The number of formal complaints made to the New Homes Ombudsman Service (NHOS) has more than tripled in the space of a year.
Its latest annual report shows that the number of complaints received increased from 593 in 2024/25 to 1,802 in 2025/26, an increase of 204%.
Over the same period, the proportion of decisions made by the Ombudsman in favour of home owners increased from 78% to 82%.
The total amount of compensation awarded to those who had lodged a complaint increased by 221% to almost £215,000 in 2025/26.
At the same time, the number of cases resolved through early resolution, where NHOS works with homeowners and developers to agree a way forward without requiring a formal Ombudsman decision, increased from 186 to 575.
Issues related to defects and snagging in new homes were the most prominent issues raised in enquiries by consumers across both years.
Defect-related enquiries increased by 162% while snagging enquiries rose by 205%.
Snagging and defect related cases range from cosmetic defects in new homes such as misaligned tiles, poor plastering or painting finish through to more serious structural and safety-relevant failures, including missing cavity wall insulation, incorrectly installed fire safety equipment, problems with party walls affecting acoustic performance, and substandard brickwork.
NHOS says: “A consistent pattern across NHOS casework is that relatively manageable problems can develop into prolonged and entrenched disputes because of slow or inadequate responses from developers, poor communication, weak complaint handling and delays in putting problems right.”
Among the notable cases highlighted in the report was one involving persistent damp, mould and structural problems in a new build property.
The Ombudsman awarded the homeowner £6,158, including £3,000 for distress and inconvenience and reimbursement of independent survey costs, alongside directing the developer to undertake a programme of remedial works.
More broadly, between 2024/25 and 2025/26 the number of developers registered with the Ombudsman scheme increased by 26%, with over 65% of all new homes sold in the UK now covered by the scheme.
Homes become protected by the scheme if they are reserved after the developer has registered.
That still leaves around a third of all new homes sold outside the remit of what is currently a voluntary Ombudsman scheme, leaving many new homeowners unable to access the support and adjudication service it provides when something goes wrong.
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