A new build warranty protects the buyer of a newly built home against certain defects for a set number of years after completion. This guide explains what a warranty is, how the usual 10 year term splits between the builder and the warranty provider, what the main providers cover and leave out, and the codes and ombudsman that sit alongside it.
What is a new build warranty?
A new build warranty, also called a structural warranty, is cover for a newly built or newly converted home against defects in how it was built, usually for 10 years from completion. The developer arranges and pays for it, and you receive a certificate as proof.
NHBC describes its Buildmark policy as 10 year warranty and insurance cover for new build and newly converted homes. LABC Warranty says the developer will already have arranged and paid for the warranty, and that the developer should give you a Certificate of Insurance. Keep that certificate with your property documents, because you will need the policy details to make a claim.
How does the 10 year warranty split between the builder and the insurer?
For the first two years after legal completion, the builder must put right defects you report, with the warranty provider standing behind that promise. From year three to year ten, the provider’s insurance covers damage caused by defects in specified parts of the home.
The providers use different names for the same two stages:
- NHBC calls the first two years the builder warranty period, during which NHBC guarantees the builder’s obligations, and the following eight years the NHBC insurance period.
- LABC Warranty and Premier Guarantee call the first two years the Defects Insurance Period and years three to ten the Structural Insurance Period.
In the first two years your builder is the first port of call. LABC Warranty and Premier Guarantee both say to contact them if you cannot reach agreement with the builder or the builder will not carry out repairs. From year three you claim from the warranty provider directly.
Some policies add other cover on top. NHBC’s Buildmark protects your deposit between exchange of contracts and legal completion if the builder becomes insolvent. Premier Guarantee lists mechanical and electrical cover running for the first five years.
Who are the main new build warranty providers?
The Consumer Code for Home Builders names the UK’s main home warranty bodies as NHBC, Premier Guarantee, LABC Warranty and Checkmate policies sold by Lockton. Policies differ in detail, so read the one that applies to the home you are buying.
- NHBC issues the Buildmark policy for new build and newly converted homes.
- LABC Warranty provides structural warranties for new homes bought from a developer.
- Premier Guarantee provides structural warranties and publishes Insurance Product Information Documents (IPIDs) that summarise the cover in each policy.
Ask the developer which provider covers the home, and ask for the policy summary before you exchange contracts. A summary is short and tells you what is covered, what is excluded and what excess applies.
What does a new build warranty cover?
In the structural period, cover is for damage caused by defects in the structure and external envelope of the home. LABC Warranty and Premier Guarantee list foundations, load bearing walls, floors, roofs, chimneys and flues, external render, and double or triple glazed external windows and doors.
Premier Guarantee’s list of structural elements also includes ceilings, staircases, internal partition walls, roof coverings, floor decking and screeds, and wet applied plaster. Both LABC Warranty and Premier Guarantee include contaminated land cover where a statutory notice is served for land that was contaminated before completion.
NHBC’s insurance period covers the cost of repairing damage caused by defects in the parts of the home its policy lists, such as foundations not built to NHBC requirements. If the home cannot be lived in during the repairs, NHBC also covers reasonable costs for alternative accommodation and storing your belongings.
What is not covered by a new build warranty?
General wear and tear, problems caused by a lack of maintenance, cosmetic or non structural issues and snagging are not covered in the structural period, according to LABC Warranty and Premier Guarantee. Appliances, fixtures and fittings, and alterations made after completion are also excluded.
NHBC lists similar exclusions, including gradual deterioration, wear and tear, neglect and failure to carry out appropriate maintenance. Claims also carry an excess, or in NHBC’s insurance period a minimum claim value, set out in the policy. A repair costing less than that is not a valid claim, so it is worth knowing the figure for your policy.
Snags, such as a sticking door or a scuffed skirting board, belong with the developer’s after sales service rather than the structural warranty. Report them in writing as soon as you find them.
What are the Consumer Code for Home Builders and the Consumer Code for New Homes?
They are two separate codes that set rules for how registered builders market and sell new homes and look after buyers once they move in. Both give buyers access to independent dispute resolution if a complaint cannot be settled with the builder.
- The Consumer Code for Home Builders has operated since 2010 and applies to most homes covered by NHBC, Premier Guarantee, LABC Warranty and Checkmate. It protects buyers from reservation until two years after legal completion, and includes an Independent Dispute Resolution Scheme and an audited compliance regime. The Fifth Edition applies to homes reserved from 1 January 2024.
- The Consumer Code for New Homes is approved by the Chartered Trading Standards Institute and is mandatory for developers registered with it. It covers the pre contract stage, exchange of contracts, legal completion including the chance of a pre completion inspection, after sales service, and complaints, with free independent dispute resolution. Version 5 applies to reservations from 1 January 2024.
Which code applies depends on which one your developer is registered with, so ask. The Consumer Code for Home Builders does not apply to homes that were covered by the New Homes Quality Code when the first buyer reserved them.
What is the New Homes Quality Code?
The New Homes Quality Code is a code for developers run by the New Homes Quality Board, a non profit organisation. It covers the whole process from marketing and sales to after sales service, and protects buyers from reservation until two years after their completion date.
Developers who sign up to it must, among other things:
- give you a 14 day cooling off period as part of the reservation
- not use high pressure selling techniques
- give you, or a suitably qualified inspector you appoint, the chance to carry out a pre completion inspection
- provide a clear after sales process for two years following completion, and aim to resolve snags or defects within 30 calendar days
Version 2 of the Code applies to homes reserved from 2 March 2026, and Version 1 to homes reserved before that date.
What does the New Homes Ombudsman do?
The New Homes Ombudsman Service investigates complaints about developers registered under the New Homes Quality Code. If you cannot resolve a problem with the developer, you have free access to it once the developer’s complaints process has run and 56 calendar days have passed.
The Ombudsman can only help if the developer is a Registered Developer and has finished investigating your complaint. The New Homes Quality Board says the Ombudsman’s decisions are final and that any compensation it decides on must be paid by the deadline it sets. The Building Safety Act 2022 gives the government the power to introduce a statutory code and ombudsman, but there is no set timeframe for using it.
What should you check about the warranty before you buy?
Ask which provider covers the home and which consumer code the developer is registered with, and read the policy summary before you exchange. Once you complete, keep the certificate safe and note who to contact in the first two years and afterwards.
A short checklist to take to the sales team:
- Which warranty provider covers the home, and when does cover start?
- Can I see the policy summary or IPID, including the exclusions and the excess?
- Which consumer code is the developer registered with, and how do I complain if something goes wrong?
- Can I, or an inspector I appoint, inspect the home before completion?
- Who handles snags and defects in the first two years, and how do I report them?
If you have a home to sell first, our guide to part exchange on a new build explains how that works. Part exchange does not change any of the warranty checks above.
New build warranty: frequently asked questions
Contact the builder or developer first, in writing. In the first two years they are responsible for putting right defects you report. If you cannot reach agreement or they will not carry out the repairs, LABC Warranty and Premier Guarantee say to contact them, and NHBC guarantees the builder’s obligations in this period.
Not in the structural period. LABC Warranty and Premier Guarantee both exclude snagging from structural cover. Snags are for the developer’s after sales service, and under the New Homes Quality Code developers should aim to resolve snags or defects within 30 calendar days.
NHBC’s Buildmark does: between exchange of contracts and legal completion, it covers the loss of your deposit, or the extra cost of finishing the home, if the builder becomes insolvent. Other policies differ, so check the policy summary for the home you are buying.
No. The New Homes Ombudsman Service can only look at complaints about developers registered with it under the New Homes Quality Code, and only once the developer has finished investigating. Homes under the other consumer codes use those codes’ own independent dispute resolution schemes.
Looking for a new home in Tunbridge Wells?
Whoever you buy from, ask which warranty and which consumer code apply before you reserve. You can browse our new homes in Tunbridge Wells to see what we are building now.
