§ Mr. EdwardsTo ask the Secretary of State for Trade and Industry what representations he has received regarding the National House Building Council 10-year warranty for new houses; and if he will make a statement.
§ Mr. RedwoodA Monopolies and Mergers Commission —MMC—report on structural warranties for new homes was published in March last year. This recommended changes to the rules of the National House Building Council—NHBC—warranty scheme, to allow builders belonging to the scheme to place some of their new homes with a comparable alternative scheme. On publication my right hon. Friend the Secretary of State for Trade and Industry invited representations from interested parties on a number of alternative remedies. In response he received more than 100 letters from builders, trade associations and professional bodies, consumer organisations and members of the public, some supporting and some opposing changes to the NHBC scheme.
The MMC report recognised that the NHBC had over a number of years made an impressive contribution to the improvement of housing standards and provision of safeguards for purchasers of new homes. However, it also 245W found that competition had started to bring substantial benefits. Discussions with the NHBC and other interested parties have been continuing with a view to finding a solution which brings the benefits of increased competition without prejudicing consumer interests.