Structural warranties for council housing and local authority housing companies
Latent defects cover for homes built by councils, their wholly owned housing companies and other delivery vehicles - whether the homes are let, sold or a mix of both.
- Instant response
- Insurer quotes usually within one working day of your proposal
- UK FCA Regulated Broker
- No broker fee to pay
- Rent, shared ownership and sale
Local authority delivery
Council house building has changed, and so has the warranty question
Councils now deliver new homes in several ways - building directly for their own stock, through wholly owned housing companies, through joint ventures with developers or housing associations, and by buying homes on section 106 sites. The right approach to a council housing warranty depends on the route you take and what happens to the homes afterwards.
- Homes for sale or shared ownership - buyers' lenders will normally expect a warranty from a provider they accept
- Homes let at market or intermediate rent through a housing company, which may be refinanced or sold on later
- Homes kept as council housing, where a warranty is a decision for the council and its advisers
- Joint ventures, where the partners need to agree who arranges cover and who it protects
Housing companies and delivery vehicles
Warranties for local authority housing companies
A wholly owned housing company usually builds or buys homes to let or sell, and may borrow from the council or from other lenders. A structural warranty helps keep those homes mortgageable and saleable, and gives the company long-term protection against serious hidden defects in the structure.
Procurement
Public sector housing is often built under frameworks and design and build contracts. The contract should say who arranges the warranty, which providers are acceptable and who receives the certificates.
Governance
Councils and their companies have their own approval processes. You receive a written quotation, our terms of business and a statement of your demands and needs, ready for your records and your decision makers.
Programmes of small sites
Many councils build on several small sites at once. Each site is usually registered separately, and we help keep the certificates for the whole programme in order.
Timing
Register before the first spade goes in
Council schemes can take a long time to reach site, then move quickly once the contract is let. Ask for warranty terms while the design is being finalised, so the scheme can be registered before work starts and the provider's surveyor can see the foundations before they are covered up.
If homes have already been started, or a council takes over a stalled site part way through, retrospective cover may be possible from some providers with more evidence and at a higher cost. The sooner you ask, the more options there are.
Council housing warranties - common questions
Do council homes kept for rent need a structural warranty?
Usually no law requires one. Some councils rely on the contractor's obligations and their own repair budgets, and others want independent cover for serious defects that appear after the contractor's defects period has ended. If any homes might be sold later, for example to tenants or on the open market, buyers' lenders are likely to ask about a warranty, and arranging one after completion is harder and costs more.
Can you arrange a warranty for a council's wholly owned housing company?
Yes. The company is often treated as the developer for warranty purposes, though it depends on how the scheme is procured and on the provider, and the scheme is registered before work starts. We deal with the company's officers and advisers directly.
We are building on several small sites. Does each need its own warranty?
Usually each site is registered separately, with a certificate for each home. Some providers can handle a programme of sites together, which can simplify inspections and administration - we can ask for you.
Can the warranty be included in the contractor's price?
It can. Some councils ask the contractor to arrange the warranty as part of a design and build contract. If you do, set out the cover you expect in the contract, and check the provider is acceptable to any lenders who may be involved later.
Tell us about your council scheme
Give us the site, the number of homes and who will own them, and we will come back with the providers likely to cover it and what they will need.
- Takes under a minute
- Instant reply by email with your reference
- Insurer quotes usually within one working day of your completed proposal
- Schemes anywhere in England, Scotland, Wales and Northern Ireland
- Free and no obligation
Already filled in a proposal form? Email it to us or send it on WhatsApp with any drawings you have and we will take it from there.
