The Home Builders Federation (HBF) has announced an amendment to its voluntary Code of Conduct to provide guidance to its members to ensure transparency of new property pricing, taking account of any incentives or discounts being offered. Stewart Baseley, Executive Chairman of HBF says: “This amended code will provide assurance to homebuyers and lenders alike that discounts and incentives are totally transparent." “It has been drawn up following extensive consultation with HBF members and the lending industry over the past few months." “It is vital that the industry does all it can to help potential home buyers secure support from lenders to assist as many customers as possible to realise their wish to purchase a newly-built home.” - Ends - Notes to Editors: 1. The Home Builders Federation (HBF) is the principal trade federation for private sector home builders and voice of the home building industry in England and Wales. The HBF’s 300 member firms account for some 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk 2. Following concern that the valuation and price paid for new-build homes may not always be completely transparent because of sales incentives offered by a small minority of developers, HBF engaged in discussions with the Council of Mortgage Lenders to develop amendments to the Homebuilder Code of Conduct which ensure that discounts and incentives are transparent. 3. The new code, which takes immediate effect, states the following: i. The homebuilder will provide customers with a sales reservation confirmation showing the gross sale price and any sales incentives, whether in cash or otherwise. ii. All sales incentives which are cash discounts or cash deductions reducing the sale price will be disclosed on both the sales reservation form and the sale contract, with the resulting balance shown as the net sale price. iii. The sales reservation will be made available to the buyer’s conveyancer as a matter of course and to the lender and/or valuer on request. iv. All payments to third parties relating to the sale, above five per cent (5%) (including introductory and commission payments, but excluding payments to instructed selling agents) will be disclosed to the buyer’s conveyancer. v. Any sales incentives provided to the customer after the date of reservation but prior to exchange of contracts will be notified to the buyer’s conveyancer who is under a duty to disclose them to the lender. For media information, please contact: Paul Boulter 020 7421 6140 07814 506378 paul.boulter@portlandpr.co.uk
