Why are developers continually underperforming when handing over their newly built houses to customers? Why is your new house completion date moving further back? Less than two-thirds of newly built homes are completed on time. This is a shocking fact and there is nothing new build house buyers can do about it. As professional new build snaggers, we know how frustrating this can be.
Check out some of the snags we have found on our YouTube channel.
The impact of a delayed house completion
Delayed completion is not only frustrating for newly built house buyers but will also impact on other people and businesses such as professional snaggers, removals, carpets, mortgage providers, etc, who must adjust their diaries to try and reschedule your appointments.
Having your house completion date moved is disruptive. It can cost house buyers a considerable amount of money, including extended rental costs, storage costs, as well as the possible nightmare of having to rearrange mortgages etc.
The stress and anxiety this causes can be considerable and will almost certainly spoil the whole process of buying a new build.
Why are developers falling behind?
There are several reasons why developers fall behind. Building houses is complex with developers using a number of trades and specialist subcontractors to construct them.
Currently, there is a high skills shortage within the UK. Brexit and the Covid-19 pandemic are also having an impact on output and ultimately affect the number of new homes being delivered to customers.
Other issues which have an impact on the industry include supply chain shortages and lack of trade. There is also a demand for more houses to be built. As we come out of the pandemic, this will have an impact throughout 2022 and beyond.
What are the reasons why your completion is delayed?
There can be a number of reasons why your newly built house has been delayed, including:
- Supply chain delays (materials)increased prices
- Shortage of subcontractors
- The war in Ukraine
- Human error
- Planning constraints
- The house has failed its final inspection (the UK Finance Logic Test – formerly known as the Council of Mortgage Lenders (CML) Logic Test – failed).
- A risk to health and safety
- A significant disruption to the occupier
- A potential Warranty Claim
- Not all completion documents have been received or uploaded
- Your developer has not booked the final inspection
Whilst these are some of the issues that can cause delays with your newly built house they are not all of them.
When you are faced with these delays it is inevitable that your completion date will become uncertain and could potentially change a number of times.
What do you do if your house completion date is delayed?
Your developer should communicate these delays with you and your solicitor. Once you have been informed of the delay you should also contact your conveyancing solicitor to make sure the developer has informed them of the delays.
Your solicitor will be able to offer you advice and support as they will have experienced these types of delays many times before.
Delays with new build houses are common. We are constantly being asked to adjust our snagging appointments to accommodate these delays.
Delays can lead to increased costs, frustration, stress, and anxiety. But if you are prepared, then you can overcome these problems.
The most important issue is not to let these delays spoil the enjoyment of your brand-new home.
Not all completion dates are delayed, and many go smoothly, remember a lot happens on completion day, the time of key handover can be anytime up to the close of business. Speaking with your sales advisor about the time of key handover can help as they will have a rough idea of when it will get through the system. For answers to other frequently asked questions, from a delayed house completion date to liaising with builders and developers, visit our FAQ page.
For more advice on new build homes, house completion dates, and to learn how our snagging services can give you peace of mind, get in touch.
We have had repeated delays in possessing our new built flat which have surpassed a whole year… we are buy-to-let Cash buyer and have lost a whole year of rental returns during this period. How to retrieve these losses ?
Hi Fayez,
Sorry for the late reply, I am sorry you have lost a whole year waiting for your apartment, I think it would be hard to claim your losses against the developer, but good luck.