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Nearly nine in ten owners of new-build homes support the idea of a ‘snagging retention’, amid a rise in the number of buyers reporting problems with their homes.
Recent figures from the Home Builders Federation show that the number of customers supporting snags increased from 93% in 2015 to 99% in 2018.
Now the HomeOwners Alliance has called for a snagging retention system where buyers withhold funds to housebuilders until they rectify any faults.
It follows a survey by the HomeOwners Alliance and BLP Insurance, conducted by YouGov, which found that 88% of new-build homeowners support such an idea, long with 76% of UK adults in general.
The organisation wants to see homeowners able to hold back a minimum 2.5% of payment until they’re satisfied with their home. The survey results follow the news that Persimmon Homes will be the first to introduce a ‘snagging retention’ of 1.5%.
Kim Vernau, chief executive, BLP Insurance said: “Housebuilders should take careful note of the 88% of new build homeowners who believe that there should be a snagging retention process otherwise they will alienate their core customers.
“Given the widespread publicity of new homes being handed over with significant snagging errors, house builders need to urgently address their quality assurance processes. If the average consumer can draw up a list of errors and problems with their new home, why do qualified professionals fail to spot them? The purchase price of a new home is one of the biggest financial outlays that someone will ever make and they need the reassurance that the final finish is of the highest standard.”
Paula Higgins, chief executive, Homeowners Alliance, said: “More and more buyers of new build homes are being left with an unacceptable litany of ‘snags’ and defects. These can range from poorly secured fixtures and fittings to shoddy tiling to major roof leaks and faulty drainage.
“Our HomeOwners Alliance ‘snagging retention’ campaign will incentivise developers to deliver decent, correctly-finished homes before buyers move in as well as to come back swiftly and deal with any emerging snags or defects. Sadly, money talks – if we want better quality homes, we must let homeowners hold back cash.”
But won’t that lead to an increase in house prices since house builders could simply add the snagging retention on top?
Subcontractors do the same thing when they price. If the retention is 5%, they just add 5% to their tender price. If they end up getting the retention, it becomes a bonus!
House builders could do exactly the same! Home buyers would find themselves holding back ‘their’ own cash. Just thinking . . .
As a Clerk of Works, I personally think that the Principal Contractor should not be paid anything until the property is signed-off as fit for purpose with no outstanding snagging items, not just within the premises, externally too. This should include drainage surveys, road surfaces, footpaths and landscaping.
This procedure is being adopted more and more ensuring that the developers design the buildings and construct them properly, allowing new homeowners to access their individual homes without having to negotiate the building site.
Am I the only one seeing the irony? This all makes sense so where is the logic for looking to eliminate retentions on commercial projects where the issues can be much greater, not least due to the fact commercial buildings are more complex and often non-repetitious? Decent contractors should not fear properly managed retentions and the cost of delayed receipt of the money is relatively small (and is inevitably included in the pricing).