New home warranty schemes: developing a theoretical comparative framework using qualitative content analysis

Abstract

PurposeThe housing construction industry is one of the most lucrative sectors for developed countries. However, homebuyers are often vulnerable when left with latent building defects in their new-build house. Many nations have thus implemented new home warranty schemes to protect consumers and stimulate residential production. These warranty programs vary excessively from state to state given the distinct nature of environments. Previous studies have attempted to compare one with another but did not apply a consistent comparative method when doing so. Therefore, the purpose of this study is to identify the characteristics defining a new home warranty and to develop a standardised comparative framework.Design/methodology/approachAfter evaluating the characteristics outlined in multiple home warranty programs, a qualitative content analysis method was used to establish coding, categories and themes in order to create the framework. The methodology relied mostly on cross-referencing from academic papers, methodical reviews, government documents and professional consultant reports.FindingsThis paper reviewed warranty schemes from six countries: Canada, United Kingdom, Australia, Japan, France and Malaysia. The findings suggest that home warranty programs are defined by five main themes: political involvement; homeowner protection; financial sustainability; quality management; and dispute resolution. At the end, the research created a comparative framework of 101 codes that could be used to accurately measure the efficiency of a home warranty scheme.Originality/valueGathering all defining characteristics of new housing warranties into a unique comparative framework rectifies a gap in the literature. Such a flexible tool will aid future practitioners in the field to undertake comparative case study analysis through qualitative research methods.