New build delay- compensation

Claire1257

I received £1000 compensation when my build was delayed but the delay was significant (8 months!). They offered £500 once the delay reached 6 months and eventually upped it to £1k just before completion. There are still empty properties now though so I imagine they did this because they didn't want to lose any buyers. If you're buying on a popular development they probably wouldn't do this.

wimbatel

I bought a new build flat back in 2017 from Taylor Wimpey.
They can offer compensation but it is rare.
Mine was delayed by 7 months or so, although I had no long stop date in my contract. It kept getting pushed back month by month. I knew delays could happen but 7 months seemed like alot at the time (I was a first time buyer). Now I know it can be quite common!
It caused no end of issues as my rented contract ended, I had to find storage for my belongings, ended up having to rent a room from a friend and things got quite sour with her as I outstayed my welcome, we thought I would only be there for a month or so but it was alot longer. I also didn't have any family nearby to stay with.
I ended up speaking to their head of sales for the area - to be fair she was really nice. She ended up offering to allow me to use a garage on the show home to store my belongings in, and they also ended up paying my solicitors bill in full as compensation (which was over £1200).
The sales manager also then sent a lovely bunch of flowers to my flat which arrived the day after I completed, apologising for the delays and wishing me happiness in my new home.
So compensation is possible ... but not guaranteed, they have no obligation to offer you anything. I didn't think they would help out at all but they did. No harm in asking and seeing what response you get?

xylophone

A few weeks back, I was taking a short break in a very comfortable hotel and got chatting to a couple of the other guests.

They were an elderly couple who were waiting to move in to a brand new retirement apartment nearby but the build had been badly delayed.

Apparently the developers were paying for a three month stay in the hotel, all found!

RelievedSheff

Abbey10 wrote: »

I agree we shouldn't have moved out. However, we were given assurances by the developer and had resistance from our landlord and did move out. Hindsight is a great thing.

My question is what would be a reasonable expectation given that the developer has implied they will be giving compensation. Should we take what they offer even if its less than what we will be out for accommodation for this 2 week gap? Should we ask for them to cover our additional expenses for the delays?

Given that they don;t have to offer you anything then just take whatever they offer. Don't expect it to be much though. It certainly won't be enough to cover a hotel for a couple of weeks. More than likely it will be some meal vouchers.

Have a look on Air BNB or Booking.com to find some temporary accomodation closer to where you work. You might find it quite cheap at this time of the year.

AdrianC

Abbey10 wrote: »

I am looking for some advice regarding seeking compensation for delays in our new build. We reserved a house for £350k in July 2019 and exchanged on 4th Sep 2019. The house was by and large built when we reserved, the roof was on the majority of the house, with only the roof over one room pending. In July we were told to expect to complete in October/November 2019.

What's the long-stop date?

We were first informed of delays late October...

And yet...

We moved out our rental accommodation in November- our AST was finished

Why on earth did you do that? ASTs don't "finish". The fixed period might have been, but why not go onto statutory periodic?

the developer gave us reassurance re the expected completion date

Yet the property was barely at the weather-tight stage at the time...?

and the landlord would not agree a rolling contract.

They don't need to. It happens at the end of the fixed period automatically. They need to give you two months notice if they want you to leave - and even when that expires, it will take them months to actually regain possession... assuming the s21 notice was valid, which many aren't.

We have just found out we are delayed again and due to complete near the end of March.

And what's the long-stop date?

These delays have put us under significant difficulties/stress. As they keep coming in drips its really hard for us to plan and we constantly feel disappointed.

Such is the risk of buying off-plan, especially before the building is weather-tight, and facing the onset of winter.
.

Our finances are taking a hit.

But you don't have the outgoings of your rent, and you aren't paying a mortgage...

All of this is eating into our pot of money for furnishing

I thought your furniture was all in expensive storage...?

decorating the house.

It's newly built. It's freshly decorated when you move in.

Anyway, a pot of paint and a brush is cheap.

The developer advised they will look at what they can offer to help us out. What level of compensation would be reasonable here?

A small goodwill gesture is the most you can expect. If the long-stop date gets reached, you can walk away from the contract and get your exchange deposit refunded.

Would it only be reasonable to expect our direct costs to be covered or to ask for some more due to the stress/inconvenience?

It would not be reasonable to expect costs incurred through your own decisions to be covered, no.

Abbey10

Thank you for all of the replies. I am not sure how to answer each individually so will cover the main questions in this reply.

There is a long stop date of 17 April 2020.

Our monthly outgoings are approx £150 more than what they were when we rented on our own. Our friends rent is more than what ours was (2 bed house in a very nice area vs a flat in a nice area). Council tax is a lot more. Utilities are more. We have higher commuting costs. We are paying for storage + more expensive insurance.

Even though its a new build we do need to furnish and decorate. We need some flooring and blinds/curtains. We of course have some furniture, but are going from a small flat to a 3 bed house, so would like to finish the additional rooms/space. We have a pot of £ to do everything we need and want to do.

My point is/was that these delays are costing us £150 per month plus the additional, unexpected expense of a hotel/air B&B. With hindsight, we shouldn't have left the flat, however, we did so with the reassurance from the developer. They clearly appreciate this point and the acknowledge the impact of the delays as they have offered us upgraded flooring for the areas we needed to do ourselves plus a few other small upgrades. This will help balance out the cost of accommodation

AdrianC

Abbey10 wrote: »

There is a long stop date of 17 April 2020.

So if you haven't completed by then, you get to walk away with your deposit back in your pocket.

My point is/was that these delays are costing us £150 per month
...
With hindsight, we shouldn't have left the flat

Indeed. You did so by choice.

however, we did so with the reassurance from the developer.

And you have no proof they told you anything but the accurate situation, as of that point in time, in all good faith. Delays happen. Sometimes, they're outside the developer's control, sometimes they're down to an error in the office or on site. Them's the risks of buying off-plan.

They clearly appreciate this point and the acknowledge the impact of the delays as they have offered us upgraded flooring for the areas we needed to do ourselves plus a few other small upgrades. This will help balance out the cost of accommodation

Great - a goodwill gesture. Good business on their part.

foxy-stoat

If your share of the rent is more then not much you can do.
Council tax, you shouldn't have to pay any council tax, unless your friends have it paid by the local council, as they would be paying it anyway.
I would assume you are only paying for additional electric/gas/water/waste....it would be a bit mean if they asked your to contribute to their standing charge, as they are paying that anyway.

Maybe you need to put off your likes and postpone painting anywhere if your budget pot is that small.

eddddy

Abbey10 wrote: »

There is a long stop date of 17 April 2020.

So is your mortgage valid until that date?

Mortgage offers often only last 6 months, and I'd guess you got your mortgage offer sometime before you exchanged contracts on 4th Sept 2019.


e.g. If your mortgage offer expires after 6 months on 4th March 2020, and the lender won't extend it - the financial consequences could be dire for you, if the house is then ready sometime between 4th March and 17th April.

ethank

Quite often they will only compensate for any losses you incur.