Complaints about new-build homes triple in a year as homeowners win bigger payouts

The number of complaints made about new build homes has more than tripled in the space of a year, data shows. The New Homes Ombudsman's annual report shows that the number of complaints received increased from 593 in 2024-25 to 1,802 in 2025-26, an increase of 204 per cent.Complaints have increased partly because more housebuilders have signed up to the ombudsman scheme, which began in 2022 and is voluntary. Between 2024-25 and 2025-26 the number of developers registered with the Ombudsman scheme increased by 26 per cent, with over 65 per cent of all new homes sold in the UK now covered by the scheme. Homeowners can complain about issues such as snagging, structural defects and poor customer service from housebuilders and be awarded compensation if the Ombudsman rules that it is due. It can also force housebuilders to put issues right. More homeowners are winning their cases, with decisions upheld in favour of the homeowner having increased from 78 per cent to 82 per cent across the year. The total amount of compensation awarded to those who had lodged a complaint increased by 221 per cent, up from almost £67,000 in 2024-25 to almost £215,000 in 2025-26.Issues related to defects and snagging in new homes were the most prominent issues raised in enquiries by consumers across both years. More housebuilders have signed up to the Ombudsman scheme, which started in 2022Defect-related enquiries increased by 162 per cent while snagging enquiries rose by 205 per cent.Snagging and defect related cases range from cosmetic defects in new homes such as misaligned tiles, poor plastering or painting finish through to more serious structural and safety failures, including missing cavity wall insulation, incorrectly installed fire safety equipment, problems with party walls affecting acoustic performance, and substandard brickwork.Among the notable cases highlighted in the report was one involving 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, alongside directing the developer to undertake a programme of remedial works.Complaints must be raised within two years of completing the purchase, and homeowners must exhaust the developer's internal process first. A third of all new homes sold are still outside the remit of what is currently a voluntary Ombudsman scheme, leaving many new homeowners unable to access the support and adjudication service it provides when something goes wrong.In October 2024, the Government accepted the Competition and Markets Authority's recommendation to establish a statutory NHOS scheme 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.Nigel Cates, chief ombudsman at the NHOS Service, said: 'The rise in complaints reflects both more homeowners becoming eligible to use the ombudsman and greater awareness of the Service. 'The majority of new homes are now covered by the Ombudsman, but around a third remain outside the scheme.'Buyers should have the same high standards of protection regardless of which developer they happen to purchase from, and this is particularly important as the Government works to deliver 1.5 million new homes.'Our advice for customers is before you reserve, check the developer and the protection that comes with the home, and look for New Homes Quality Code and NHOS coverage. 'Then get important promises in writing, inspect the final build carefully and keep a clear record if anything needs fixing.'Emma Toms, chief executive of the New Homes Quality Board, said: 'These figures demonstrate the value of giving consumers access to the independent Ombudsman when things go wrong. 'They also reinforce the importance of raising standards across the new homes sector, helping more customers receive the quality, service and support they should expect when buying a new home.'In June 2026, seven of Britain's largest housebuilders were handed a £4.5billion class action because lawyers claimed that their 'anti-competitive' practices led to higher house prices for buyers.The legal action was launched by solicitors on behalf of more than 700,000 consumers who purchased new-build homes between October 2015 and June 24 this year. But it must be approved by the Competition Appeal Tribunal before it can go ahead.If it is, each affected homeowner could be due compensation of between £3,100 and £6,200 each, totalling between £2.2billion and £4.5billion. How to find a new mortgage Mortgage rates have jumped as conflict with Iran has driven up inflation expectations and dashed hopes of interest rate cuts.If you need a mortgage because you are buying a home, or your current fixed rate deal is due to end, you should explore your options as soon as possible. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with expert mortgage advice.Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs.Or use L&C’s online Mortgage Finder to search thousands of deals from more than 90 different lenders to discover the best deal for you.Mortgage service provided by London & Country Mortgages (L&C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage