The number of formal complaints made to the New Homes Ombudsman (NHOS) has more than tripled in the space of a year, as more developers have signed up to the higher standards and coverage of the Ombudsman, according to new data.
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 number of final decisions made by the Ombudsman increased by 236%, with the proportion of decisions upheld in favour of the homeowner having increased from 78% to 82%.
The total amount of compensation awarded to those who had lodged a complaint increased by 221%, up from almost £67,000 in 2024/25 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.
However, the Annual Report shows that it is often not the initial defect itself which causes a complaint to escalate to the Ombudsman. 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.
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.
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.
Commenting on the data Chief Ombudsman at the New Homes Ombudsman Service Nigel Cates said: “The rise in complaints reflects both more homeowners becoming eligible to use the Ombudsman and greater awareness of the service. The majority of new homes are now covered by the Ombudsman, but around a third remain outside the scheme.
“Buyers should have the same high standards of protection regardless of which developer they happen to purchase from, and this is particularly important as the Government works to deliver 1.5 million new homes.”
He concluded: “We welcome its commitment to putting the Ombudsman on a statutory footing and look forward to clarity on when that will happen.”
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