"New homes should be covered by an Ombudsman, as consumers have no idea that when they buy a new home directly from a developer they will have no access to a redress scheme. "
In a statement, the government said the Ombudsman - which all developers will be required to join - would support homebuyers facing problems with their newly built home and will "hold developers to account".
The government also announced further plans to speed up the planning system as well as make better use of land and vacant buildings to provide the homes that communities need.
This will include more flexibility to extend upwards on existing blocks of flats, shops and offices.
Local authorities will also receive additional freedom to make the most of existing brownfield land and dispose of surplus land that could instead accommodate new homes.
Additionally, £165 million has been announced to unlock up to 5,100 homes in Birmingham and provide the infrastructure to support these new homes.
Katrine Sporle, The Property Ombudsman, said: “We welcome the news that Government will launch a New Homes Ombudsman. We have always agreed that new homes should be covered by an Ombudsman, as consumers have no idea that when they buy a new home directly from a developer they will have no access to a redress scheme. This announcement will mean the housing market becomes a fairer place for all involved.”