New-build homeowners struggle to move services

Published 24th Sep 2010

New postcodes not recognised, leaving residents without utilities or insurance and unable to order online


Tens of thousands of people who moved into newly built homes last year suffered problems ordering goods or arranging utility services, according to a Royal Mail study.

The Royal Mail surveyed 168,000 properties built in 2009 and found that 74% of residents faced difficulties ordering goods and services. Another 51% – 85,600 people – had problems setting up utilities.

Its research also found that a further 34% – just over 57,000 people – had problems arranging financial services, such as home contents insurance. Things did not improve with time either, as 17% said they were still experiencing problems six months after moving.

One possible reason is that businesses do not recognise the postcode of new-build properties owing to outdated records. The problem does not become apparent until customers find themselves unable to complete purchases online or over the telephone.

Their frustration also had a direct bearing on customer loyalty. One in five respondents said they dropped their first-choice online provider for one that recognised and accepted their postcode. Another 10% chose to buy their goods on the high street instead of online to avoid hassle.

The Royal Mail also revealed in June that the number of new postcode registrations was the highest since October 2008. In particular, building developments doubled in East Anglia, from 1,002 in 2009 to 2,058 in June this year.

Steve Rooney, acting head of Royal Mail's Address Management Unit, said: "Our research shows that a worrying proportion of businesses are failing to update their records with postcodes allocated to new-build addresses. Moving house can be a stressful experience and retailers, utilities and services providers, in particular, need to make sure their customers can get the services they need to settle in to their new home.

"Correct addressing also plays a crucial role in any marketing or customer communication campaign, and it isn't just new-build properties that can be overlooked."

Neil Young, chief executive of property portfolio managers Young Group, added: "It's an issue that people have and certainly one that we expect to be a problem. We manage about 350 properties around London and it affects things like utilities and council tax, and even silly things like satnav."

Source: ' Guardian '

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