70% of new homes have faults, says OFT report

Seven out of 10 people find faults when they buy new homes and a third face delays moving in, according to a report by the Office of Fair Trading.

The report represents the first feedback from the OFT's investigation into competition and consumer protection in the housebuilding industry.

Some people discovered more than 50 faults in new homes, with more than half finding up to 10 faults.

Problems ranged from minor issues such as decoration and plasterwork, to more serious problems affecting central heating and hot water.

However, the OFT found that the majority of problems were fixed by housebuilders relatively quickly, although some homeowners had to wait for between six months and a year.

Other findings of the survey included:

• 32% of homebuyers had not been able to move into their new home on the date they were initially told;
• 28% could not move in for two to four months, and 3% were delayed by more than a year;
• 37% of people said they incurred costs putting right faults, with 45% paying out more than £1,000 and 2% spending over £10,000;
• 80% said they would buy a new-build home again, but only 60% would recommend their current builder.

The OFT's full report on competition and consumer protection in the housebuilding industry is due to be published in September.

The OFT has also published findings from another report, carried out by consultants KPMG into financing for housebuilders. It found that the holding of landbanks by builders reflected their need to have a pipeline of land at different stages in the development process, rather than a reluctance to develop a site or a desire to prevent competition.

The OFT said it would spend the next three months discussing its findings with the housebuilding industry, consumer groups and other stakeholders, adding that no final conclusions had yet been reached.