Registration number:
New Homes Quality Board Limited
for the Period from 6 January 2021 to 30 June 2022
New Homes Quality Board Limited
Contents
Company Information |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Balance Sheet |
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Notes to the Financial Statements |
New Homes Quality Board Limited
Company Information
Directors |
Rob Brighouse Leon Stewart Frederick Livermore Emma Jayne Toms Jacqueline Anne Bennett Joanne Matheson Casey Douglas Neil Cochrane Naomi Anne Connell Gillian Jane Cooper Jennifer Daly Katy Sarah Jordan Curtis Mark Juman Paul Michael Price Steven Archibald Wood |
Registered office |
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Solicitors |
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Auditors |
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New Homes Quality Board Limited
Directors' Report for the Period from 6 January 2021 to 30 June 2022
The directors present their report and the financial statements for the period from 6 January 2021 to 30 June 2022.
Incorporation
The company was incorporated on
Principal activity
The principal activity of the company is is an independent not-for-profit body which was established for the purposes of developing a new framework to oversee reforms in the build quality of new homes and the customer service provided by developers.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
New Homes Quality Board Limited
Directors' Report for the Period from 6 January 2021 to 30 June 2022
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
New Homes Quality Board Limited
Directors' Report for the Period from 6 January 2021 to 30 June 2022
At the New Homes Quality Board we fully understand the magnitude of the consumer decision to invest in a new home.
It is our mission to work with homebuyers, the industry and both government and devolved administrations to ensure that the whole process of purchasing a home, moving into that home and the after-sales experience is a positive one.
The New Homes Quality Board (NHQB) is an independent not-for-profit body which was established for the purpose of developing a new framework to oversee reforms in the build quality of new homes and the customer service provided by developers.
The framework is being launched in October 2022 and will deliver a step change in developer behaviour, a consistently high standard of new home quality and service and strengthened redress for the buyers of new-build homes.
The role of the NHQB is to:
• |
Develop and maintain the New Homes Quality Code. |
• |
Oversee the appointment and performance of the New Homes Ombudsman Service. |
• |
Hold the Register of Developers of new build homes. |
• |
Discipline or sanction poorly performing developers. |
• |
Provide information and support to consumers and industry. |
• |
Report and publish industry performance. |
How we support improvement in the new homes sector
• |
Setting new, more stringent requirements for developers to improve the quality of new homes and the standard of customer service. |
• |
Publishing the new Code with ten overarching principles that underpin the fundamental requirements. |
• |
Monitoring developer performance and sanctioning those who fail to achieve the highest standards or comply with any determination of the New Homes Ombudsman. |
• |
Publishing anonymised case studies to inform the sector on cases and decision-making to highlight where improvements are required. |
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In the longer term, publishing developer performance to enable home buyers to make an informed choice when selecting a new build developer. |
Highlights from 2021/22
• |
A public consultation on the New Homes Quality Code was undertaken in early 2021 which received over 250 responses which were overwhelmingly positive. |
• |
Following a review of the consultation responses, a considerable number of changes were made to the detailed wording of the Code prior to it being published in December 2021. Since then, the Code has been further updated to achieve a ‘crystal mark’ from the Plain English Campaign. |
• |
We have completed a public procurement exercise and following a rigorous validation process, The Ombudsman Association (OA) has approved The Dispute Service to operate the New Homes Ombudsman Service (NHOS). |
New Homes Quality Board Limited
Directors' Report for the Period from 6 January 2021 to 30 June 2022
• |
In Spring we launched the developer registration portal which has received applications from over 100 developers so far including over 70% of large and medium developers from across England, Scotland and Wales. |
• |
During the year we have launched three stakeholder panels to support and inform our work: |
Government Engagement Panel
Consumer Panel
Technical Panel
• |
After successfully navigating the NHQB through the initial setup, Natalie Elphicke stood down and was replaced as Chairman by Rob Brighouse. |
• |
In the last six months a new executive team has been recruited and onboarded. |
Our key priorities for 2022/23
• |
Register as many developers as possible, to ensure as many consumers as possible benefit from the new protections. |
• |
Extend the new arrangements to Northern Ireland. |
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Promote awareness of the new arrangements to both consumers and the wider industry and stakeholders. |
• |
Gain CTSI accreditation for the new Code. |
• |
Use the findings of the Ombudsman to publish anonymised case studies to raise standards across the new homes sector. |
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Commission consumer research to develop our thinking and inform decision-making. |
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Review the New Homes Quality Code to ensure it remains fit for purpose. |
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Work with the Housing Ombudsman to confirm how the new framework can apply to customers with shared ownership tenure in future. |
The New Homes Quality Code
The New Homes Quality Code introduces a broad range of additional requirements for developers to fill the gaps in existing protections and ensure that every aspect of a new home purchase, from when a customer walks into a sales office, through to two years after occupation of the home is covered.
The final version of the code was agreed following the full public consultation in 2021, to which hundreds of responses were received from a broad range of stakeholders. The consultation was just the latest key step in what has been a five-year journey to develop a new industry code of practice that fills the gaps and improves upon the existing consumer codes in order to provide better protections for buyers of new build home.
The new Code:
• |
Protects vulnerable customers, prohibits high pressure selling and requires customer deposits to be protected. |
• |
Requires the developers to provide all relevant information about the home during the sales process – including its tenure and any future management or service charges – allowing customers to make an informed decision about their purchase. |
New Homes Quality Board Limited
Directors' Report for the Period from 6 January 2021 to 30 June 2022
• |
Sets out requirements for a fair reservation agreement, including a ‘cooling off’ period, and sales contract requirements. |
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Allows customers to have a professional carry out a pre-completion inspection of their home on their behalf. |
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Specifies that a home must be ‘complete’, preventing developers from paying customers to move into a new home early. |
• |
Crucially, addressing the biggest gap in existing arrangements, the new Code requires developers to have a comprehensive after sales service to deal with any issues customers have with their new home in a timely manner; with the option to refer their complaint to an independent New Homes Ombudsman Service. |
The Register of Developers
Once developers have applied to register under the new Code, they are provided with a suite of resources to support their readiness preparations. This includes an online training modules, template forms and communications, and relevant logos and brand guidelines.
When a developer is confident that they can comply with the requirements of the New Homes Quality Code, they ‘activate’ their registration. From this activation date forward, all customers who reserve a new home with that developer will be covered by the new Code and the remit of the New Homes Ombudsman.
Customers who reserved a home before the activation date will continue to be protected by the previous arrangements.
The Register of Developers launched in October 2022 and is published on the NHQB website so that prospective homebuyers can easily check which developers comply with the new standards and have the benefit of the Ombudsman.
How we work with the New Homes Ombudsman Service (NHOS)
The NHOS will receive all enquiries directly from the consumer, assess the enquiry and direct it to the appropriate area for resolution – these may be consumer complaints, which - if in scope - will be dealt with solely and comprehensively by the NHOS without input or intervention from the NHQB.
It will be at the sole discretion of the NHOS to determine whether any complaint or enquiry falls within or outside the scope of the NHOS or decide which, if any, other body such complaints may be referred to, including in accordance with its Memorandum of Understandings with other Ombudsman services.
The NHQB will maintain its own website that provides information about the NHOS; the NHQB remit; the Register of Developers; resources for developers and guidance relating to the Code. It may also include resources to help consumers around buying, maintaining and complaining about their home and other matters within its remit relating to further developing and maintaining the Code and Register to be fit for the future.
The NHQB may consider, as part of its own work, and separate from the work of the NHOS, any information provided to it, whether from an individual or an organisation, on any expansion or additions required to the Code, Register and redress mechanisms, as part of its own remit to ensure that there is a framework of appropriate and relevant standards and redress for new build homebuyers and owners.
New Homes Quality Board Limited
Directors' Report for the Period from 6 January 2021 to 30 June 2022
The NHOS shall determine the outcome of any investigation of a complaint without reference to the NHQB and shall apply any remedy as it sees fit. The NHOS shall have a clear and unfettered relationship with the NHQB and will refer any matter as it determines appropriate to the NHQB for information, or further action. There is an independent Disciplinary and Sanctions Committee, that will assess any referrals for further action from the NHOS, or as a result of matters arising from the operation of the Register of Developers and Code itself within NHQB.
The NHOS shall operate under a framework of financial certainty and stability – free from financial challenge. The NHQB has agreed to a five year contact that secures a significant degree of financial certainty over time and with the ability to plan and commit resources and employ staff.
The NHOS will have sole discretion to appoint or dismiss any of its staff without reference to the NHQB and the NHQB will have no role, unless requested to do so in the appointment of any staff engaged by the NHOS to deliver the services as specified in the Outsourcing Agreement.
The relationship between the NHQB and the NHOS will be transacted through a clear performance framework agreed between both parties. Performance will be reviewed and reported on a regular basis – taking account of a range of qualitative and qualitative measures.
PRINCIPAL RISKS FACING NHQB AND THE SECTOR:
The risk of being a new company
In common with all new businesses, we are more vulnerable to fluctuations in income and their impact on cash flow. As this report shows, the first year we have operated at a loss but that was planned and forecast. In opening up our applications portal to all developers in July we have seen a positive response and we are on target with developer applications. We will need to ensure that we continue to monitor cash flow forecasts but at this stage the business has a sufficient level of liquidity to continue operations aligned with its strategy.
The risk of a downturn in new homes
Coupled with the newness of the organisation we do need to keep abreast of the potential impact of the cost-of-living crisis and other matters have on new homes. Obviously, any lessening of the number of new homes built will impact on our income. To mitigate this we have set four differing models of market size and registration, so that we can accurately forecast and monitor the impact of any downturn.
New Homes Ombudsman Service Capacity
At the moment there is scant information to base forecast numbers of complaints that are likely to come through to the Ombudsman. Too few and we are exposed to financial risk as we have guaranteed minimum income payments. Too many and there may be strains on the ability of the service to hit performance targets. To mitigate this, we have a performance committee in place to oversee this on behalf of the Board. Additionally, we believe that we have been prudent and put more capacity into the contract than we will see in complaints volume, thereby ensuring consumers get good service throughout the process from the Ombudsman. The review of fees to move to a ‘polluter pays’ approach enables us to mitigate any risk on the company from shortfall in numbers.
New Homes Quality Board Limited
Directors' Report for the Period from 6 January 2021 to 30 June 2022
The impact of uncertainty in Government Policy
Politics have been going through turbulent times for a while and this does impact on us:
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New Ministerial team in Westminster to engage with. |
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Lack of clarity about Government plans for when and how to make the scheme statutory means that some developers may be reluctant to sign up. |
• |
Issue with devolved Government in Northern Ireland complicating our roll out there. |
We will continue to meet with Civil Servants from all administrations on a regular basis to help shape policy to ensure that the protections we aim to bring in are well understood and supported.
The risk of confusion for consumers
Housing is a complex area, and many tenants and homeowners are still navigating issues such as cladding. This does not sit within the remit of the NHQB but there is the potential that consumers will still contact us to seek redress for such issues. We are working with the Ombudsman and communications team to ensure that we are both empathetic to individual situations and are clear on what we can and cannot deal with.
CORPORATE GOVERNANCE
The NHQB is a private company limited by guarantee without share capital. It is an independent not-for-profit body. Under the constitution, the duty and authority to run NHQB’s affairs is vested in the Board. It was formally constituted as a legal entity in January 2021.
The NHQB Board is made up of a wide range of individuals who each bring a wealth of relevant experience and expertise to support the NHQB in achieving its aims of championing quality new homes and better consumer outcomes.
There are safeguards in place to ensure it remains independent.
The NHQB has a small core management team who run the day-to-day operation, led by Leon Livermore (CEO) and Emma Toms (COO).
Committees & Panels:
• Audit & Risk Committee
The Committee provides oversight of the financial reporting process, the audit process, the company's system of internal controls and compliance with laws and regulations. In addition, the Committee is responsible for assisting the Board in its oversight of risk.
New Homes Quality Board Limited
Directors' Report for the Period from 6 January 2021 to 30 June 2022
• Remunerations & Nominations Committee
This Committee assists the Board in overseeing remuneration policy and determining each executive director's remuneration package. It is also responsible for overseeing nomination/succession of Board and Committee members, and to ensure that there is an appropriate balance of skills, experience, and independence to discharge duties and responsibilities effectively.
• Performance Assurance Committee
The Committee will deal with matters relating to the performance of the New Homes Ombudsman Service (NHOS) in relation to all contract matters, performance, and operation of the service.
• Discipline & Sanctions Committee
The Committee investigates whether a breach (of the Code or other disciplinary offence) has occurred by a developer and, if so, what corrective action or disciplinary measures are to be applied.
• Government Engagement Panel
The Panel engages with Government and the devolved nations on the Code to keep officials updated and allow for discussion on issues relevant to the NHQB’s developing proposals, including the scope and implementation of the New Homes Quality Code and the New Homes Ombudsman.
• Consumer Panel
The Consumer Panel has been established to give customers the opportunity to provide input and feedback on the New Home Quality Code to help shape its evolution. Ultimately it allows customers to have a voice.
• Technical Panel
The Technical Panel advises the Board on all technical matters, such as the sale process, after care, construction, finishes or maintenance of a new home, that the Board may be asked to consider as part of the operations of the New Homes Quality Board.
• Code Council
The Code Council is an advisory Council to the Board which deals with matters relating to measuring the success of the New Homes Quality Code and recommending updates and amends to the Code to ensure it remains fit for purpose.
NHQB Board
We have a strong, experienced, and diverse Board with a good balance of skills.
The Board’s principal role is to agree and oversee the implementation of NHQB’s strategy, to ensure that the necessary resources are in place to enable it to meet its objectives and that the financial performance, controls and risk management procedures are suitably robust. The Board is also responsible for ensuring that we maintain an appropriate standard of governance regarding the constitution and the regulatory framework in which we operate.
New Homes Quality Board Limited
Directors' Report for the Period from 6 January 2021 to 30 June 2022
Board composition
Balance of Executive and Non-Executive Directors:
Chair |
1 |
Independent Non-Executives |
6 |
Industry Non-Executives |
4 |
Other Non-Executive |
2 |
Executive |
2 |
Of which
Male |
8 |
Female |
7 |
Directors of the company
The directors who held office during the period were as follows:
Douglas Neil Cochrane (appointed 6 January 2021)
Natalie Cecilia Elphicke (appointed 6 January 2021 and resigned 4 May 2022)
Steven Archibald Wood (appointed 6 January 2021)
Joanne Matheson Casey (appointed 6 January 2021)
Gillian Jane Cooper (appointed 6 January 2021)
Jacqueline Anne Bennett (appointed 6 January 2021)
Katy Sarah Jordan (appointed 6 January 2021)
Nicholas John Boys Smith (appointed 6 January 2021 and resigned 19 August 2022)
Paul Howard Smee (appointed 6 January 2021 and resigned 26 July 2022)
Jennifer Daly (appointed 6 January 2021)
Naomi Anne Connell (appointed 1 April 2022)
Paul Michael Price (appointed 1 April 2022)
Curtis Mark Juman (appointed 1 April 2022)
Leon Stewart Frederick Livermore (appointed 1 April 2022)
Rob Brighouse (appointed 1 April 2022)
The following director was appointed after the period end:
Emma Jayne Toms (appointed 1 August 2022)
New Homes Quality Board Limited
Directors' Report for the Period from 6 January 2021 to 30 June 2022
Board attendance:
The table below provides information on the meetings held during the year under review.
Board member |
Meetings to attend |
Meeting attended |
Attendance % |
Natalie Cecilia Elphicke |
14 |
12 |
85 |
Nicholas Boys-Smith |
15 |
10 |
66 |
Paul Howard Smee |
15 |
13 |
86 |
Douglas Neil Cochrane |
15 |
15 |
100 |
Jackie Anne Bennett |
15 |
15 |
100 |
Gillian Jane Cooper |
15 |
14 |
93 |
Steve Archibald Wood |
15 |
13 |
86 |
Joanne Matheson Casey |
15 |
12 |
80 |
Jennifer Daly |
15 |
8 |
53 |
Katy Jordan |
15 |
15 |
100 |
Rob Brighouse |
3 |
3 |
100 |
Naomi Anne Connell |
3 |
3 |
100 |
Paul Michael Price |
3 |
3 |
100 |
Curtis Mark Juman |
3 |
3 |
100 |
Leon Stewart Frederick Livermore |
3 |
3 |
100 |
Independence of the Directors
All directors make a declaration of their interests to the Board, including any actual or potential conflicts they may have. Those issues are considered by the Board and recorded in a register held for that purpose and kept under review, as appropriate. Should the Board discuss any matter which relates to a declared interest, or which could give rise to a conflict, our approach is that the director concerned may take part in some or all the discussion of the issue but will leave the meeting when a decision is to be made. Four Non-Executive Directors, Steve Wood, Joanne Casey, Jennie Daly and Katy Jordan, work within the new house-building industry, and their membership of the Board is to ensure an appropriate breadth of skills, experience and industry views is represented.
Approved and authorised by the
......................................... |
New Homes Quality Board Limited
Independent Auditor's Report to the Members of New Homes Quality Board Limited
Opinion
We have audited the financial statements of New Homes Quality Board Limited (the 'company') for the period from 6 January 2021 to 30 June 2022, which comprise the Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• |
give a true and fair view of the state of the company's affairs as at 30 June 2022 and of its loss for the period then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
New Homes Quality Board Limited
Independent Auditor's Report to the Members of New Homes Quality Board Limited
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Directors' Report has been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• |
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors' remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit; or |
• |
the directors were entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the directors report and from the requirement to prepare a strategic report. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 3], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlines above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
New Homes Quality Board Limited
Independent Auditor's Report to the Members of New Homes Quality Board Limited
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. |
|
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context is the Companies Act 2006. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items. |
|
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), and employment and health and safety legislation. |
|
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. |
|
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of income and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Audit & Risk Committee about their own identification and assessment of the risks of irregularities, testing on the posting of journals, tested the application of cut-off and revenue recognition, particularly around membership income; reviewing accounting estimates for biases, reviewing regulatory correspondence with the Companies House and reading minutes of meetings of those charged with governance. |
|
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
New Homes Quality Board Limited
Independent Auditor's Report to the Members of New Homes Quality Board Limited
......................................
For and on behalf of
55 Ludgate Hill
EC4M 7JW
New Homes Quality Board Limited
(Registration number: 13116068)
Balance Sheet as at 30 June 2022
Note |
2022 |
|
Fixed assets |
||
Tangible assets |
|
|
Current assets |
||
Debtors |
|
|
Cash at bank and in hand |
|
|
|
||
Creditors: Amounts falling due within one year |
( |
|
Net current assets |
|
|
Total assets less current liabilities |
|
|
Creditors: Amounts falling due after more than one year |
( |
|
Net liabilities |
( |
|
Reserves |
||
Retained earnings |
(250,686) |
|
Deficit |
(250,686) |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Income and Expenditure Account has been taken.
Approved and authorised by the
......................................... |
New Homes Quality Board Limited
Notes to the Financial Statements for the Period from 6 January 2021 to 30 June 2022
General information |
The company is a company limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £10 towards the assets of the company in the event of liquidation.
The address of its registered office is:
These financial statements were authorised for issue by the
The company registration number is 13116068
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
The financial statements have been prepared on the basis of the historical cost convention.
Summary of disclosure exemptions
The company has chosen to select partial exemption under FRS102 1A Small Companies Regime Paragraph
3.1B for the exemption of presenting a statement of cashflows.
Going concern
The directors have assessed the going concern status. Their assessment considered the NHQB's strategy, balance sheet and capital requirements. The directors have prepared forecasts for a period in excess of 12 months from the date of approval of these financial statements. These forecasts and projections show that the company is expected to be able to operate within the levels of its current facilities. Accordingly, they continue to adopt the going concern basis in preparing the annual report and financial statements.
New Homes Quality Board Limited
Notes to the Financial Statements for the Period from 6 January 2021 to 30 June 2022
Judgements & estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical information and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Revenue recognition
Revenue is measured at fair value of the consideration received or receivable, net of discounts and value added tax. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the entity and the revenue can be reliably measured.
The income of the organisation comprises membership fees charged to housing developers, invoiced in advance to cover a 12 month period, and recognised as income accordingly over that 12 month period.
However, in the first year 50% of the membership fee charged relates to completion of the application process, with this part of the fee recognised as income immediately. The remaining 50% represents the first 12 months membership fee which is recognised as income over a 12 month period following successful membership activation.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Office equipment |
33.33% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. The company subsequently considers the recoverable value of the trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
New Homes Quality Board Limited
Notes to the Financial Statements for the Period from 6 January 2021 to 30 June 2022
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at transaction price, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income and expenditure account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged to the profit and loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance sheet date of the expenditure requried to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.
Leases
Rentals paid under operating leases are charged to the profit and loss on a straight line basis over the term of the lease.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
New Homes Quality Board Limited
Notes to the Financial Statements for the Period from 6 January 2021 to 30 June 2022
Website and CRM development costs
The board consider costs incurred in the creation and ongoing development of the organisation's website and CRM system to be expenditure and have opted not to capitalise and amortise such costs.
Staff numbers |
The average number of persons employed by the company (including directors) during the period, was
New Homes Quality Board Limited
Notes to the Financial Statements for the Period from 6 January 2021 to 30 June 2022
Tangible assets |
Office equipment |
Total |
|
Cost or valuation |
||
Additions |
|
|
At 30 June 2022 |
|
|
Depreciation |
||
Charge for the period |
|
|
At 30 June 2022 |
|
|
Carrying amount |
||
At 30 June 2022 |
|
|
Debtors |
Current |
2022 |
Trade debtors |
|
Prepayments |
|
|
Creditors |
Creditors: amounts falling due within one year
2022 |
|
Due within one year |
|
Trade creditors |
|
Taxation and social security |
|
Accruals and deferred income |
|
Other creditors |
|
|
New Homes Quality Board Limited
Notes to the Financial Statements for the Period from 6 January 2021 to 30 June 2022
Creditors: amounts falling due after more than one year
Note |
2022 |
|
Due after one year |
||
Loans and borrowings |
|
Loans and borrowings |
2022 |
|
Non-current loans and borrowings |
|
Other loans |
|
New Homes Quality Board Limited
Notes to the Financial Statements for the Period from 6 January 2021 to 30 June 2022
Related party transactions |
Summary of transactions with other related parties
The following transactions between key management individuals and New Homes Quality Board Limited (NHQB) are considered relevant to giving a true and fair view to financial statements:
Transactions relevant to Jennifer Daly, a common director of Taylor Wimpey and Home Builders Federation.
Taylor Wimpey was invoiced £200,000 to become a member of NHQB.
Home Builders Federation loaned £250 000 interest free to NHQB. Loan remains outstanding at the end of accounting period.
Transaction relevant to Katy Jordan, a common director of Storey Homes.
Storey Homes was invoiced £74,000 to become a member of NHQB.
Transaction relevant to Steven Wood, a common director of National House Building Council.
National House Building Council loaned £750 000 to NHQB in form of sterling term loan facility. Interest accrues from day to day from relevant utilisation date at a rate of 2.5% per annum. Loan remains outstanding at the end of accounting period.