This is very serious. Your home is at a very real risk of serious structural damage if the earth bank collapsed into it. You and other occupants in the home may also be in danger!
As a matter of urgency, you need to get a solicitor's letter sent to both the NHBC and Abbey New Homes today, informing them of the potentially serious nature and that if the worst happens, you would sue for negligence - a claim that could well run into seven figures including costs.
The NHBC warranty your home for structural defects. An unstable earth bund would result in a claim under the warranty. Abbey New Homes have a duty of care. Neither can shirk their legal responsibilities.
Given what you have said, any retaining structure will need to be designed by a qualified structural engineer, not some inexpensive, ad-hoc timber terraced palisade! I doubt even a thick blockwork wall would be sufficient strength unless it was heavily reinforced. My guess is, everyone is avoiding the only possible solution, a reinforced concrete retaining wall, which will be very expensive. No wonder Abbey Homes MD won't sign it off!
You need to focus on the serious matter of the unstable earth bund threatening your home rather than the cosmetics of your garden as it is.
Abbey New Homes are contractually bound to provide you with what you were sold and promised. The garden will be levelled and turfed eventually. I believe it is being delayed until the retaining wall is designed constructed.
You should not be expected to lose a third of your garden, just so Abbey New Homes can save the additional cost of constructing a stronger and more costly retaining wall at the boundary.
You have two years after moving in to raise a claim using the Consumer Code for Home Builders Adjudication Scheme, however, the maximum claim value is only £15,000 and it specifically does not cover loss of property value. The Small Claims court maximum claim of just £10,000. Both will cover the cost of landscaping your garden but not loss of property value if a section of your garden is "taken away" (unusable) for the retaining structure.
Please do, attach some photos.