“Bovis Homes bracing for investor backlash over plans to hand bonuses to bosses of up to 200% of their salary”

“Bovis Homes is bracing for an investor backlash over plans to hand bonuses to bosses of up to 200 per cent of their salary.

Shareholders will have the chance to vote on the proposal today as they meet to decide on the housebuilder’s £1 billion takeover of the residential arm of construction firm Galliford Try.

Backlash: Shareholders will have the chance to vote on the pay proposal

The acquisition will make Bovis Britain’s fourth-largest housebuilder, potentially producing up to 12,000 homes a year.

If the takeover and pay scheme is approved, bosses would be able to earn long-term performance share bonuses of up to 200 per cent of their salary – up from 150 per cent previously – as well as cash bonuses of up to 150 per cent of their salary – up from 100 per cent.

Bovis has said the pay deal is justified because the combined business will be trickier to run and that it is in line with the wider industry.

But shareholder advisory group ISS has flagged ‘significant concerns’ and urged investors to vote against the changes.”

https://www.thisismoney.co.uk/money/markets/article-7744319/Bovis-Homes-bracing-investor-backlash-plans-hand-bonuses-bosses.html?ito=rss-flipboard

Bovis can’t build footpath on Axminster estate “because there are tree roots in the way”

Owl says: so who designed this then, knowing the problem? Amd which planner didn’t spot it?

“Residents on a new Axminster housing estate say the lack of a pavement outside their homes is putting lives at risk.

They say mums with pushchairs and wheelchair users are being forced to cross a busy road used not only by residents but also heavy construction traffic.

Brian and Barbara White claim plans for the Cloakham Lawns estate, off Chard Road, showed a pavement outside their home at Cloakham Drive.

But council officials say what they deemed to be a footpath was, in fact, only a ‘service margin’.

And they say building a permanent pavement there would harm the roots of a tree on the adjoining open green space.

Mrs White said the situation was ‘an absolute nightmare’, with pram and wheelchair users having to cross the road to the pavement on the other side and then cross back again further down the estate to return to the right side.

“Our road is busy with normal traffic plus heavy lorries, diggers, bulldozers and forklifts. Bovis Homes will be building here for years. There is plenty of room to continue the pavement all the way on this side of the road.”

Mr White added: “There is going to be an accident before long. People are putting their lives at risk.”

Bovis Homes has recently put down a temporary footpath outside the houses but says it cannot build a permanent pavement because of the nearby tree.

A spokesman told the Herald: “The tree is a hybrid lime, which is a category-A tree and is protected by a tree protection order (TPO) and also by a root protection area (RPA).

“RPAs are designed to protect the trees’ root systems and provide sufficient rooting environment to allow the trees to continue to thrive.

“The RPAs prohibit groundwork, construction, development or storage activity within the designated area. The highway proposals obviously had to take that into account.

“The temporary footpath is in place while there is construction work going on, and this hasn’t required the more robust foundation work that a permanent footpath would, which would adversely impact the RPA.”

https://www.midweekherald.co.uk/news/axminster-residents-say-mums-with-pushchairs-are-forced-to-cross-a-busy-road-1-6188464

Two big developers consider merge

“Two of the UK’s biggest housebuilders have kicked off secret talks about ‎a tie-up just two years after a previous set of merger discussions broke down.

Sky News has learnt that Bovis Homes Group has approached Galliford Try in the last few weeks about a combination of a large chunk of their operations.

If consummated, a ‎deal would represent a fresh catalyst for consolidation in Britain’s housebuilding sector.

Bovis has a market value of just over £1.3bn, while Galliford Try, which owns the Linden Homes housebuilding brand, is worth roughly £550m.

Both are among the ten largest housebuilders in the UK. …

A Bovis insider‎ cautioned that it was unlikely to be interested in Galliford Try’s troubled construction division, which was responsible for a recent profit warning from the group.”

https://news.sky.com/story/bovis-approaches-rival-galliford-try-about-housebuilding-merger-11728118

“‘Our new-build [Bovis] home has 354 defects’ “

“Two years after buying their £325,000 house from developers Bovis, Craig Wakeman and partner Tracey Bickford are still waiting to move in after discovering their dream home was riddled with 354 defects, many of them structural.

The couple told BBC Radio 5 Live Investigates buying the house was “one of the worst decisions we’ve ever made”.

Nine out of 10 new home buyers surveyed by the New Homes Review found defects in their houses.

Bovis apologised that the family’s “customer journey with us has been so disappointing over the last two years,” and said it was “completely focused on putting right what has gone wrong”. …

https://www.bbc.co.uk/news/business-46302905

Rats in Cranbrook: developer denies drains are source

Owl noticed a big spike in searches for “Bovis Homes Victims Group” Facebook page – mentioned in a link on this blog recently – now it knows why …

However, the group was forced to close as it feared legal risks due to the nature of some of the posts on its site:

https://bovishomesvictimsgroup.co.uk/

A BBC Devon website report says:

“Residents in a new housing development in Devon claim they are “living in hell” following a “rat infestation”.

People living in the homes think the rodents use the drainage system in Cranbrook to enter the properties.

Homeowners have told the BBC it has been “stressful” and it has cost them “thousands of pounds” to deal with the problem.

Many are calling on the developer, Bovis Homes, for compensation.

[Bovis replied]:

“We undertook camera surveys and other works and there was no evidence suggesting that the cause of the rat infestation was the result of the design or construction. A pre-construction ecological survey found no evidence of rats or other vermin being present on the ground prior to the property being occupied. No such issues were raised with them during the two-year customer warranty period, or in the 18 months that followed.”

Bovis Homes

https://www.bbc.co.uk/news/live/uk-england-devon-45023099

“MP back plan for ombudsman to resolve new homes disputes”

“The government is under pressure to set up an independent ombudsman with the power to order housebuilders to pay out up to £50,000 or even reverse a sale, following reports of new-home buyers lumbered with defective properties.

A group of MPs and peers has called on the government to make it mandatory for housebuilders to belong to the proposed scheme, which would be free for consumers and offer a quick resolution to disputes. The scheme would be funded by a levy on housebuilders, with larger ones such as Berkeley Group, Persimmon, Barratt, Galliford Try, Redrow and Bovis Homes, paying more than small and medium-sized firms.

A report, Better Redress for Home Buyers, by the all-party parliamentary group for excellence in the built environment, highlights the confusing landscape buyers face when trying to resolve building defects, not helped by a plethora of warranties, housebuilding codes and complaints procedures.

It says the proposed ombudsman should be able to order payouts of up to £50,000 so buyers are not left out of pocket. Disputes over larger sums might have to be settled in court, but the report adds: “In certain extreme situations the new homes ombudsman should be able to reverse the sale.”

People have no idea that when they buy a new home directly from the developer, they have no access to redress.

The recommendations come after a scandal over the poor quality of new homes built by Bovis, while other housebuilders have also faced similar complaints.

A recent survey by the Home Builders Federation and the main warranty provider, NHBC, showed that 98% of new-home buyers reported snags or bigger defects to their housebuilder after moving in.

The parliamentarians have proposed a snagging app that would enable buyers to photograph defects and send them to the builder, monitor the progress of complaints and go to the ombudsman if needed.

Dominic Raab, the housing minister, said this week that the “vice-like grip” of the big developers must be broken to boost the building of affordable homes.

Lord Best, vice-chair of the all-party group, says: “Buying a new home is stressful enough, but buying a defective one, as we heard from witnesses, can take a toll on people’s wellbeing as they wrestle with a Kafkaesque system seemingly designed to be unhelpful.”

The proposed scheme would be modelled on the property ombudsman, to which all estate agents must belong. If they are struck off, they can no longer trade.

Katrine Sporle, the property ombudsman, says: “New homes should be covered by an ombudsman. People have no idea that when they buy a new home directly from the developer, they have no access to redress.”

The proposed scheme would cover the first two years following a house purchase when housebuilders are liable for defects, while subsequent problems would be down to the warranty providers.

The report says: “Affected homebuyers are exasperated not so much by the existence of defects but by a builder’s failure or even refusal to put them right. Submissions we received described how buying a new home had been ‘the worst decision of their life’; how it was like ‘going through hell’ as the complaint passed between housebuilders and warranty providers; and how fighting for redress was taking a toll on their health.”

The proposals have been presented to the ministry of housing, communities and local government as part of its consultation on a single housing ombudsman.”

http://flip.it/716e6t

New Facebook page: AvoidPersimmonHomes

A new Facebook page called “AvoidPersimmonHomes” has been overwhelmed with stories and pictures of homes which occupants are finding impossible to live in. At the time of writing it has 269 members.

https://www.facebook.com/groups/316825475386299/about/

This follows on from a similar page for Bovis homes which has 3,113 members
https://www.facebook.com/groups/BovisVictimsGroup/

“Bovis homebuyers offered ‘cash in return for positive feedback’, investigation reveals”

“Homebuilding firm Bovis Homes is at the centre of a new row after an investigation by The Independent found that some customers had allegedly been offered rewards in return for completing positive satisfaction surveys.
Last year the company was awarded a 2-star rating by the House Builders Federation after a well-documented series of failings that left customers living in faulty homes.

Now, nine homebuyers have said that Bovis representatives offered them rewards if they agreed to fill in the HBF customer satisfaction form, the results of which are used to inform the annual ratings.

Five customers say the incentives were offered in return for positive feedback, something Bovis adamantly denies.

The homebuyers spoken to by The Independent bought their properties at different Bovis developments between 2016 and 2018.

Charlotte and Michael Kenton, who purchased their home in Bedfordshire in June 2016, claimed their site manager offered them high street vouchers in return for positive feedback.

“He said it was directly linked to his bonus so if we were happy with the sales process we should give him 5 stars and he could ‘make it worth our while,” they said.

Another couple claimed a Bovis employee offered free turf and John Lewis vouchers in December 2017 if they gave good feedback on the HBF survey or if they let the Bovis sales representatives fill in the form themselves.

In a further example, a homebuyer who bought her property in Oxfordshire in January 2017, said she was offered vouchers if she gave a positive response to the question of whether she would recommend Bovis to a friend.

She said: “We filled out the [HBF/NHBC] survey, gave 1 star at most, but we were told we would be given £500 worth of vouchers if we recommended Bovis to a friend.”

Another homebuyer, who wished to remain anonymous, said her site manager told her in February 2017 he would extend her patio for her if she gave him a good review.

She told The Independent: “I was advised by the site manager that the feedback form was very important and if you scratch my back, I’ll scratch yours… he intimated that he would contribute towards turning a side garden into an extra parking spot if we looked after each other…”

In another instance, in February this year, a Bovis site manager sent a customer an email – seen by The Independent – confirming that the company would pay a month’s worth of household bills but appeared to require her to complete the HBF survey before sending copies of her bills.

The buyer was sent a cheque for more than £1,000 after she completed the survey.

The Independent understands that Bovis had advised the customer that the payment was compensation for inconvenience after the homebuyer’s kitchen was damaged (and not related to the survey).

Four other homebuyers, who have spoken to The Independent on condition of anonymity, were allegedly offered bottles of champagne, chocolates or contributions towards remedial work if they agreed to complete the survey.

Bovis stated that up until May 2016, it ran a programme offering customers incentives to complete feedback forms – irrespective of whether the response was positive or negative – but said the practice had been stopped.

Five of the nine homebuyers spoken to by The Independent claim they were offered incentives after Bovis told its representatives to change the policy.

HBF’s national survey of housebuilders was launched in 2005 in response to recommendations in the Barker Review of Housing in 2004 and results determine a house builder’s annual rating. Since 2013, ratings are based on just the one question: ‘Would you recommend your builder to a friend?’

In a statement, Bovis said it had made significant changes to its build quality and customer service, which had transformed the company. It added that it had a strict policy with regards to the HBF customer survey.

A spokesman said: “Currently more than 87 per cent of our customers across the country would recommend us to friends and family, representing a 30 percentage point improvement on where we were at the same time last year.

“There are strict rules around the management of the HBF customer survey and we are absolutely committed to adhering to those.

“In the current survey year, which started on 1 October 2017, we have so far received more than 740 surveys, and around 87 per cent of those returned would recommend us to family or friends.

“If there is any evidence that any one of those hundreds of positive responses – or any from previous years – were not returned according to the rules, then we would wish to see that evidence and we would investigate it thoroughly.”

In relation to the case in which £1,000 of a homebuyer’s bills had been paid, Bovis said it was investigating the claim that payment had been conditional on the customer completing her feedback form.

A spokesman said: “On this point, we are currently investigating one claim made by a customer to The Independent, where it appears that our processes and procedures have not been followed and the colleague involved has been removed from site while we make further enquiries.”

When new CEO Greg Fitzgerald took charge of Bovis – after the resignation of David Ritchie in January 2017 – he promised to ensure that the house builder was no longer “handing over crap or incomplete houses to customers”.

Mr Fitzgerald, who made the statement after Bovis was found to have been paying homebuyers as much as £3,000 to move into unfinished homes in a failed attempt to reach an ambitious target of completing 4,131 houses by the end of the financial year, served six years as a company director for the National House Builders Council, the UK’s main home construction warranty provider, prior to his appointment.

However, The Independent has been told by several homebuyers that problems with quality remain.

Allison Briggs, 49, said that her hi-spec washing machine was broken on the day she moved into her property on a development in April 2017.

When Bovis later replaced it, she claimed the whole house vibrated when was the washing machine was on.

She told The Independent: “I am living in a Bovis nightmare. I wish I could walk away.”

Another, who bought their property in January 2017, said they had experienced problems immediately. But when they approached Bovis, the house builder allegedly told them the house being situated on a corner caused the issues.

They told The Independent: “We raised the issue again with Bovis and yet again we were told every excuse possible.”

In a statement, Bovis said: “We are committed to continuing to drive through these improvements in our business and to deal with any customer issues by our home warranty.

In those rare instances where items might be disputed, then we welcome the involvement of external agencies, such as the NHBC, to objectively assess the issues, and we are committed to meeting all of our obligations in these instances.”

“We apologise to any customer who did not move into the home they deserved in the past, but we are concerned that using isolated historic case studies as a reflection of our current performance misrepresents the business and will have a negative impact for those thousands of satisfied Bovis Homes customers who are not being contacted by the media for their experiences of buying a new-build home.”

Buyers across the UK claim the house builder sells properties that are “not fit for purpose”, with some residents reporting issues relating to insulation, flooding, structural issues and rendering.

A Facebook group called Bovis Homes Victim Group has grown to more than 3,000 members and common complaints among them are a lack of sound insulation, incorrect appliances, dented doors, flooding and thermal issues.

A number of disgruntled homeowners have reached settlements with Bovis, the terms of which are sometimes protected by non-disclosure agreements.

Bovis said: “We want open and honest feedback – positive and negative – from all of our customers so that we can build on the major improvements we have driven through the business and further enhance the experience of buying a Bovis Home.”

Dave Howard, a founder of the group, which operates the domain http://www.bovishomesvictimsgroup.co.uk and the owner of a £400,000 home in Oxfordshire, said he continues to work closely with the firm.

“We continue to attempt to work constructively with Bovis Homes as members of its Homebuyers Panel but have yet to detect any noticeable improvement in either build quality or customer service.

Obviously, from both our perspective and that of our members, this is extremely disappointing.”

https://www.independent.co.uk/news/uk/home-news/bovis-homebuyers-cash-property-newbuilds-housing-developers-a8330766.html

“Buyers in despair at badly built new homes” [particularly Bovis]

“One of the country’s biggest housebuilders is misleading buyers and “deliberately” delaying essential repairs to poorly built homes, according to an investigation by the Times. Bovis Homes, which builds about 3,500 properties a year, is also the only national builder to have been awarded a two-star rating out of five in the Home Builders Federation’s annual customer satisfaction survey for the year ending September 2017, meaning that between 30-40 per cent of customers would not recommend the company to a friend.”

Source:
Times p1, Sun p29

Bovis pays out £10.5 m to repair sub-standard homes

“Profits at Bovis slumped last year after the housebuilder was forced to spend millions of pounds repairing poorly-built homes and fending off takeover attempts by rivals Galliford Try and Redrow.

The company was criticised after rushing the construction of some properties and offering customers cash to move into unfinished houses, some of which had plumbing and electrical problems.

The scandal has so far forced it to spend £10.5m on repairs, including £3.5m in 2017. Other one-off costs last year included £4m for restructuring and £2.8m on advisory fees as it tried to see off the takeover bids.

The charges dragged down Bovis’s annual pre-tax profits, which fell 26pc to £114m. Revenues dipped 3pc to around £1bn, despite a 7pc hike in its average selling price to £272,000.

The housebuilder’s previous chief executive David Ritchie resigned last January, just days before the quality scandal came to light, after Bovis was forced to issue a profit warning because it had struggled to build as many homes as expected in 2016. …”

https://www.telegraph.co.uk/business/2018/03/01/bovis-profits-slump-35m-payout-botched-homes/

“Angry homebuyers plan class-action lawsuit against Bovis”

One of the examples cited in the article is from Cranbrook. See last paragraph of this post. Though most problems in this area seem to centre on Axminster.

Bovis Homes, one of Britain’s biggest housebuilders, faces a potential class-action lawsuit from a group of buyers who accuse it of selling houses riddled with defects.

Puneet Verma bought a five-bedroom house with his wife for £485,000 in Milton Keynes two years ago but says he still has a list of 120 snags. He is now consulting two law firms, Leigh Day and Slater & Gordon, about taking group action.

“I have had a survey done by a chartered surveyor that categorically states the workmanship is extremely poor and that Bovis is not in compliance with building regulations,” Verma says. “Bovis has treated, and continues to treat, its customers appallingly and now the only way to get our problems resolved is to take legal action.”

Verma is aiming to raise a £100,000 fund through a £100 contribution per homeowner, assuming 1,000 of the 2,500-strong Bovis Homes Victims group on Facebook sign up.

It has been almost a year since the housebuilder issued a profit warning and was accused of paying thousands of pounds in cash incentives to get buyers to move into unfinished homes. As the scandal widened, the company set aside £7m to fix defects and appointed a new chief executive.

A year on, some Bovis homeowners say they will be spending Christmas in houses that are riddled with faults, including leaks, moving and creaking floors, lack of insulation and sewage backups, as well coping with shoddy workmanship.

Ian Tyler, the chairman of Bovis, apologised to buyers in May for “letting them down” and admitted the firm had been cutting corners to hit ambitious targets. The company says it slowed production to iron out build problems, retrained sales staff and set up an advisory homebuyers panel, which has met once.

Dave Howard, who set up the Facebook group with his wife, Ann, and who sits on the panel, doubts whether Bovis has made any progress on improving build standards and customer service. He claims homeowners who report problems are being referred to the National House Building Council (NHBC), the standard-setting body and main home construction warranty provider for new-builds in the UK. But in the first two years after purchase the housebuilder is responsible for rectifying defects.

“We have had constructive contact with the new customer experience director, but there are too many people hitting brick walls with Bovis and NHBC,” Howard says. “Some new customers have had better experiences but that seems to have slipped too.”

Bovis says: “We have made significant changes to how we operate in 2017 and a growing majority of our customers would now recommend us to family and friends.

“We remain determined to make things right for customers who raise warranty items and apologise to those to whom we have not previously delivered the high levels of quality and service they rightly expected.” …”

[The article concludes with several examples of bad workmanship in various parts of the country including this one] …

Pete Oldham and his wife, a retired couple, bought a three-bedroom semi-detached house in Cranbrook, Devon, for £234,995 in December 2015. “All the floors move,” Oldham says. “When you walk into a room the furniture moves. They haven’t fitted things properly but are in denial.” He says the floor joists should be 400mm apart, not 600mm. There has been a breakdown in communication with Bovis and he has been referred to NHBC.”

https://www.theguardian.com/money/2017/dec/09/bovis-homebuyers-class-action-lawsuit-property-defects

Parish wants better-designed new homes – too late for Axminster!

Er, he seems to not have spoken out in Axminster which is in his constituency, where problems with new housing abounds! Owl noted it here:

https://eastdevonwatch.org/2016/12/23/axminster-and-cranbrook-slums-of-the-future-says-councillor-hull-whilst-councillor-moulding-says-nothing/

https://eastdevonwatch.org/2016/09/22/poor-quality-of-new-housing-in-axminster/

“ …Not only do we need traditional designs in keeping with the natural built environment, we a need a new homes Ombudsman to focus on complaints with new build homes. The fact the Communities Secretary, Sajid Javid, has backed this proposal – will be welcome news to hundreds of thousands of new housing residents in the coming years. It’s vital we get both the design and quality of these new homes right – because we won’t get a second chance. …”

http://www.devonlive.com/news/news-opinion/its-vital-design-quality-new-879515

Stable … horse …

“Majority of affordable homes lost due to legal loophole exploited by developers, show figures”

Well, we all know about this in East Devon where one of the UK’s mega-rich developers – Bovis – say they are too poor to provide “affordable housing in Axminster:

https://eastdevonwatch.org/2017/08/14/developer-bovis-too-poor-to-finish-axminster-estate-and-steep-slopes-came-as-a-surprise-and-owl-says-i-told-you/

and Seaton:

https://eastdevonwatch.org/2016/08/15/bovis-too-poor-to-buld-affordable-homes-in-seaton-yet/

“Property developers are dodging their commitment to building thousands of affordable homes each year due to a legal loophole, new research has revealed.

Figures obtained through Freedom of Information requests show developers have sidestepped local planning policy to avoid building 79 per cent of social homes they had initially committed to, due to a legal loophole called a “viability assessment”.

A sample of 11 local authorities across nine cities in England shows developers were able to first win planning permission by promising to build a required number of affordable homes, but later go back to the council to say they can no longer honour the pledge because it would reduce their profit margin. …”

… The research, carried out by the housing charity Shelter, reveals that viability is used most frequently on larger developments, which are generally managed by the country’s biggest developers.

It shows that the worst affected areas were Manchester, Birmingham and parts of London, where viability was used to reduce the affordable housing to less than 1 per cent of homes being built.” …

http://www.independent.co.uk/news/uk/home-news/affordable-homes-majority-lost-legal-loophole-developers-shelter-a8029601.html

Telegraph: “Our new Bovis home is falling apart and our warranty is worthless’ “

Buying a new home from Bovis? Best read this first.

“Johanna Leonard was set to live the retirement dream. After 35 years the 57-year-old finance worker sold her north London home and bought in the small town of Chudleigh, Devon, with far-reaching views over Dartmoor.

The five-bedroom, three-storey property was part of a 48-strong scheme called Tors Reach, completed in 2015 by Bovis, one of Britain’s biggest housebuilders.

But Ms Leonard’s bucolic fantasy rapidly crumbled. She is about to spend her third winter in a cold house with a damp lower ground floor and faulty heating system. She has suffered a hotchpotch of building mistakes, bad practice and shortcuts, with brickwork scuffed by scaffolding, metal screws rammed into plastic pipes and gaps between the guttering and the outside wall that could allow water and insects to creep in.

The surface problems were apparent as soon as she moved in. “Doors weren’t shutting properly, including the front door, the garden wasn’t turfed, and it was very badly painted, but the Bovis site manager just told me to ‘make a list’,” Ms Leonard said.

She had bought off-plan but was reassured by the Buildmark warranty issued by the National House Building Council (NHBC).

The warranty – which is presented as a regulatory stamp of approval for the quality of most of Britain’s newbuild homes – dictates that any structural problems found in the first two years will be dealt with by the builder. From years three to 10 the NHBC takes over repairs.

When relations turned sour with Bovis Ms Leonard turned to the NHBC, which describes itself as the “leading standard setter for new homes”. Far from having her building defects rectified, however, she found her living conditions deteriorating further.

The NHBC first investigated Ms Leonard’s home in July 2016 after Bovis washed its hands of the case and agreed that there were 60 issues to be resolved. The first set included repair work to substandard brickwork using the NHBC’s contractor. But Ms Leonard said: “Due to poor workmanship I had to advise the NHBC that I no longer wanted them in my house. The brickwork looked better before they started to make good the damage.”

More repairs were agreed a month later. An NHBC report showed that coping stones on the balcony were marked and stained and very untidy in appearance. It wasn’t until April 2017 that the NHBC took the coping stones away and removed the glass barrier from the balcony. The stones and the barrier have not been replaced. “It’s an accident waiting to happen,” said Joe Ward, her ex-husband. Rather than a vista of rolling countryside, Ms Leonard now looks out over abandoned scaffolding.

“There are a lot of defects in my home and both the speed and skill of the NHBC contractors leave everything to be desired,” she said. “My health has been affected by this experience, I am on antidepressants and sleeping pills and have had counselling. I feel terribly let down by the whole rotten newbuild and regulatory system. The NHBC allowed a home with breaches of building regulations to be put on the market and sold.”

The public impression that the NHBC, which has 80pc of the warranty market, is an ombudsman of quality rather than an insurance company is compounded by the marketing of developers such as Taylor Wimpey. “The NHBC was established over 60 years ago and is the independent regulator for the new homes industry,” the firm’s website read until this summer, when the word “regulator” was suddenly dropped.

Despite its own branding as “dedicated to housebuilding standards”, the insurance mutual bounces culpability back to the builder. “Ultimately the quality of new homes is the responsibility of builders,” it said. “Our priority is to help builders minimise defects in the homes they build and to enable us to provide the 10-year Buildmark warranty to help when problems emerge.”

In a written statement apologising to Ms Leonard the NHBC said: “There are rare circumstances where complex cases can take longer to resolve than we would wish and unfortunately there have been delays in carrying out repairs. It is also clear that some of the remedial works have not been carried out to the high standards we expect of our contractors.”

Maria Miller, the MP for Basingstoke and vice chair of the all-party parliamentary group for the excellence of the built environment, has questioned both the role of the NHBC and its relationship with the construction industry.

“The warranty system is broken and the NHBC has failed the consumer year after year, leaving some buyers dissatisfied with the biggest purchase of their life. The only way to resolve a dispute now is to get an MP involved. We need to rectify the balance of power between customer and construction industry,” she said.

The Conservative MP called for a new ombudsman to regulate the warranty industry. Her concern followed reports this summer that payments flowed between developers and the NHBC.

The most significant of these “premium refunds” was £2.7m to one developer in 2012, while last year the biggest single payment was £750,000. This calls into question the independence of the warranty system, especially when nearly a fifth of the members of the NHBC governing council are also on the board of builders such as Bovis and Barratt.

The NHBC said premium refunds were a way to reward a developer’s good claims history and were not uncommon in the insurance industry.

Paula Higgins, chief executive of the HomeOwners Alliance, said: “There is a definite requirement for a new homes ombudsman or regulator that would act in the best interest of buyers – not the industry – to ensure that consumers are protected and our homes meet the standard that is expected.”

This month the NHBC offered Ms Leonard a £10,000 cash payment to fix the outstanding defects herself. But she said: “The only offer I will accept is for Bovis or the NHBC to buy back my home. For every mistake we uncover there are more behind it and repair costs could escalate quickly.”

A structural engineer agreed, saying: “If the site manager has allowed some of these errors, what else has been done or not done? There are a lot of hidden aspects to construction that will show over time.”

http://www.telegraph.co.uk/property/uk/new-bovis-home-falling-apart-warranty-worthless/

Bovis: another “poor” developer upping dividends

“The City gave the thumbs-up to new boss Greg Fitzgerald’s “small is beautiful” turnaround plans for struggling Bovis Homes on Thursday, marking the shares up 8% despite a slump in first-half profits.

Bovis sacked its previous chief executive David Ritchie in January after profit warnings and controversy over “bribes” for buyers to move into barely finished homes — triggering opportunisitic takeover bids from rivals Redrow and Galliford Try.

Fitzgerald’s medicine involves rebuilding the business’s scarred reputation with customers and scaling back its growth plans, now aiming to sell 4000 homes a year instead of 6000 by 2020.

The firm has also shed 120 jobs to cut costs by merging two of its regional businesses.

But the payouts are getting bigger, with investors in line for £180 million in special dividends, funded by cutting exposure and investment on its larger sites, and selling some developments.

The ordinary dividend is jacked up 5% this year, with the promise of an extra 20% in 2018.

Shares jumped 8% or 85.7p to 1140p despite a 31% slide in profits to £42.7 million in the first half of the year.

The ex-Galliford boss, who took over in April, said the housebuilder’s woes were “very fixable”.

He said: “I’ve got a great hand of cards, we’ve just got to play that hand of cards better than we have in the past.

“Our strategy represents the minimal risk for the maximum shareholder return. Where Bovis is at the moment, that’s the right thing to do instead of charging on to get to 10,000 units. We’re well on the way to fixing Bovis but it is going to take more than a day.”

Jefferies analyst Anthony Codling called the strategy a “new dawn” and upgraded his estimates for the firm’s annual profits.”

https://www.standard.co.uk/business/new-bovis-chief-whets-city-appetite-for-turnaround-with-divi-bonanza-a3629156.html

Government and developers creating NIMBYs

“The biggest housebuilders are creating growing numbers of nimbys by trampling over communities and building ugly, unaffordable homes, the head of a homelessness charity has warned.

Polly Neate, the chief executive of Shelter, said that developers were putting profits before people and ignoring concerns about the quality and price of new homes.

She blamed the builders for “a huge loss of public faith in our housebuilding system” and called for reforms to planning laws to put people’s needs before corporate profits. “Even when communities create detailed plans for housing developments, these developers brush them aside and build unattractive, unaffordable homes,” she said. “This means many [people] choose to oppose new homes rather than go through a long planning process, only to be ignored in the end.”

The three biggest housebuilders, Persimmon, Taylor Wimpey and Barratt Developments, completed more than 46,000 homes last year and shared revenues of more than £11 billion. They made profits of £2.2 billion.

“The government needs to bring in a new way of building homes which listens to local people to build the high quality and genuinely affordable homes they need, along with schools, parks and other amenities,” Ms Neate said. “We once had a proud tradition of housebuilding in this country, as seen in our popular postwar new towns and garden cities, and it is now critical this is revived for the 21st century.”

Her comments came after a survey of more than 3,500 people found that only 13 per cent felt that developers listened to them. Almost 60 per cent said that they would be more inclined to support the building of new homes if they were listened to more keenly. The southeast had the highest proportion of nimbys, at 38 per cent, while the West Midlands had the lowest at 23 per cent.

The Times revealed last month that a consortium of housebuilders behind a new garden town in Devon had watered down its strict design code. The Sherford development on the outskirts of Plymouth was designed by the Prince of Wales’s architects to prove that his model village of Poundbury in Dorset could work on a larger scale.

The Prince’s Foundation for Building Community said that the builders, Bovis Homes, Linden Homes and Taylor Wimpey, used arcane planning laws to renege on their commitments to quality. Ben Bolgar, the foundation’s director, said they were determined to build a “normal, rubbish housing estate” instead. The consortium said the quality of the homes would not be affected.

Stewart Baseley, chairman of the Home Builders Federation, an industry body, insisted that his members “work closely with councils and residents to ensure the homes being built are what communities need”.

“Housebuilders have dramatically increased output to provide desperately needed homes,” he added. “Constructive debate is needed to develop policies that allow more homes to be built as opposed to baseless claims.”

Source: The Times (pay wall)

Developer Bovis too poor to finish Axminster estate – and “steep slopes” came as a surprise (and Owl says ‘I told you’!)

Owl predicted problems with this development LONG ago:
https://eastdevonwatch.org/2016/04/04/axminster-regeneration/

Recall the site was acquired below market value when Axminster Carpets got into difficulty.

And it seems that Bovis has its own troubles:
https://eastdevonwatch.org/2017/04/30/bovis-slow-down-will-hit-east-devon-hard/

Although again Owl drew attention to another problem affecting house sales on the site:
https://eastdevonwatch.org/2016/12/23/axminster-and-cranbrook-slums-of-the-future-says-councillor-hull-whilst-councillor-moulding-says-nothing/

So, it’s hardly surprising we find that Bovis blames everyone but themselves for their so- called plight – though its directors are probably not too worried about their bonuses:
http://www.constructionenquirer.com/2017/06/21/new-bovis-homes-boss-buys-extra-2m-shares/

“HOUSE building on the Bovis Homes Cloakham Lawn estate could cease unless planning conditions are removed or eased.

Bovis Homes says the scheme is in the process of stalling and, unless it can be brought back into viability, the company will have “no option but to cease work and mothball the development”.

But Axminster Town Council feels it is an attempt by the developer “to wriggle out of its commitments”, with district councillor Ian Hall saying: “‘Trying it on’ comes to mind.”

Bovis Homes has submitted a planning application to East Devon District Council (EDDC) to vary the Section 106 agreement (a set level of affordable housing and contributions towards the local infrastructure and facilities).

The development includes permission for up to 400 dwellings, and the company celebrated the second anniversary of its on-site sales office in September last year.

But a summary of an independent viability assessment, produced by chartered surveyor Belvedere Vantage Ltd, says: “The local market in Axminster has proved very difficult, with interest in the first phase of the development having slowed significantly, resulting in a large number of completed unsold ‘standing units’.”

The summary also referred to a number of physical constraints at the site, and “potential abnormal costs” associated with the constraints, which started to become clear during detailed site investigations after outline planning permission had been given.

Constraints include areas with very steep slopes, a flood plain boundary, two distinct drainage catchments, a watercourse running through the site, the need to maintain access to existing leisure facilities.

The negative impacts, including an inability to plan the scheme effectively, of a tree preservation order are also mentioned.

Axminster Rural district councillor Ian Hall, having declared an interest as he is the chairman of Cloakham Lawn Sports Centre (a Bovis Homes tenant), said in a formal response: “I have absolutely no sympathy.

“This land was purchased by Bovis for £2.9m cheaper than the market price when the failing Axminster Carpets Ltd was winding up.

“Bovis representatives (who were the strong arm of Bovis during the purchase of the land) were very aware of the agreements and were more than happy to proceed with the bargain of the decade.

“I am not one to make unnecessary fuss, although, on this issue, I will not compromise.

“ ‘Trying it on’ comes to mind.”

The independent viability assessment is confidential because it contains commercially sensible information, which is not included in the publicly available summary.

Axminster Town Council has requested more detailed confidential information and, in its formal response to EDDC, said: “The town council objects to this application, which appears to be an attempt by the developer to wriggle out of its commitments.

“There is insufficient information on which to make a well-reasoned response.”

The town council requested a meeting with EDDC and the developer so that it would be able to “respond in the light of more detailed, commercially confidential information”.

The town council also requested a site meeting in the company of a planning officer.

Town clerk Hilary Kirkcaldie said EDDC replied it could not share confidential information, but had appointed an independent viability consultant.

EDDC also expressed a willingness to host a site visit, which is yet to be arranged.

In her formal response to the application, EDDC housing strategy officer Melissa Wall said: “We are disappointed that the applicants have not approached the council before submitting their application to vary the S106 contributions to discuss their viability concerns.

“We are open to suggestions regarding changing the tenure and numbers of affordable units in order to assist viability.

“We are hopeful that agreement can be reached between the council and the applicant to ensure that the development can support some form of affordable housing.”

Bovis Homes would not say how many houses have been built and how many are under construction – nor would the company comment on Councillor Hall’s claims.

A spokesperson said: “We cannot comment on live viability applications but we will continue to work closely with the local authorities to deliver the new development at Axm- inster, which is providing much-needed new homes as well as an economic boost and jobs for the area.”

https://www.viewnews.co.uk/housing-development-axminster-stop/

Prince Charles gets his own (beautiful?) way with his new south-west town

Owl says: bet this wouldn’t happen in the Republic of East Devon! And wonders if a “zombie town” of which they speak might be on our own doorstep!

Jerome Starkey
http://www.thetimes.co.uk

“Three of Britain’s biggest housebuilders have lost an attempt to change the plans for a garden town designed by Prince Charles’s architects, amid claims that the builders’ proposals would have created a “zombie town”.

The Sherford Valley, on the outskirts of Plymouth, had been earmarked for 5,500 new homes and was designed by the Prince’s Foundation to create an eco-friendly pedestrian community like Poundbury in Dorset.

Bovis Homes, Linden Homes and Taylor Wimpey, which bought the site in 2014, had applied to Plymouth council to water down the design rules and change Prince Charles’s plan so that they could build cheaper homes more quickly.
Councillors said that the move would have created a “zombie town” with “years of planning thrown out of the window” and rejected their application.
The builders had built fewer than 300 of the homes when they applied to amend the town code and master plan.

“Instead of having the highest standard of new homes, we will instead have a rather large housing estate,” Vivien Pengelly, a councillor, said.
The housebuilders said that they were asking for minor changes that would not have affected the quality of homes. However, Ben Bolgar, a director of the Prince’s Foundation, said that they were trying to strip out commitments to quality.

He said that Sherford was designed to prove that Prince Charles’s model village of Poundbury, near Dorchester, could work on a larger scale but that the builders were determined to “build their normal boxes”.

The design code meant that the builders had to produce a range of houses, built from local materials, which were not more than 500m from the shops. Cars had to be parked in hidden courtyards rather than on the street to encourage people to walk.

Mr Bolgar said that the builders’ plans would have transformed Sherford into a “rubbish housing estate”.

Jonny Morris, a councillor, said that he did not want Sherford to end up like the sort of place you would see “in the aftermath of a zombie apocalypse”.

Housing companies applied to ditch a town code drawn up 13 years ago and replace it with a set of “fundamental principles” which they said allowed them greater flexibility over materials and construction methods.

“This is simply far too premature to take such a radical act, disregarding all those measures that allowed permission to be granted in the first place,” Nick Kelly, the deputy lord mayor, said. “We want development but everybody thinks, ‘This is what we’re going to get’, and at the stroke of a pen years of planning and assurances go out of the window.”

Lord Taylor of Goss Moor, who wrote a report in 2015 calling for dozens of new garden villages, said that Sherford had an excellent town plan and was “overwhelmingly supported by the local community” because of its commitment to quality. “The housebuilders knew what they were signing up to. There should really be no question about what will be delivered,” he said.”

Times (paywall)

“Builders gag buyers over shoddy work”

Buyers of substandard new homes are being asked to sign gagging orders to keep the faults secret and are routinely refused access to technical plans that show how their properties should have been constructed.

Some owners are then locked out of their homes during repairs, an investigation by The Sunday Times has found.

The research reveals how builders wield power over buyers at every stage of the new-build market, allowing quality to slip as the government spends £43bn on stimulating private housebuilding to try to hit a target of 1.5m new homes by 2022. …”

Sunday Times, page 4 (paywall)

The article talks of builders forcing people to sign non-disclosure agreements and are forced out of their homes so they cannot see what work has been done before remedial work is carried out so neighbours and press cannot find out.

Bellway, Taylor Wimpey, Strata, Barratt and Bovis mentioned for various alleged transgressions.