UK: Poor quality new homes don’t solve housing shortage

Housing shortages abound throughout the modern world, and in the UK, the situation is not much different than here in the US. Also not much different: substantial claims of defective construction due to cut corners in an effort to meet demand.

In fact, the country’s National House Building Council, which provides 10-year warranties covering most newly constructed homes, reportedly paid out £90-million (US$110,852,100) to homeowners in 2015-2016. According to the Guardian, this is nearly triple the amount paid to resolve claims from a decade before. Here’s more on the story:

This week the Guardian reported that Bovis is set to award people who live in some of its newbuild homes a total of £7m in compensation, in response to claims that houses have faulty plumbing or wiring, missing insulation, and other serious defects. Some people say they were offered money to move into homes that have not been completed. When the news broke, the Bovis share price fell by 10%, wiping £100m off its stock market value.

This is just one part of a bigger story of complaints about Britain’s construction giants – and what happens when the rush to build leads to corners being cut and houses left either unfinished or deeply defective. On social media there are hundreds-strong groups telling their personal stories: “The toilet leaked into the living room and when my plumber came to fix it he found the toilet had not been installed correctly”; “having my kitchen ripped out for the second time”; “no insulation in roof”; “mould growing all over the house … too dangerous too live in as I have asthma”.

Meanwhile, the pressure is on to build as many new homes as possible. Even if it is behind on its targets, the government still wants a million to have been put up by 2020. The year 2015 saw a big jump in completed builds: 142,890 homes were finished, a 20% year-on-year increase. Last year the number was put at more than 150,000.

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