Competition watchdog probes land banks in housing investigation
T
he UK competitors watchdog has mentioned it is going to probe land banking by the nation’s greatest housebuilders because it recognized numerous considerations relating to the sector.
The Competition and Markets Authority (CMA) formally began a probe into the housebuilding sector and the non-public rental market in February.
It mentioned it was trying into the housebuilding business amid worries that builders weren’t delivering properties at an ample tempo or scale.
On Friday, the CMA outlined 5 foremost areas it’s investigating in relation to UK housebuilding.
It mentioned this may embody property administration fees, the place householders pay non-public firms to keep up issues resembling parks and roads.
The regulator will even take a look at points relating to land banks, amid considerations over whether or not some giant portfolios held by larger companies are slowing competitors or housing availability in some areas.
It can be trying into wider considerations relating to planning guidelines, competitors between builders and limitations for brand new companies wanting to construct properties.
In relation to the rental market, the CMA mentioned it was taking motion to supply up to date steerage for letting brokers relating to the rights and duties of tenants and landlords.
The CMA additionally recognized considerations associated to zero deposit schemes, sham licences, onerous assure clauses, and doable illegal discrimination.
It mentioned it is going to examine additional and can take enforcement motion if wanted.
Sarah Cardell, chief govt of the CMA, mentioned: “The CMA alone can’t resolve the problems in the UK housing market.
“But we have a role to play and will do our part to help ensure the private rental and housebuilding markets work better for people and businesses.
“In housebuilding, we’ll press on with our investigation of the five areas that are the focus of our market study so that we can get to the bottom of any potential competition concerns.
“Once complete, we will consider what actions the CMA can take to tackle any concerns identified or whether there are more effective ways to deal with those concerns such as through recommendations to Government for legislative change.”