Mandatory 15 year warranties on new homes supported with caution
An LABC Warranty survey has found that while the majority of those in the housing industry are unaware of the potential for minimum 15-year structural warranties to be introduced by law, they are optimistic about the effects of that change.
The Building Safety Act, introduced in April 2022, brings generational change to the UK's construction industry. The Act introduces new regulations, enforcement mechanisms regulatory bodies, and enhanced powers for these regulators.
Significantly, it also includes provisions that will make structural warranties legally mandatory for the first time.
The survey, which drew responses from housebuilders and developers, designers, building control professionals, consultants, contractors, self-build, social housing provider, and homeowners focused on two aspects of the proposed legislation:
Minimum 15-year warranties. The legislation, if triggered by secondary regulations, would establish a new standard of 15-year minimum coverage for structural warranties. Currently, most warranties span 10 years, with certain exceptions.
All new-home coverage. The new legislation, if activated, would also make it mandatory for all new-build homes to be covered by a structural warranty. Presently, no statutory requirement mandates warranty coverage for new build homes.
LABC Warranty's survey set out to discover the awareness level for the above legislative changes, and the level of support these changes have among existing structural warranty customers and readers of their technical content.
The survey shows that:
- 64% of respondents were unaware of the proposal to extend the standard 10/12-year warranty term to 15 years.
- 53% were unaware of a proposal to make warranty cover a legal requirement for all new homes.
Despite this:
- 60% of respondents are in favour of extending warranties from 10/12 years to 15 years.
- 58% believe mandating warranties would lead to better standards of safety, or improved customer satisfaction.
- Overall, 40% believed there would be a positive outcome if all warranty-related secondary legislation came into force, 23% believed it would lead to a negative outcome, and 37% believed it would lead to a mixed result.
Only 5% of respondents said they had prepared for the secondary legislation to be enacted.
Reasons in support of longer warranty periods included improved standards (46%), better protection for homeowners (41%) and alignment with the Defective Premises Act liability period (10%). Lack of need (56%) and increased cost (37%) were the main reasons for those against.
Building control practitioners were most in support of the extended term (92%) while housebuilders/developers were most against (67%).
LABC Warranty commented: "Even respondents who offered a broadly positive outlook had reservations about potential negative effects of the legislative changes discussed. Given this and the strength of feeling shown through comments, LABC Warranty would describe the response as a very cautious optimism while we await more details on any upcoming secondary legislation."
This article appears on the CIAT news and blogsite as "Industry 'cautiously supports' mandatory 15-year warranties on new homes" dated September 12, 2023.
--CIAT
[edit] Related articles on Designing Buildings
- Agency.
- Bonds.
- Bonds v guarantees.
- Breach of contract.
- Building Safety Act.
- Building safety bill.
- CIAT raises concerns about Building Safety Bill.
- CIOB responds to Newsnight report - Trapped: the UK's building safety crisis.
- CIOB reviews the Building Safety Bill.
- Collateral warranties.
- Defects.
- Definition of collateral warranty.
- Difference between collateral warranties and third party rights.
- Duty.
- Fire safety bill.
- Fit for purpose.
- Golden thread.
- Grenfell Tower fire.
- Grenfell Tower Inquiry.
- Guarantees.
- Hackitt Review.
- Insurance.
- Miller Act.
- Performance bond.
- Practical considerations of collateral warranties.
- Professional consultant's certificate.
- Reasonable skill and care.
- The Building Safety Bill and product testing.
- The Building Safety Bill - A Quality Response.
- The Building Safety Bill, regulations and competence.
- The golden thread and BS 8644-1
- Warranty.
Featured articles and news
A threat to the creativity that makes London special.
How can digital twins boost profitability within construction?
A brief description of a smart construction dashboard, collecting as-built data, as a s site changes forming an accurate digital twin.
Unlocking surplus public defence land and more to speed up the delivery of housing.
The Planning and Infrastructure bill oulined
With reactions from IHBC and others on its potential impacts.
Farnborough College Unveils its Half-house for Sustainable Construction Training.
Spring Statement 2025 with reactions from industry
Confirming previously announced funding, and welfare changes amid adjusted growth forecast.
Scottish Government responds to Grenfell report
As fund for unsafe cladding assessments is launched.
CLC and BSR process map for HRB approvals
One of the initial outputs of their weekly BSR meetings.
Architects Academy at an insulation manufacturing facility
Programme of technical engagement for aspiring designers.
Building Safety Levy technical consultation response
Details of the planned levy now due in 2026.
Great British Energy install solar on school and NHS sites
200 schools and 200 NHS sites to get solar systems, as first project of the newly formed government initiative.
600 million for 60,000 more skilled construction workers
Announced by Treasury ahead of the Spring Statement.
The restoration of the novelist’s birthplace in Eastwood.
Life Critical Fire Safety External Wall System LCFS EWS
Breaking down what is meant by this now often used term.
PAC report on the Remediation of Dangerous Cladding
Recommendations on workforce, transparency, support, insurance, funding, fraud and mismanagement.
New towns, expanded settlements and housing delivery
Modular inquiry asks if new towns and expanded settlements are an effective means of delivering housing.