New-build warranties provider NHBC has come under fire for allegedly imposing confidentiality clauses on home owners who make complaints or claims on their properties.

An investigation by The Guardian newspaper found that new-build home owners settling claims on their Buildmark warranty product were given non-disclosure agreements that restrict them contacting the media or neighbours about problems.

The newspaper quotes an industry source who advises new home buyers in the south of England, who said one family they were working with had received an offer from NHBC to buy back their troublesome new home and pay their removal costs as long as they did not disclose the agreement.

A spokesman declined to comment when asked by EYE if confidentiality clauses were still in use, but issued a statement that said: “Buildmark is an insurance product. Claims made are settled either by NHBC arranging for repairs to be carried out, or paying the homeowner the cost of doing so.

“When we make a payment, we ask the homeowner to sign a letter to acknowledge that the payment settles their claim. These letters do not include confidentially or non-disclosure clauses.

“Only in a small number of rare circumstances will we include a confidentiality clause on settling a claim. In line with standard practice in the insurance industry, and to protect commercial confidentiality, this would be in specific cases that are subject to a formal legal agreement or when NHBC has agreed to meet the costs of a claim over and above the Buildmark policy requirements.”