Homebuilding sector to create code of conduct

Date:Thursday 25th September 2008
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The homebuilding sector will develop its own code of conduct after an Office of Fair Trading (OFT) market study found many buyers experience delays and faults.

According to the OFT's research, the industry is "broadly competitive" but homebuyers often do not experience satisfactory service.

The industry has therefore agreed that it will create its own code of conduct and redress scheme for consumers.

The OFT's study found that there are few obstacles to entering the market and that there is no evidence to suggest any individual homebuilders have the power to up prices by limiting supply.

But homebuyers can suffer delays moving into their new homes, faults in the buildings and problems in the sales process such as reservation fees and the clarity of information provided to them.

Stewart Baseley, executive chairman of the Home Builders Federation, said that the OFT's report is "a real boost for the industry".

He said the evidence of healthy competition was "a credit to home builders".