Housebuilders will be obliged to join the ombudsman so all homebuyers can get issues resolved.
Developers will be forced to pay compensation for substandard finishes on homes, under the new rules announced by housing secretary Robert Jenrick today.
The ombudsman will also have the power to ban rogue developers and order builders to carry out remedial work.
Buyers currently face long waits, as well as costly court cases, to sort problems with their new homes.
But under the ombudsman, consumers will be able to complain about a range of issues from sloppy brickwork to faulty wiring and get a faster outcome.
The independent ombudsman is to be enforced into law as soon as possible, Jenrick added.
At the same time, new measures have been confirmed to make sure all homes sold under the future Help to Buy scheme meet higher standards.
Jenrick 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.”
Earlier this month, brokers told Mortgage Solutions they believed the new build sales market needed regulatory or government intervention to solve some of the problems they were witnessing.