BUILDERS SLATED IN HOMEBUYER SURVEY

Are new homes all they are cracked up to be - and worth the 15% price premium which homebuyers usually pay to get one? The latest survey of customer satisfaction suggests many buyers have serious doubts after moving in.

Although the National Customer Satisfaction Survey from The Housing Forum is funded by the Department of Trade & Industry (DTI) and funded by taxpayers, very few taxpayers are likely to read about it. The survey, launched with huge publicity in 2000, has been almost buried this time, with hardly any newspapers bothering to report it.

In fact builders in Southern England have admitted serious shortages of skilled workers for years - and the survey confirms that many customers are sharing their headache.

Says the report: "Experience of defects and/or snags in the home has increased (90% compared with 84% in 2001 and 81% in 2000). However, satisfaction with the overall service provided in dealing with these problems remains positive (51% satisfied), and only slightly lower than previously (53% versus 54% in 2000)."

The report adds that while new homes have a positive image, "owners are generally less positive about their particular housebuilder... Fewer agree than disagree that they would want to buy another home from the same housebuilder."

The Office of the Deputy Prime Minister is also involved in drawing up the report - and close readings suggest many buyers are inclined to throw a punch, like fiery Mr Prescott, when niggles aren't sorted out.

Although many leading builders claim to spend small fortunes on customer care, production standards have actually slipped since the last survey in 2001. The number of buyers ready to recommend their housebuilder to another potential customer is down too.

The official spin put on the survey is that more complaints are arising because the fast-rising price of new houses - £173,000 at the last count - means more demanding customers.

Several companies are cited for quality and service standards "below industry average": the list includes Barratt, David McLean Homes, Fairview New Homes, North Country Homes, Rialto, and Wilcon - now part of Taylor Woodrow.

Cheltenham-based Westbury, a South and South-West England developer, also scores poorly on satisfaction ratings - though it is a leading pioneer of the production line, pre-fabricated methods of housebuilding intended to cut problems on-site.

Barratt group chief executive David Pretty answered the criticism: "We are naturally disappointed to appear marginally below average because we know we are much better, as evidenced by numerous other indicators. We have also just been judged Britain's Best Large Housebuilder and have won every major industry award in recent years.

"We are, however, determined to continue to improve and last September we introduced a major new customer care initiative which has been well received by buyers. Unfortunately, this came too late for the survey, which only included those buying between eight and 22 months ago."

Builders named as "good guys" - top marks for quality and service - are Bloor, Crest Nicholson, Croudace, George Wimpey, Jelson (a regional builder in the East Midlands), and retirement homes `king' McCarthy & Stone.

At coack-a-hoop Croudace, chief executive Andy Yallop declared: "This sort of accolade is not won easily. For 50-plus years since the company started, we have striven to improve product and service to maintain customer satisfaction."

Based on more than 10,000 interviews, the report suggests that although new homes are sold by designer-style kitchens, bathrooms and bedrooms, too many buyers grumble about building work or after-sales service.

It comes months after another survey found high density urban housing development - a cornerstone of Government policy - is creating huge parking problems.

Says Housing Forum Chairman Hugh Try: "Overall satisfaction rates with quality, construction and finish of new homes are still extremely high", he said. "I do believe we are seeing a more educated customer and this is raising the bar for UK housebuilders, who now must strive to meet increasingly high expectations.

"Our sector has made great strides in recent years and is meeting ambitious targets for new homes in key areas of the country. The challenge now is to look to other industries and replicate robust methods of after-sales service to achieve a truly world class housebuilding sector."

Nobody disputes new homes LOOK better than a decade ago - partly because they are no longer built mainly for penny-pinching first-time buyers. More builders use architects to get schemes past more critical planners and local councillors.

But though builders talk of emulating the transformation of service and quality standards in the car industry, customers are becoming more voluble when standards slip.

Inspector Home, a self-styled housing standards pressure group, will submit a 5,000-name petition to MPs demanding new homes are covered by statutory consumer protection law. Its website calls for Government action to improve consumer protection and strongly criticises the warranty intended to guard against defects in the first 10 years.

Inspector Home also claims that its survey shows the average UK new home has 118 defects on completion.

Showhouse magazine quotes Inspector Home managing director Stephen Nancarrow: "In this day and age, we find it totally unacceptable the quality of new homes is so low."

INFORMATION: The Housing Forum has produced a consumer guidance leaflet,` What you need to check when buying a newly-built property - 10 top tips on key issues to consider'.

PUT YOUR FEET UP IN THE CITY

Worried by the thought of too much peace and quiet when you retire? In that case, head for the City of London, where agents Frank Harris have a range of one and two-bedroomed apartments between £162,000 and £218,000 for buyers who must be at least 60 years old.

Just around the corner from the Barbican, with Marks & Spencer, Tesco and Safeway all within walking distance, the scheme includes guest bedrooms because agents Frank Harris are convinced other "greys" will want to whoop it up within the Square Mile.

Or are they all on the lookout for share tips to boost their pension?

INFORMATION: Frank Harris & Co (020 7600 7000).

REPORTS POINT TO ROSY START

There's rare unanimity among the surveys regarding the residential property market in January: money is pouring in, and prices are still going up.

You won't find a single dissenting voice in this line-up of bullish reports across the country:-

**TEAM group of independent agents - 558 offices nationwide - says the average price declined slightly to £176,693 in mid-January. But South Wales, South Hampshire and East London bucked the trend with big rises.

**Hamptons International - a Southern England agency chain - expects a surge of sales in the first quarter of 2004, with prices rising 5-7% and viewings already up 25%, (51% in London). From April onwards, more properties will come on sale, to curb price rises.

Says Karen Salter with Hamptons International in Gerrards Cross, Bucks: "The message for sellers is to maximise value early this year."

Hamptons' man in Central London, Marc Goldberg, confirms: "We encourange vendors not to delay in placing properties on the market. There is no guarantee demand will remain this high, if rates continue to rise, as predicted."

**Agents DTZ Residential tips Birmingham for future growth - although local director Andrew Spittle admits massive rises of 26% in 2002 and around 15% in 2003.

Spittle says that big business in Birmingham in the next 12 months is going to be studio and one bedroomed apartments to be released on the market below £150,000. As space to develop runs out in the city centre, attention is switching to other districts including Jewellery Quarter, east Side markets, Digbeth and the Gun Quarter.

Andrew Spittle also says that 50% of recent sales have been to investors - with the prospect of demand getting stronger as Gordon Brown's promised REITs (Real Estate Investment Trusts) allow more investment in residential property.

**Rightmove, self-styled number one among UK property websites, estimates annual house price rises are back into double figure percentage for the first time since Summer 2003.

Regions rising strongly in January, says rightmove, included West Midlands, the North , Greater London, Wales, North-West, East Anglia and South-East. Falling prices were noted in East Midlands, Yorkshire/Humberside and South-West.

**Bradford & Bingley Estate Agents says the number of buyers registering in the first month of the year was up 6% on January 2003 - and sales agreed, by the same yardstick, was up 25%.

B&B fears a possibly supply logjam - unless more owners are persuaded to put their homes on sale in the next few weeks.