5%

30.8%said it was their first time

31.9%said they had purchased

a house before but not a new build or

converted property

Under 35 35 - 44 45 - 54 55 - 64 65 - 74 75+

1 person 2 people 3 people 4 people 5 people 6+ people

23.0%

52.0%

How the survey worksOwners of new build homes registered for warranties with the NHR’s warranty partners, Premier Guarantee or LABC Warranty are actively invited to participate in the research 3 months after moving into their property. Information is sent out to these consumers via a postcard which explains the project and how to complete a survey. Each new home address has a unique code to complete the survey online via the NHR website. Homeowners can request a telephone survey or a paper copy.

Who is eligible to take part?Purchasers of new homes are eligible to take part.

Any purchasers of a new build home can participate. The survey is not open to those renting a new build property.

New build refers to any residential dwelling (house, apartment, bungalow etc.).

Report terminology• Housebuilder, developer and builder are used to refer to the party responsible for the build of the property.

• New build, property, dwelling and home are used to refer to the respondent’s place of residence.

• Respondent, purchaser, consumer and owner are used to refer to the individual who completed the survey.

For more information on the New Homes Review go online to www.newhomesreview.com or email info@newhomesreview.com

@newhomesreview | info@newhomesreview.co.uk | www.newhomesreview.com