Back in March last year, The National House Building Council (NHBC) began its new proposals on structural warranties to replace previous undertakings given in 1995, to update the current insurance regulations that protect against defects in new properties.
The Competition and Markets Authority (CMA) has discovered, during evidence gathering, and a Government consultation on the subject, that the NHBC is still highly competitive, although house builders are buying structural warranties from other providers, and has accepted the new proposed arrangements.
In a review of administrative legislation that was launched in March 2017, evidence was gathered over the following three months by the CMA, and reviewed at length during a Government consultation at the end of the autumn. Notice of acceptance of the new undertakings was given at the beginning of December 2017, and the superseded regs are now in force for the next 15 years across the UK.
What will change under the new proposals?
The revisions to the current structural warranties market will modernise the system, and further encourage competition, while strengthening the protection offered.
The NHBC must now display on its website, clear information to member builders that they can source structural warranties from the NHBC or another provider. The new regs will also ensure that the NHBC will not be required to oversee other structural warranties delivered by its competition.
The new proposed structural warranties undertakings will remain in place for the next 15 years, and will supersede previous undertakings.