The New Homes Ombudsman will step in to help homebuyers with issues from sloppy brick work to faulty wiring.
All developers will have to belong to the Ombudsman which will have statutory powers to award compensation, ban rogue developers from building and order firms to fix poor building work.
Housing Secretary Rt Hon Robert Jenrick MP said: “It’s completely unacceptable that so many people struggle to get answers when they find issues with their dream new home.
“That’s why the Ombudsman will stop rogue developers getting away with shoddy building work and raise the game of housebuilders across the sector.
“Homebuyers will be able to access help when they need it, so disputes can be resolved faster and people can get the compensation they deserve.
“Currently, homebuyers who purchase new builds have no independent way of challenging developers’ service or poor workmanship.”