He will leave at the end of this month when NHBC chairman Isabel Hudson will step up to become interim executive chairman.
Farookhi said: “I have been planning my departure and succession for the last two years, and following the completion of NHBC’s 75th anniversary celebrations and more importantly, the successful appointment of Isabel Hudson as chairman, I think now is the right time for me to move on.
“I leave behind a strong, trusted organisation that has had a positive impact on the new homes industry and made a real difference to new homeowners.
“NHBC has a strong Board and executive team, and together we surmounted the strategic challenges over the last 14 years.
“Now, I wish NHBC every success in the future as it faces new challenges, and I have no doubt it will continue to go from strength to strength under its new leadership.”
Hudson said; “The NHBC Board is grateful to Mr Farookhi for the stability and vision he has brought as chief executive over 14 years, during which he has helped shape the modern day NHBC.
“He was a major influence on the establishment of the Zero Carbon Hub which has been so influential in shaping the future for new homes, and in recent years also focused on the importance of homeowner satisfaction, which has significantly improved in recent years and currently stands at record levels.
“One his major contributions was the creation, in 2006, of the NHBC Foundation, the collaborative research arm which is recognised for its research both nationally and internationally and has helped to establish NHBC as a world leader in new-build standards and consumer protection.”
Hudson has worked in the insurance and finance sectors for thirty years including for GE Capital, as executive director of the Prudential’s UK business, chair of Prudential International Assurance and chief financial officer of Eureko.
She is also currently non-executive director on the boards of MGM Advantage, QBE Insurance Group, The Pensions Regulator, and Phoenix Group Holdings.