NHBC warranty and certificate explained

There’s nothing quite like a brand new home. Newly-built, freshly-painted, with all the mod cons.

But sometimes, there might be a few snags after you’ve moved into a new-build home. This is where the National House-Building Council (NHBC) comes in.

Their purpose is 'to raise standards in house building by championing high-quality homes and protecting homeowners'.

They are the UK’s leading independent provider of warranty and insurance for new-build homes, and they do this through training and quality services, as well as assessing, inspecting and directly insuring new homes registered with them.

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So the NHBC offers warranty and insurance for new-build homes, which means that you’re unlikely to pick up the bill for certain issues that may crop up over a particular time period.

It’s not dissimilar to a warranty that you might get when you buy something new, such as a dishwasher or car.

In order to be protected by NHBC, the builder needs to be signed up to the scheme and build the home in line with NHBC requirements.

You can look through NHBC’s builder register here to see which builders have joined the scheme.

Buildmark is the name of NHBC’s 10-year warranty and insurance cover for new-build or newly-converted homes. It is divided into different sections:

• protection for your deposit between exchanging contracts and legal completion: this kicks in if the builder becomes insolvent

• two-year builder warranty: the builder handles any problems during this time. If they fail to do so, NHBC may be able to step in and help. It offers an independent resolution service if your builder doesn’t meet their obligations

• insurance against certain problems once the warranty ends: this lasts until the end of the policy, usually eight years. The parts of the property that tend to be covered include: • roofs • flues and chimneys • external walls • internal stairs • glazing • foundations.

Other Buildmark products include:

• Buildmark Choice for homes developed for rent or shared ownership

• Buildmark Connect for commercial buildings in mixed-use developments.

Established in 1936, NHBC is the UK's leading provider of warranty and insurance for new homes. Its Buildmark scheme covers around 70-80% of new homes built in the UK, protecting around 1.5 million homes, according to a Building Safety Bill parliamentary document published in 2021.

But NHBC is not the only firm to offer new-build home warranties. Other well-known names in the industry include Local Authority Building Control (LABC) and the Federation of Master Builders (FMB).

They all offer homeowners protection when living in a new-build home. That said, each one will have its own small print so it’s worth digging into the details.

Buildmark paperwork tends to include the insurance certificate, the insurance policy number and the policy booklet with all the small print. It’s really important to read all the paperwork and understand what it means for you.

The cover starts on the date of the certificate, this is the date when the NHBC has agreed that the property complies with NHBC requirements, and lasts for 10 years.

The solicitor or conveyancer normally hands over the insurance certificate and other NHBC paperwork to the new homeowner when the sale crosses the line.

It’s worth noting that Buildmark covers the property, rather than the person. So that means if you sell your home within the policy lifetime, you can normally pass the remaining cover onto the new owner. It’s why having protection from the likes of NHBC could help a sale go through.

So if you’re selling your new-build home within the policy lifetime, it’s a good idea to have these documents ready to pass on.

If you do you have cover from the NHBC but have lost your documents, you can track down your policy number and download a copy here.

If you can’t find your policy number, then it’s best to contact NHBC’s customer services for help.

If your house was built recently but without cover from the NHBC or another similar provider, you may still be able to sell your home.

But bear in mind that lenders normally require this type of cover to approve a mortgage. And buyers will most likely want it for their protection and peace of mind too.

Do you need an NHBC certificate to get a mortgage?

Typically lenders do require buyers to have a reputable new-build home warranty in order to give a mortgage the green light. That said, every lender has different requirements so it’s best to check first.

NHBC says that Buildmark is recognised and accepted by all new-build mortgage lenders.

How long does an NHBC certificate last?

If you’re the first person to own the property, Buildmark protects you from the moment you exchange contracts until the end of the policy. The builder warranty lasts for two years. And once that expires, NHBC provides insurance, typically for eight years. As always, it’s a good idea to check the paperwork first though.

If you’re selling your home with cover in place, the new owner will be protected for the time that is left on the policy.

How much does the warranty cost?

Builders are registered with the NHBC and they pay for the Buildmark certification. You, the homeowner, don’t foot the bill.

What is not covered by NHBC?

The policy offers protection for particular problems. These include issues with the property’s foundations and structure.

But it’s important to look through the policy document to see what is and isn’t included. NHBC’s Buildmark cover won’t usually protect you for general wear and tear or damage caused by fire or smoke, for example.

It also won’t protect you where you’ve got other cover in place, such as buildings or contents insurance or warranties for white goods.

Find out more about what's covered and what isn't covered with the NHBC.