Complaints regarding new-build homes have more than tripled in the past year, according to data from the New Homes Ombudsman's (NHOS) annual report. The number of complaints rose from 593 in the 2024-25 period to 1,802 in 2025-26, marking a 204% increase.
This surge in complaints is partly attributed to an increase in the number of housebuilders joining the voluntary ombudsman scheme, which was established in 2022. Between 2024-25 and 2025-26, the number of registered developers grew by 26%, with over 65% of new homes sold in the UK now covered by the scheme.
Homeowners can file complaints about issues ranging from cosmetic flaws and incomplete finishing work, known as snagging, to structural defects and unsatisfactory customer service from builders. If the Ombudsman rules in favor of the homeowner, compensation can be awarded, or the developer can be compelled to rectify the issues.
The report also indicates that homeowners are increasingly successful in their complaints, with decisions favoring them rising from 78% to 82% over the year. Consequently, the total compensation awarded to complainants surged by 221%, from nearly £67,000 in 2024-25 to almost £215,000 in 2025-26.
Defects and snagging were the most common concerns raised by consumers. Enquiries related to defects increased by 162%, while snagging-related enquiries saw a 205% rise. These issues span from minor cosmetic problems like poor plastering or tiling to more significant structural and safety concerns, such as missing insulation, improperly installed fire safety equipment, and substandard brickwork.
One notable case involved a homeowner awarded £6,158 for persistent damp, mould, and structural problems. This included £3,000 for distress and inconvenience, reimbursement for survey costs, and a directive for the developer to undertake remedial work.
While the NHOS scheme is voluntary, a third of new homes sold remain outside its scope, leaving some homeowners without access to its dispute resolution service. In October 2024, the government accepted a recommendation from the Competition and Markets Authority to establish a statutory NHOS scheme and a mandatory consumer code for housebuilders. Although the government has reaffirmed its commitment to this reform, a specific timeline for implementation has not yet been provided.
Nigel Cates, chief ombudsman at the NHOS Service, stated that the rise in complaints reflects both increased eligibility and greater awareness of the service. He emphasized the need for consistent protection for all buyers, especially as the government aims to deliver 1.5 million new homes. Cates advised prospective buyers to verify developer registration with the New Homes Quality Code and NHOS, secure promises in writing, thoroughly inspect the build, and maintain records of any issues.
Emma Toms, chief executive of the New Homes Quality Board, highlighted the value of the independent Ombudsman in resolving disputes and underscored the importance of raising standards across the new homes sector to ensure customers receive expected quality and service.
Separately, in June 2026, seven major housebuilders faced a £4.5 billion class-action lawsuit over alleged anti-competitive practices that may have inflated house prices. The legal action, initiated on behalf of over 700,000 consumers who bought new-build homes between October 2015 and June 2026, awaits approval from the Competition Appeal Tribunal. If approved, affected homeowners could receive between £3,100 and £6,200 each.