Complaints about new-build homes in Britain more than tripled in a year, rising from 593 in 2024-25 to 1,802 in 2025-26, according to the New Homes Ombudsman's annual report.
The 204 per cent increase came partly because more housebuilders have signed up to the ombudsman scheme, which is voluntary and began in 2022. The number of developers registered with the scheme rose by 26 per cent over the year, meaning more than 65 per cent of all new homes sold in the UK are now covered.
More homeowners winning compensation
Homeowners can complain to the ombudsman about issues such as snagging, structural defects and poor customer service from housebuilders, and can be awarded compensation if their complaint is upheld. The service can also force developers to fix problems.
The proportion of decisions upheld in favour of homeowners rose from 78 per cent to 82 per cent over the year. The total compensation awarded increased by 221 per cent, from almost £67,000 in 2024-25 to almost £215,000 in 2025-26.
Defects and snagging drive complaints
Defects and snagging in new homes were the most common issues raised in enquiries in both years. Defect-related enquiries increased by 162 per cent, while snagging enquiries rose by 205 per cent.
These cases range from cosmetic problems such as misaligned tiles or poor plastering and painting, to more serious structural and safety failures. The report cited missing cavity wall insulation, incorrectly installed fire safety equipment, party wall problems affecting acoustic performance, and substandard brickwork.
One notable case highlighted in the report involved persistent damp, mould and structural problems in a new-build property. The ombudsman awarded the homeowner £6,158, including £3,000 for distress and inconvenience and reimbursement of independent survey costs, and directed the developer to carry out a programme of remedial works.
A third of new homes still outside the scheme
Complaints must be raised within two years of completing the purchase, and homeowners must first exhaust the developer's internal complaints process.
A third of all new homes sold remain outside the scope of the scheme, which is still voluntary, leaving many new homeowners without access to the support and adjudication service it provides when something goes wrong.
In October 2024, the Government accepted a recommendation from the Competition and Markets Authority to establish a statutory New Homes Ombudsman Service and a single mandatory consumer code for housebuilders. The Government has since reiterated its commitment to statutory reform, but further clarity on the timetable for implementation is still awaited.
What officials say
Nigel Cates, chief ombudsman at the New Homes Ombudsman Service, said the rise in complaints reflected both more homeowners becoming eligible to use the ombudsman and greater awareness of the service.
He said the majority of new homes are now covered by the ombudsman, but around a third remain outside the scheme. He said buyers should have the same high standards of protection regardless of which developer they purchase from, which he said was particularly important as the Government works to deliver 1.5 million new homes.
Cates advised customers to check the developer and the protection that comes with the home before reserving it, and to look for New Homes Quality Code and New Homes Ombudsman Service coverage. He also advised getting important promises in writing, inspecting the final build carefully, and keeping a clear record if anything needs fixing.
Emma Toms, chief executive of the New Homes Quality Board, said the figures demonstrated the value of giving consumers access to the independent ombudsman when things go wrong. She said they also reinforced the importance of raising standards across the new homes sector, to help more customers receive the quality, service and support they should expect when buying a new home.
Separate legal action over house prices
In June 2026, seven of Britain's largest housebuilders were handed a £4.5 billion class action after lawyers claimed that anti-competitive practices had led to higher house prices for buyers.
The legal action was launched by solicitors on behalf of more than 700,000 consumers who bought new-build homes between October 2015 and 24 June this year. It must be approved by the Competition Appeal Tribunal before it can proceed.
If approved, each affected homeowner could be due compensation of between £3,100 and £6,200, totalling between £2.2 billion and £4.5 billion.
