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Critical success factors for Codes of Practice: Learnings from 15 Years as Chair of the Consumer Code for Home Builders
Posted 19/12/25
The Consumer Code for Home Builders marks its 15-year anniversary this year, having been established following concerns of poor levels of customer service in the home building industry. In the intervening years we have made great progress – builders now offer a much more consumer-focused approach to one of the biggest purchases people make in their lifetime.
Codes of practice like ours have a major role to play in improving consumer protection. But delivering meaningful impact requires more than just adhering to a set of requirements. In our experience of operating this Code for 15 years, we’ve learned just how important it is to have the right structure and processes in place that will genuinely drive better outcomes for consumers.
Solid foundations
Like new build homes themselves, getting the foundations right at the start is crucial. The Consumer Code for Home Builders was the first code of practice in the marketplace, so there was no blueprint for us to follow. Drawing on our board members’ existing consumer protection and industry expertise, however, we knew there were fundamental elements we would need in place from day one, including:
- An appropriate balance of consumer and industry input
- A set of requirements that would be both robust and achievable
- An independent redress scheme
- Compliance monitoring
- The ability to apply sanctions if the Code of Practice was not adhered to
The Code has developed and changed over the past 15 years, but these core elements have remained at the heart of all our activity, which has helped see consumer satisfaction levels double. Just 46% of home buyers were prepared to recommend their builder pre-Code, which has risen to 94% in 2025[1].
Clear, workable standards
Naturally, establishing the right set of requirements in any Code of Practice is essential. They need to consider the most likely causes of detriment to consumers alongside existing protection, to plug gaps in consumer support while minimising duplication. In our case, we were particularly mindful of the build quality cover already provided through home warranty schemes. That is why new homes codes of practice principally focus on customer service, including providing clear, truthful information and support from the point of reservation until two years after legal occupation.
Although the primary aim of a code of practice is to protect consumers, they must also be achievable. Industry insight is crucial in developing any new standards, particularly in complex sectors such as home building, where some challenges are genuinely beyond a builder’s control.
Enabling meaningful improvement
From the outset, we wanted our Code to drive better behaviour, which meant supporting our requirements with compliance monitoring, learning and, where needed, sanctions. We do this through a mix of site inspections led by Trading Standards professionals, alongside desktop audits, all of which feed into our Disciplinary and Sanctions Panel. The Panel, which is independently chaired, requires we write to the chief executives of every developer – large or small – following a breach of our Code as determined by an adjudicator under our Independent Dispute Resolution Scheme, to encourage support for improving customer service at the highest level.
Serious breaches can lead to sanctions being applied by the home warranty providers. We have also introduced a new pilot scheme where builders who do not comply with an adjudicator’s decision in the agreed timeframe face a daily non-compliance fee. This is paid to the consumer in recognition of the additional inconvenience caused by not having the award complied with swiftly.
In addition, we work in close partnership with CTSI and, from time to time, with Trading Standards Authorities across the UK if criminal offences are revealed, such as misappropriate use of our logo, incorrectly implying membership of our Code Scheme.
These initiatives are supported with a suite of free resources for builders, designed to tackle problems at source and help the wider industry learn from mistakes. We also provide helpful resources for consumers to help them become more confident, informed purchasers, knowing what questions to ask and what to expect from their builder. Combined, these efforts are helping to proactively improve customer service, and reduce the likelihood of future disputes.
Maintaining relevance
Industries develop and change and so must codes of practice. We commit to regularly reviewing our Code to ensure it remains fit for purpose. Our most recent review involved a comprehensive, independent reassessment of the Code, with broad stakeholder input. This looked at both improvements for our Code as well as recommendations for the wider industry to consider which could improve quality and customer service. That review led us to introduce more comprehensive pre-completion snagging requirements, as well as an increase in the total amount home buyers could claim through the dispute resolution scheme.
Outside of these formal reviews, we receive consumer and industry insights via our Advisory Forum. It is these independent specialist voices, representing consumers, builders, lawyers, agents, finance providers and others, that help ensure our Code remains effective. Wider stakeholder engagement, and the willingness to regularly take a fresh look at consumer and industry needs, is key to any code of practice wanting to ensure its continued relevance.
It was extremely encouraging to hear the Minister for Employment Rights and Consumer Protection, Kate Dearden MP, publicly back the Approved Code Scheme (ACS) recently[2]. We are proud members of the ACS, which is operated by the Chartered Trading Standards Institute and offers an extra layer of rigour – and reassurance – for consumers. As an Approved Code, we are independently audited every year by Trading Standards officials and must demonstrate how the Code sets and maintains high standards, monitors compliance, and provides free, independent dispute resolution. Code schemes that meet the ACS standards offer consumers extra peace of mind that their members are trustworthy, accountable organisations.
The landscape is changing for new homes codes, which could see government introducing a single mandatory New Homes Ombudsman with an accompanying code of practice in the future. The exact details and timescales are unclear. What is certain, is that the Consumer Code for Home Builders team will continue to actively encourage policymakers to ensure any changes build on and improve existing protections and continue to enable positive learning across the home building industry.
[1] Annual Home Builders Federation (HBF) National New Homes Customer Satisfaction Survey
[2] https://www.tradingstandards.uk/news-policy-campaigns/news-room/2025/consumer-minister-backs-ctsi-approved-code-scheme-in-tackling-consumer-detriment/
