Housebuilder Persimmon is to allow homebuyers to hold back retentions until snagging issues are dealt with, in a bid to improve its reputation for quality and customer care.
The company announced that it would “assure high finish standards” by allowing homebuyers to withhold a maximum of 1.5% of the cost of the home that they had bought via their solicitor.
The percentage equates to around 6% of the build fabric costs and represents on average of £3,600.
Persimmon said it had instructed its legal advisers to start work on drawing up the detail of a new standard contract and expects the policy to be fully in place by the end of June.
Dave Jenkinson, chief executive officer of Persimmon, said: “Persimmon is listening hard to all of its stakeholders and we hear the message that we need to continue to raise our game in customer care.”
“Moving into a new home should be a positive experience enhanced by all the benefits of a new build that is designed for modern living. We are determined that the experience is not overshadowed by teething problems and providing a homebuyer’s retention is an important step towards achieving this.”
Jenkinson was appointed interim CEO of Persimmon in November 2018 after the departure of Jeff Fairburn, who became embroiled in a controversy over his remuneration – said to involve a £75m bonus – which the company said had become a “distraction”.
Roger Devlin, Persimmon’s chairman, said: “This is a first among the UK’s large housebuilders and I hope will lead the way in change across the sector. This move, and the urgency with which we will introduce it, is a clear and unambiguous signal of cultural and operational change at Persimmon, putting customer care at the very centre of the business.”
