Structural warranty services in relation to new homes undertakings
Undertakings given by the National House Building Council in relation to structural warranties.
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In 1995, the Monopolies and Mergers Commission found that a monopoly position existed in favour of the National House Building Council (NHBC). It also found that certain aspects of its Rules of Membership operated against the public interest, in particular by preventing NHBC’s Registered Builders from dual sourcing or switching to alternative providers of structural warranties without financial penalty. The Secretary of State for Trade and Industry accepted Undertakings from the NHBC to address this.
On 5 December 2017 the CMA accepted Superseding Undertakings from NHBC. These include a provision that NHBC shall not make any amendments or additions to its Rules of Membership which have the object or effect of preventing or discouraging builders or developers of new homes who are listed on its register from dual sourcing from or switching to the structural warranties of other providers.