Other provisions New Build Warranties
At present, 10-year warranties are provided on new homes as a requirement to obtain mortgage finance rather than as a legal requirement. As part of the general aim of improving the safety and standards of buildings, this Act mandates provision of warranties in law.
	The Act sets a legal requirement for the developer of every new build home to provide a warranty for the benefit of a purchaser. The warranty must meet minimum standards, which will be set in regulations. The warranty must be for a minimum term of no less than 15 years.
	The Act also enables the Secretary of State to set out in regulations i) the level of financial penalties that could be issued to developers selling new build homes without a compliant warranty, including provision for interest or additional penalties for late payment and ii) the process for considering and issuing such penalties and the right to appeal.
	The minimum warranty term of 15 years mirrors the extended limitation period to bring litigation under section 1 of the Defective Premises Act 1972 and section 38 of the Building Act 1984.