CTSI Statement : Approved Codes are Vital to Ensuring Consumer Protection in Home-Building Sector

Posted 18/09/24

The UK’s home-building landscape can be complex and confusing for consumers and businesses, with several approval and redress schemes operating in the sector. Nevertheless, the industry sits on a foundation of robust and independent consumer protection, says the Chartered Trading Standards Institute (CTSI).  This is important as the new Government looks to increase home-building targets in response to consumer needs. 

Central to that foundation is the Government-backed Approved Code Scheme, which is dedicated to maintaining and improving standards.

Membership of the Approved Code Scheme demonstrates a commitment to customer service and the highest industry standards – and the Scheme already covers around 10,000 building firms.

Consumer protection comes in the form of rigorous vetting and independent approval of  sponsors of the Approved Code Scheme. These sponsors also provide consumers with peace of mind by investigating complaints and offering Alternative Dispute Resolution (ADR) services if problems arise.

The vast majority of builders are already signed up to the Approved Code Scheme through sponsors including the Consumer Code for Home Builders, the Consumer Code for New Homes, ICW, Ark Insurance Group Ltd, ABC+ Warranty Consumer Code and Advantage Home Construction Insurance as part of their obligation to provide warranty cover.

Whilst there have been discussions in the sector about the opportunity for a single Code for home builders this has not been progressed, and the existing Code sponsors provide a comprehensive solution that fully protects consumers.  There is no obligation on developers to move from their current Code Sponsor.

CTSI administers the Government-backed Approved Code Scheme for endorsing Codes of Practice on behalf of the Consumer Codes Approval Board (CCAB), which is completely independent of business. CTSI can therefore reassure businesses and consumers that Approved Codes are a tried, tested and trusted means of driving up standards and safeguarding homebuyers.

With more than 45,000 members across eight different sectors, including home-building, the Approved Code Scheme has demonstrated its effectiveness by safeguarding more than £155bn in consumer spending and helped to recover more than £2.2m for consumers in the past year.

John Herriman, Chief Executive of CTSI, said: “Crucial to the Government’s plans to build 1.5 million new homes over the next five years will be independent vetting of home-builders. The Approved Code Scheme was originally set up by the Labour Government and the Office of Fair Trading in 2001, and is now operated by CTSI.

“To ensure that high quality and honest building and sales practices are at the heart of new housing development, it is important that there is independent oversight free from the interests of industry. There must also be absolute transparency and clarity for buyers and builders alike about how this can be achieved and what protections are already in place.

“A new home is one of the biggest purchases that a consumer will make in their lifetime; it is vital that home buyers are provided with assurance that the businesses they deal with have customer service at their heart, that they know how to identify legitimate businesses, and that they have access to redress when things go wrong. It is also vital that businesses can demonstrate their compliance and best practice credentials through membership of the Approved Code Scheme.”

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