Complaints from new-build homeowners have more than tripled in a year. Defects and snagging continue to drive disputes with developers.

The New Homes Ombudsman (NHOS) received 1,802 formal complaints in 2025/26. That was up 204% from 593 a year earlier.

The increase came as more developers joined the voluntary scheme. Registrations rose by 26% over the same period, extending its reach across the new-build market.

More than 65% of UK new-home sales now fall within the scheme.

Ombudsman awards £215,000

The Ombudsman also issued substantially more final decisions during the year. The number increased by 236%, while homeowners won 82% of decisions, up from 78%.

Compensation also jumped during the year.

NHOS awarded buyers almost £215,000 during 2025/26. That compares with around £67,000 the previous year and represents an increase of 221%.

The Ombudsman also resolved more disputes before reaching a final decision.

NHOS settled 575 cases through its early resolution process, compared with 186 a year earlier. The process helps homeowners and developers reach an agreement without formal adjudication.

Defects and snagging drive complaints

Homeowners most commonly raised defects and snagging issues.

Defect-related enquiries increased by 162%, while snagging enquiries rose by 205%.

Cases ranged from cosmetic problems to more serious construction failures. Cosmetic complaints included poor plastering, painting and misaligned tiles.

More serious cases included missing cavity wall insulation and incorrectly installed fire safety equipment. Homeowners also reported defective party walls, substandard brickwork and acoustic problems.

However, NHOS said the original defect often did not cause the dispute to escalate.

Instead, its casework highlighted slow responses, poor communication and weak complaint handling. Delays to repairs could also turn relatively straightforward issues into prolonged disputes.

A third of new homes remain outside scheme

Despite its expansion, the scheme still excludes around a third of new homes sold in the UK.

The Ombudsman currently operates on a voluntary basis. Therefore, buyers cannot use its complaints service if their developer has not registered.

Nigel Cates, chief ombudsman at the NHOS, commented: “The rise in complaints reflects both more homeowners becoming eligible to use the Ombudsman 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.

“Buyers should have the same high standards of protection regardless of which developer they happen to purchase from, and this is particularly important as the government works to deliver 1.5 million new homes.”

Cates continued: “We welcome its commitment to putting the Ombudsman on a statutory footing and look forward to clarity on when that will happen.

“Our casework shows that relatively manageable problems can become lengthy disputes when developers are too slow to respond or put things right.

“A new home should be a positive experience. Most buyers will never need an ombudsman, and many problems can be resolved quickly when the developer responds properly.

“But when serious issues are allowed to continue, the impact on homeowners can be profound.

“Our advice for customers is before you reserve, check the developer and the protection that comes with the home, and look for New Homes Quality Code and NHOS coverage.

“Then get important promises in writing, inspect the final build carefully and keep a clear record if anything needs fixing.”