Part 5: Other provisions about safety standards, etc. New Homes Ombudsman scheme Section 140: Power to require persons to join scheme and provide information Background
This is a new provision.
	There is presently no statutory obligation upon developers of new build homes specifically to belong to a redress scheme, nor a way to enforce the requirements. This represents a significant gap for purchasers of new build homes.
Example
The UK Government will work with the Scottish, Welsh and Northern Irish administrations so that the regulations are operable in England, Scotland, Wales and Northern Ireland. For example, this would take into account the different legal regimes in different territories.
The Government’s intention is for consultation with the Scottish and Welsh Ministers, and the relevant Northern Ireland department, to be conducted at an early stage and before decisions have been taken. This may include a UK Government and devolved administration working group to facilitate joint working between these authorities.
Once the regulations have been approved, developers of new build homes within scope will be required to belong to the New Homes Ombudsman scheme. Developers may have to remain members of the scheme until such a time that they are no longer bound by scheme’s terms. The Government may want developers to be able to confirm or prove their membership (for example, by displaying a copy of their membership in their sales offices).
This section provides for regulations to be laid regarding the enforcement of any duties introduced by this section. Developers that breach requirements may face civil sanctions. The regulations must allow for a right of appeal against such sanctions.
In addition, this section allows the Secretary of State to designate the person to impose the sanctions or investigate suspected breaches of requirements. This could, for example, allow a new or existing body to undertake the enforcement role, and this section allows the Secretary of State to make payments for that body to undertake the role. The power is flexible to take into account both the existing and new regulatory environment.
When the Secretary of State chooses to make regulations, a draft of the regulations would be subject to approval by each House of Parliament.