Unfinished Housing Developments: Consumer Protection

Opened the debate

The hon. Member Helen Morgan raised the issue of unfinished housing developments in North Shropshire, highlighting a case at The Brambles where homes were sold despite incomplete infrastructure like roads and drainage systems, causing distress to residents due to raw sewage backing up into their gardens and financial burdens. She pointed out similar cases across her constituency where development was left uncompleted, leading to significant costs for both residents and local councils. Morgan proposed using section 104 and section 106 agreements with financial bonds to ensure critical infrastructure is completed before homes are sold, and urged the Government to consider requiring such bonds in all new developments to protect homebuyers from rogue developers.

Government Response

The Minister acknowledged the importance of protecting homebuyers from unfinished developments and highlighted ongoing Government efforts through legislation like the Levelling-up and Regeneration Bill, which aims to increase transparency and enforce build-out times. He encouraged local councils to use financial bonds in section 106 agreements where appropriate but emphasised the need for local discretion. The Minister also discussed plans to establish a statutory new homes ombudsman scheme to provide redress for homebuyers facing issues with their properties, aiming to improve accountability and consumer protection in the housing sector.