THE COUNCIL of Mortgage Lenders says that the recent revamp of the House Builders Federation’s code of conduct does not go far enough.
The HBF has rewritten its code to make the disclosure of all sales incentives on new developments mandatory for members.
The police has previously warned that fraudsters could exploit the incentives offered by builders that allow them to secure loans in excess of properties’ market values.
In the past the CML has expressed concern over the lack of transparency and the influence of incentives on the new-build valuation process.
A spokeswoman for the CML says: “We welcome the changes but there is still a long way to go. There must be a universal approach to make de velopers disclose incentives.”
But Stewart Baseley, executive chair man of the HBF, says: “We believe the amended code will provide assurance to buyers and lenders that discounts and incentives are transparent.
We will continue to work with our members, lenders and the CML to help buyers get the support they need.”