‘I feel terrible’: Couple say their new home valued at £1 has turned into a disaster | Property

When Dayle Dixon and Mark Lee bought a beautiful new house on the outskirts of Ivybridge in Devon in 2018, they thought it would be their forever home. But less than six years later, it was valued at just £1, and the couple were desperate to move.

Dixon, 53, and Lee, 59, had never owned a property before and bought their home, on a development called Lucerne Fields, using, in part, almost £55,000 borrowed through the government’s Help to Buy scheme.

The three-bedroom house is pretty from the outside, with its cream-coloured façade and long windows. There is a garage and space for two cars in the driveway.

But the property, which they bought from Barratt Developments subsidiary David Wilson Homes for £274,995, was last year valued at £1 by independent experts after a list of major defects emerged. The experts said that without those problems, the value would have been £330,000.

After visiting the estate in 2018, South West Devon Conservative MP Gary Streeter praised the project, writing on its website: “The quality of the new homes was evident and the care taken to ensure the project fits into the surrounding setting was clear.”

Dixon and Lee, however, say their experience of their home has been very different.

“We’ve had hundreds of problems with the house,” Dixon says. “And the repairs that have been done haven’t been done properly.”

Dixon and Lee’s problems with their “dream” home started before they even moved in. They viewed the property as soon as they received the keys, two days before their moving date, and noticed a hairline crack in one of the floors. Barratt agreed to put a layer of screed over it before they moved in, but Dixon says it made no difference. The next problem that arose, shortly after they moved in, was a broken drain pipe.

Over time, new problems emerged. The couple have a long list of complaints, including reports assessing the problem and emails they sent to Barratt’s people, highlighting the failure to resolve the issues.

Since they moved in, Dixon has been off work due to stress and anxiety, which she blames for her problems.

“I have developed post-traumatic stress disorder, I have nightmares and I sweat a lot and I can’t function properly. I often feel physically ill,” she said. “We live in a house that is a total mess.”

Chartered surveyors who valued the couple’s home at £1 last year listed numerous defects in their valuation report, including inadequate waterproofing, water ingress, inadequate floor screed (used to create an even floor surface), inadequate window design and damaged and corroded structural floor beams.

The report states: “The ground floor will need to be stripped down to bare metal, sections of structural walls and floors will need to be removed, and it is likely that further defects requiring repair will be identified as the work progresses.”

“A number of significant defects have been identified. The developer has not demonstrated sufficient positive engagement to address these issues… The result is ongoing and costly litigation between the parties that only appears to be getting worse,” he added.

The reports commissioned by Barratt take a more optimistic view of the problems than those commissioned by the couple, although a structural assessment commissioned by the developer admitted that one of the floor beams had been damaged and cracks needed to be monitored. Another report commissioned by Barratt recommended remedial action for cracks in the floor.

The couple have taken legal action against the company over damage to the property caused while the repairers were at their home. Barratt declined to answer Guardian Money’s questions about the house, citing the legal action as the reason.

Dixon says the couple have given up hope that the problems will be resolved and they can finally start enjoying their home.

“We are tired of having our lives wasted and being treated like idiots,” she said.

“I want Barratt to buy our house back for the market value it would have had if it had been in good condition, which is around £350,000.”

Others in the neighbourhood also reported problems, but no one would speak to the Guardian about them. One family said they were unable to speak to the media because they were involved in a legal case against the company and did not want to jeopardise the compensation they were negotiating.

Elsewhere, Roberto and her husband bought what they thought was a magnificent house in Wiltshire in Barratt last October.

They paid £400,000 for the three-bedroom detached house but say a litany of problems quickly emerged, including a lack of insulation and a garage built 30cm lower than it was supposed to be, as well as issues with a fence, brickwork, paving slabs and their shower door.

“It’s a complete disaster,” Roberto says. “When we bought the house we thought it was perfect, but we’ve had so many problems. The house is cold and we can feel the wind coming in because of the lack of insulation. When they fix one thing, they damage another. I’m so depressed by it all. Barratt have offered us financial compensation, but some walls have to be completely demolished and rebuilt.”

The builder has agreed to fix a series of identified defects, including the insulation problem, replacing external vents and checks to ensure ducts are properly sealed. He has also agreed to remove and replace some skirting boards and plasterboard and work on raising the garage and driveway. However, the couple are still dealing with problems.

“This is not fair,” Roberto said. “We want to make the house beautiful, but it doesn’t seem to make sense. We paid to have a beautiful house, but it seems we paid for Barratt to make us suffer.”

Barratt said he had carried out work on the house but declined to make an official statement on the matter.

A spokesperson said: “As a five-star housebuilder, we pride ourselves on the high quality of our homes and over 90% of our customers would recommend us to their friends and family. We build thousands of homes every year and when problems arise we work hard to resolve them as quickly as possible.”

Dixon hopes that if Barratt buys their house, they will be able to buy another property.

Otherwise, she said, “we won’t be able to afford to rent… Worst case scenario, we’ll have to move in with my elderly parents.”

How warranties work

One of the great things about buying a newly built home is that it comes with a 10-year warranty – effectively an insurance policy.

If you discover problems with your new home, you have various rights and options to try to resolve them.

The 10-year warranty

This insurance is taken out by the builder or developer and is supposed to protect the buyer of the house.

It is usually divided into two periods: a manufacturer’s warranty for the first two years, then insurance coverage for the next eight years.

Consumer group Which? says that while the first part covers structural problems and minor defects found within the first two years, which the manufacturer is required to fix, the second part of the guarantee “only covers structural problems… It does not cover cosmetic problems or minor defects”.

The HomeOwners Alliance agrees, saying structural issues include foundations, exterior rendering, roofs, ceilings, chimneys and load-bearing portions of floors.

Buyers therefore effectively have only two years to identify, report and resolve non-structural defects which can take several months to discover.

The vast majority of new homes are believed to be covered by the National House Building Council’s Buildmark policy, although there are several other warranty providers including Buildsafe, Checkmate and LABC Warranty.

Consumer codes and complaints handling bodies

Hopefully the developer or builder will act quickly to resolve any issues. If you need to make a complaint, you will first need to follow the developer’s official complaints procedure, Which? says.

If you’re still struggling to make yourself understood, you have options. For example, the NHBC says it offers an independent resolution service if a builder fails to meet their obligations under Buildmark.

The next step is to check whether your builder or developer has signed a code of conduct. Almost all warranty providers require developers to sign up to a consumer code of conduct, which aims to protect consumers during the sales process and offers a dispute resolution service if anything goes wrong within the first two years, says HomeOwners Alliance.

The two main ones are the New Homes Quality Code, run by the New Homes Quality Board (NHQB), and the Consumer Code for Home Builders (there is also the Consumer Code for New Homes). Your developer should tell you which one applies to you.

If a builder fails to meet the requirements of the NHQB Code, consumers can contact the New Homes Ombudsman Service, who will investigate and provide compensation if necessary.

In the meantime, if you believe your developer has breached the Consumer Code for Housebuilders, you can access its independent dispute resolution system, which can order the company to pay compensation or carry out remedial work.