Complaints from new-build homeowners to the New Homes Ombudsman (NHOS) have more than tripled in a year, with defects and snagging continuing to be the main causes of disputes. The NHOS reported receiving 1,802 formal complaints in 2025/26, a 204% increase from 593 in the previous year.
This rise in complaints occurred as more developers joined the voluntary scheme, with registrations increasing by 26% over the same period. This expansion means that over 65% of new homes sold in the UK are now covered by the scheme.
The Ombudsman also issued significantly more final decisions, up by 236%, with the proportion found in favour of homeowners rising from 78% to 82%. Compensation awarded to buyers also saw a substantial jump, increasing by 221% to almost £215,000 in 2025/26, compared to around £67,000 the year before.
Defects and snagging remain the most common issues, with related enquiries increasing by 162% and 205% respectively. These issues range from cosmetic problems like poor plastering to more serious construction failures, including missing cavity wall insulation and defective party walls. However, the NHOS noted that slow responses, poor communication, and delays in repairs often escalate initial problems into prolonged disputes.
Despite the scheme's growth, approximately a third of new homes sold in the UK are not covered. Nigel Cates, chief ombudsman at the NHOS, stated that the increase in complaints reflects both greater eligibility and awareness of the service. He also highlighted the importance of statutory footing for the Ombudsman, especially as the government aims to deliver 1.5 million new homes.