The New Homes Quality Board (NHQB) released its first update to the New Homes Quality Code (Code) on 2 March 2026.  The Board plans to update the Code every three years, and because this is the first update, it gives you a clear indication of the Code’s direction and its future impact on your developments.

This update covers a range of areas, focusing on:

• Pre-completion inspections
• Affordability information
• Stronger protections against high pressure sales
• Transparency around professional advisor referrals

Alongside these headline changes, the update also includes a number of smaller amendments that indicate how the Code is expected to evolve over time.

This article is the first in a series explaining what these changes mean for you. Here, we give you a high‑level overview so you can understand the developments and how you can prepare.

Our next articles will cover these changes in more detail, including:

• Changes to the sales process
• Changes to legal information
• Changes to aftercare

We’ll finish the series by focusing on some of the smaller changes made and looking at the future of dispute resolution in the new homes industry.

Wider considerations

Alongside the key changes discussed below, the latest update to the Code provides you with some insight into how the NHQB’s approach to customer care is changing as the Code develops and expands.

Notably, all references to “should” have now changed to “must”, suggesting that the NHQB is starting to toughen its stance on compliance, and that there will be less tolerance for developers who are slow to adapt to the Code.

The “What the Code Covers” section now more clearly spells out what isn’t covered, making it clear that commercial purchasers, issues that could be dealt with through the structural warranty, claims related to the “tenure and occupancy status” of other properties and claims for loss of value all fall outside of the Code’s remit. The exclusion of claims concerning tenure is particularly noteworthy, given the recent influx of high-profile claims concerning homes sold in the vicinity of housing association properties.

Customer service standards and training also looks set for greater scrutiny, with new wording suggesting audits of developers’ systems, procedures and permissions will now take place.

The key changes in the March update

Marketing materials

The requirements for marketing materials have been updated following the implementation of the Digital Markets Competition and Consumers Act 2024 (“DMCCA”).

The code has also been changed to try to bring it closer to the modern day around the use of AI and digital content.

There are three significant changes you need to be aware of:

• You must include all information that could influence a customer’s decision upfront in your initial marketing of the home. You shouldn’t introduce material information later in the process.
• You must make this information available across all key marketing channels, including online property portals, digital and printed brochures, marketing communications and CRM‑driven property feeds.

You’re now restricted from using altered marketing materials, including edited photography, video, or CGI, which could be considered misleading.

The key areas of information you must now provide include:

• Property Costs – council tax/domestic rates, ground rent and service charges;
• Utility Information – whether the home has gas and arrangements for water, electricity and broadband access;
• Practical Information –. house type and parking arrangements
• Property Restrictions – any rights the property enjoys, any restrictions it is subject to and any easements it is affected by
• Construction Information – construction type and whether any cladding has been used
• Any known material risks – flooding, coastal erosion or mining.

Sales

Further restrictions on sales techniques have been implemented to tackle unfair sales and pricing techniques.

• Time Pressure Incentives have been restricted through the inclusion of a minimum seven day “consideration period” which must be included in any time sensitive offer. This must be honoured, even if this extends the time period beyond your incentive deadline.
• Ongoing Sale Risk must be explained so that customers understand when an incentive offer is made that the property will remain on the market and therefore could be reserved or sold by another purchaser whilst the seven-day period to consider time sensitive offers is ongoing.
• Drip Pricing[2] is now banned. Pricing must be transparent, with all the costs that a customer would reasonably expect to pay to be included in the headline price from the outset.
• Any Commission or Incentives must be explained to customers at the outset, such as commissions or fees you obtain for introducing the customer to solicitors or financial advisers.
• Reservation to Exchange Timescale must now be clearly set out to the customer at the outset and take account of sales that complete quickly at the customer’s request.
• Shared Amenities and Spaces at the Development must now be clearly explained to customers during the sales process.
• The Affordability Schedule must now cover five years (ten previously).
• Major Changes have now been amended to limit them to changes for which you are not responsible and to introduce an element of materiality that was missing from the original version such that to be a major change it must now be “reasonably considered as significantly and substantially affecting the size appearance or value of the home (including the internal layout)…”  .

Inspections

Inspections of new homes prior to move in continues to be an area of focus for the NHQB.

Under the recent changes, customers are now entitled to:

• Conduct the inspection themselves
• Appoint a suitably qualified professional to conduct the inspection on their behalf.

Previously this right was restricted to qualified inspectors, although customers have always been entitled to visit the home before completion.

You must make it clear to the customer that the inspection process has been designed with professionals in mind and isn’t required to be adjusted for unqualified purchasers conducting their own inspection.

The inspection must use the standard NHQB Pre-Completion Inspection Checklist, regardless of who conducts it.

After sales care

You must now give customers a Schedule of Incomplete Work which details what works around the Development are still to be completed, together with the best available timescales for their completion.

The new version of the Code makes it clear now that you are required to pay for the cost of alternative accommodation should purchasers need to be decanted from their homes to allow remedial works to take place.

Key takeaways and your next steps

• Update your staff training and guidelines as soon as possible so your teams understand the new sales process requirements
• Review and update your marketing materials to make sure they meet both the new Code requirements and the statutory obligations under the DMCCA.
• Check your pricing and sales options to ensure all pricing is transparent and that any time‑limited offers comply with the new 7‑day minimum period.
• Consider developing a clear policy or framework for assessing alternative accommodation, so you apply the new rules in a consistent and fair way.

How we can support you

If you have any questions about implementing the New Homes Quality Code, you can contact Simon Ingham, Nick Attwooll or Tayla Boote.

[1] Thinking of buying a new-build home? Beware the hidden costs and traps

[2] Consumers are shown an initial price for a good/service (known as the base price) while additional fees are revealed (or “dripped”) later in the checkout process. These “dripped” fees can either be mandatory (e.g., booking fees) or optional (e.g., seat reservation on a flight). See: Estimating the prevalence and impact of drip pricing – GOV.UK