New survey shows improved levels of customer satisfaction

3 April, 2007

Second national survey shows that home builders have either maintained or improved the high level of customer satisfaction achieved in 2006

The second annual survey of new home buyers shows that 76% of purchasers are satisfied with the overall quality of their home and 77% would recommend their builder to a friend. The latest results for those recommending their builder to a friend show a 2% improvement on last year’s survey.

The results of the national survey – undertaken by the Home Builders Federation (HBF) in partnership with NHBC – detail the customer satisfaction levels achieved by 20 larger home building companies in the 12 months from October 2005 to September 2006. The survey finds that:

More than three quarters (78%) were satisfied with the service provided during the buying process – an improvement of 2% on last year’s figure. This includes just over one third (37%) saying they were very satisfied

Almost three quarters (73%) regarded their builder as very (44%) or fairly (29%) good in relation to completing the home on time

When asked about the condition of their home on move-in day, 72% were satisfied, including almost a third (32%) who were very satisfied

70% regarded the standard of finish as good – an increase of 1% on last year

Almost two thirds (65%) were satisfied with the service after moving in – an improvement of 3%

Although most home purchasers had reported a problem to their builder after moving in, such as a defect or snag, a majority regarded the number of problems as either in line with expectations (39%) or fewer than expected (22%)

The national survey of home buyers is a key part of HBF’s customer satisfaction strategy. As part of the strategy, the HBF has also developed a Customer Service Code of Conduct and model contract terms to meet higher customer satisfaction standards.

Stewart Baseley, Executive Chairman of the Home Builders Federation, states: “I am pleased that this survey shows a modest but consistent improvement on the high levels of customer satisfaction achieved in the first survey. It demonstrates that home builders are committed to high levels of customer satisfaction.

“The survey does, of course, highlight areas for continued improvement. Although there has been a slight improvement in reducing post-occupation defects and improving the handling of after-sales service, these areas require focused attention and effort.

“Overall, however, I am in no doubt that customer satisfaction is now an integral part of the operating culture of most home building companies, and I believe that recent steps taken to improve service levels will be reflected in steadily improving results in future surveys.”

For media information, please contact:

Toby Orr

0207 404 5344

07736 175311

toby.orr@portlandpr.co.uk

1. The Home Builders Federation (HBF) is the principal trade federation for private sector home builders and voice of the home building industry in England and Wales. The HBF’s 300 member firms account for over 80% of all new homes built in England and Wales in any one year, and include companies of all sizes, ranging from multi-national, household names through regionally based businesses to small local companies: www.hbf.co.uk

2. The HBF National New Home Customer Satisfaction Survey is a self-completion postal census of the new home purchasers of 20 home builders building more than 500 units per year. Based on NHBC registration records, the participating companies account for 49% of annual NHBC registrations.

The survey results cover purchasers legally completing during the 12 months October 2005-September 2006. Purchasers were sent a questionnaire approximately eight weeks after legal completion. Any private tenants receiving a questionnaire were asked not to complete it. The statistical methodology used in the analysis of this survey has been discussed with, and approved by the Statistical Services Centre, University of Reading. The methodology is the same as in the first survey for which Ipsos MORI acted as a consultant, advising on the methodology and analysis.

Almost 55,000 questionnaires were mailed and nearly 26,000 questionnaires were returned, a response rate of 47.2%. Blank responses were excluded from calculation of the results for each question. The industry results are weighted to take account of each home builders’ total NHBC registrations.

Individual company results are not weighted. Company results for Q7 and Q8 are presented in bands as follows:

90%+ 5 star

80% less than 90% 4 star

70% less than 80% 3 star

60% less than 70% 2 star

50% less than 60% 1 star

For Q7, stars were allocated according to the proportions responding Very and Fairly satisfied. For Q8, stars were allocated according to the proportion responding ‘Yes’ (i.e. they would recommend their builder to a friend).

The major benefits of the chosen system of star ratings are that it provides a fixed benchmark against which results can be compared between surveys, and the bands are transparent and easily understood.