Home buyers should be given the right to retain 2.5% of the cost of a new-build for six months to deal with any snagging, campaigners claim.

This is the latest call from the HomeOwners Alliance.

It says this would provide a builder with incentive to repair faults that emerge or could cover the cost of the repairs if the builder doesn’t do them.

The group is also calling for buyers to have the right to inspect a newly built home before moving in, but without prejudice. Often builders selling their properties ‘off plan’ refuse to let buyers actually see the property after it is completed but before buying it.

It is part of a wider campaign on reforming the new-build sector. Other suggestions include the creation of a mediation service, standardised contracts and stopping developers from being able to recommend their own solicitors for buyers.

Paula Higgins, chief executive of the HomeOwners Alliance, said: “It’s great the Government is committed to more house building. But we don’t just need more houses, we need better quality houses that are built not just for this generation but future generations.

“Too often, new homes are built to low standards, with small rooms, paper-thin walls, inadequate heating and poor quality workmanship, with other problems that emerge only after moving in.

“Consumer protection is limited, with people having more rights if they buy a toaster than if they buy a house.

“Our proposals will go a long way to give new-home buyers peace of mind.”