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In response to the Office of Fair Trading report, which looked into customer satisfaction, a code for dealing with customers is now being developed by a cross-industry steering group. This group includes 11 members, covering housebuilders small and large, existing home warranty providers and, importantly, mortgage lenders.

The key parts of the scheme will be:

• A code of conduct that reflects the core criteria of the OFT’s Consumer Code Approval Scheme. This will provide consumers with clear information and a complaints scheme with independent redress.
• A programme of monitoring and tracking complaints and other data to ensure feedback and continual improvement of the code and its application.
• A programme of mystery shopping and other research to provide data to demonstrate the effectiveness of the code and its application.
• A low-cost alternative dispute resolution scheme that will deal with those elements of a dispute that currently fall outside warranty procedures.

The code is envisaged to incorporate the existing warranty processes, with an alternative dispute resolution scheme stepping in where the warranty cover ends. Although the details are to be finalised, the kind of issues not currently covered by existing warrantees include contractual issues, such as whether the taps installed in your bathroom are the ones specified in advance by your builder.

Additionally, it would most likely provide more effective resolution of disputes for buyers over move-in dates, important in today’s market as construction slows and completions are delayed.

A key indication I have identified from the OFT report is that existing methods for addressing problems do not always seem to have been followed. This suggests that making consumers aware of the code and their rights under it will have to be an important element of the scheme.

In December, the implementation body will be established. In the meantime, the steering group will continue to develop the contents and mechanisms of the code, in consultation with the OFT.

The development of a successful code will give the industry a valuable boost at this challenging time.