In a welcome development, the NHBC have confirmed that they will be updating the insolvency cover in their Buildmark Choice policy from 1 April 2025 to once again, cover deposits released to a builder before land completion. This article discusses the policy in further detail.
The detail remains to be seen but they will no longer need to issue side letters as the deposit cover will be included in the policy itself if the relevant option is selected.
We understand that all current side letters will continue to be effective for sites registered in the periods set out in those letters, so there will not be a gap in the cover provided to RPs/other relevant parties.
As above, the Section 1 insolvency cover for Buildmark Choice will still be an optional extra that builders must request, and there is no change to this process. However, it is envisaged that the updated policy booklet wording will include cover for scenarios such as 10% deposits, Golden Brick and Turnkey transactions. We await a copy of the updated policy booklet, but as soon as it becomes publicly available we will provide a further update.
If you want more information about these changes and/or how they will affect/benefit you, please get in touch.
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