National House Building Council — House of Commons, 2017-10-16
Topic: Housing
Stephen Daniel Double (Conservative, Centre-right): My hon. Friend makes a good point. I was alluding to the fact that in the current system, getting an independent view of the property is worthwhile. Long term, I do not think that that is the answer. We need to get to the point where a house purchaser can be confident in the quality of the housing that they are buying I return to the situation of the couple I have been assisting in my constituency. It transpires that similar defects have emerged on several other houses on the development, adding to the couple’s anxiety and consternation. They said to me that far from being helped by the 10-year warranty company provider, they felt thwarted at every turn. They were sent around in circles and left for months on end with unhelpful responses or, indeed, no response at all. They said that far from working with them to resolve the matter, the warranty company appeared to be in cahoots with the developer. I believe that that is at the heart of the issue that I want to address. The perception is that NHBC has a too cosy relationship with the building companies, and lines are blurred as to precisely who they work for. That cannot be acceptable My own interaction with NHBC has been very unsatisfactory. I first became involved in the case before I was elected in 2015, and I have spent almost three years trying to assist progress, to very little avail—that is, until recently. It is notable that since notice of this debate was published, I have had direct and constructive contact from NHBC’s chief executive, Steve Wood. He phoned me just last week and admitted that my constituents had been let down by the system. He said that he was determined not only to resolve their case, but to ensure that NHBC improved its service. Having spoken to Steve Wood, who has only been in post for three months, I am more hopeful that things may change for the better. However, although that response is welcome, an MP should not have to secure a debate in this House before the NHBC takes some action. New homeowners should be confident of getting the service they are entitled to without the intervention of their Member of Parliament Although I accept that many customers of NHBC will be satisfied with the service they have received, it is clear that far too many are being let down. Therefore, I believe that we need a review of the new homes warranty market. My constituents spoke to me of being thwarted and foiled at every turn, and that has proved to be a startlingly accurate description of the experience of other new homeowners across the country, as has recently been reported in the press One issue that has come to light is that NHBC has close ties with some developers, and that it operates a washout system of premium refunds. Once policies have expired, NHBC pays back to the builders a proportion of the fees paid for the policies—reportedly amounting to tens of millions of pounds—as a reward for, or in recognition of, a low or no-claims record. Between them, they have a vested, incestuous interest that is in conflict with the benefit and welfare of the very people they purport to act for—the homeowners. There is a clear blurring of lines about whom the warranty company actually represents. The builder pays the premium, and if no claims are made, it gets a rebate. No wonder builders do all they can at times to avoid agreeing to a claim.