Housing: Construction

Department for Levelling Up, Housing and Communities written question – answered at on 8 February 2024.

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Photo of Mike Amesbury Mike Amesbury Shadow Minister (Levelling Up, Housing, Communities and Local Government)

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make an assessment of the adequacy of home warranty policies in covering the costs of building structural faults.

Photo of Mike Amesbury Mike Amesbury Shadow Minister (Levelling Up, Housing, Communities and Local Government)

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will make an assessment of the adequacy of the regulatory framework for home warranty policies covering the costs of building structural faults.

Photo of Lee Rowley Lee Rowley Minister of State (Minister for Housing)

A new build warranty is issued to protect homeowners from the cost of fixing structural defects caused by faulty materials or poor workmanship during construction. Providers structure warranties acceptable to the circumstances, and it is for developers to determine whether to sell warranties or not. Mortgage providers require new build homes to be sold with a warranty for the buyer to secure a mortgage so in practice most new build homes will be sold with some form of warranty purchased by the developer with the home buyer the beneficiary of the policy. Through the Building Safety Act 2022, the Government has created a power that will allow the Secretary of State to set minimum standards for all new build warranties and penalties for those not complying. The Government is working with the sector to take these changes forward, and will provide more detail in due course.

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