It looks unlikely that the housebuilding industry is going to be able to produce a “Homebuilding Code” to deal with the issues raised in the homebuilding market study. This is because Zurich, an initial signatory, will not take part in the administration of the code.
The Office of Fair Trading (OFT) believes that without Zurich the code, as originally described in the homebuilding market study is not achievable. However, the housebuilding industry says that it remains committed to delivering some kind of voluntary code at some stage and is deciding whether to make an application for its code under the OFT’s Consumer Codes Approval Scheme (CCAS) or whether its code will operate without OFT approval.
The latter would be a real blow for consumers and would mean that the industry had failed and hopefully the OFT will be forced to recommend a change in consumer legislation to improve consumer rights in this important area.