Complaints to the New Homes Ombudsman have increased threefold in the past year, with a higher proportion of cases being decided in favour of homeowners, according to the organisation’s latest annual report.
The New Homes Ombudsman Service received 1,802 cases in 2024/25, up from 593 the previous year. The proportion of decisions favouring homeowners rose from 78% to 82%, whilst total compensation awarded increased from approximately £67,000 to nearly £215,000.
Rising developer participation
The number of developers registered with the ombudsman service grew by 26% during the period, from 461 in April 2024 to 581 by the end of 2025. Cases resolved through early resolution also increased from 186 to 575.
Nigel Cates, Chief Ombudsman at the New Homes Ombudsman Service, attributed the rise in complaints to increased eligibility and greater awareness of the service. “The majority of new homes are now covered by the Ombudsman, but around a third remain outside the scheme,” he said.
Market implications
The findings come as UK housebuilder formations fall to their lowest level since 2022, raising questions about quality standards in the sector. The ombudsman identified issues ranging from poorly fitted tiles and defective plaster to more serious structural and safety failures, including missing cavity wall insulation and incorrectly installed fire safety equipment.
A recurring pattern in casework showed that manageable problems often escalated into prolonged disputes due to slow or inadequate responses from developers. The report noted this as a significant factor contributing to the increased caseload.
Statutory status pending
The ombudsman was established in 2022 with the intention of making membership mandatory for developers, though this has not yet been implemented. Cates welcomed the Government’s commitment to putting the ombudsman on a statutory footing as it works to deliver 1.5 million new homes, though no timeline has been confirmed.
With approximately one-third of new homes still outside the scheme, the data highlights ongoing concerns about consumer protection standards in the new-build sector. The increased compensation awards and higher proportion of upheld complaints suggest persistent quality issues that may affect buyer confidence in the market.
