In Northampton South, taking the first step on the property ladder is getting harder. First-time buyers across West Northamptonshire paid an average of £242,000 in July, up 1.5% on a year earlier, while private rents rose 3.3% in the year to August.
For those trying to save for a deposit while paying rent, that is a squeeze from both sides, and it isn’t unique to Northampton. Across the country, millions of would-be homeowners face the same issue. Building more new homes is essential to easing that pressure, and housebuilders have a vital role to play in delivering them. Quantity and quality must go hand in hand, which is why the government must now put safeguards in place for new home buyers getting their first foot on the housing ladder.
Before entering Parliament, I spent more than 20 years in construction, and I know the true measure of quality in a new home is not how it looks on completion, but whether everything works as it should and stands the test of time. What that gives buyers is confidence: confidence that their home has been built properly and will serve them well for years to come. The Budget confirmed £4.7bn of lending for the government’s Your First Home scheme, which will back around 70,000 first-time buyers and is hugely welcome. And we know targeted support can work: an independent government evaluation, published in September, estimated that around 15% of new homes built in England between 2013 and 2023 were attributable to the previous scheme, Help to Buy. It was an important step for buyers, but it also brought questions around quality, and critics are right to warn that demand-side support can push up prices. Your First Home has the advantage of applying lessons from that experience.
Most people who buy a new-build home are happy with it, but convincing prospective buyers is another matter. Research from the Chartered Institute of Building found that 60% of people would not consider buying one, with concerns about workmanship and quality among the reasons cited. Housebuilders tell me that weak demand is holding back new sites. If we’re to build more homes, we also need to give people the confidence to buy them.
Closing that confidence gap would benefit buyers and housebuilders alike. For most people, buying a home will be the biggest financial commitment of their lives. If they’re going to stretch themselves to get onto the property ladder, they need assurance that what they’re buying is built to a high standard, and that they’re protected if something goes wrong.
Yet today, the safeguards available to someone buying a new home depend on which developer they buy from. The voluntary New Homes Quality Code sets out the protections buyers can expect, with the independent New Homes Ombudsman Service providing a route to redress when those standards are not met. But coverage is not yet universal. Where buyers do have access, they use it: complaints tripled last year, partly because of increased coverage of the scheme and higher awareness, and more than eight in ten decisions went at least partly in the homeowner’s favour.
The answer to this lies in measures the government has committed to but delayed: the introduction of a mandatory consumer code for new builds and New Homes Ombudsman. That delay must end. The cross-party inquiry I chaired, ‘Proud to Call Home’, made that point.
Building on our report’s recommendations, and with developers signing up ahead of next spring’s launch, the Chancellor should make participation in Your First Home conditional on developers signing up to a recognised consumer code and giving every buyer access to the New Homes Ombudsman.
Many larger developers already recognise the value of strong consumer protections, while smaller firms may need a clear and proportionate transition period to meet the requirements. Nevertheless, such a move would be a meaningful step towards ensuring that taxpayer money is invested wisely and that strong consumer protections are in place. It’s not just homebuyers who will benefit: getting things right the first time also saves developers time and money, protects their reputations and reassures lenders.
Buyer confidence and housebuilding go hand in hand. If we want to build more homes and ease the housing crisis, we must also give people the peace of mind to buy them. For first-time buyers in Northampton and across the country, a new home should be a moment of pride, not the start of a battle to put things right. By matching support for homeownership with stronger protections, we can help get more people into the new home they deserve.