HBF welcomes CMA probe

The Home Builders Federation has welcomed the news that the Competition and Markets Authority (CMA) is launching a market study into housebuilding.

HBF managing director Neil Jefferson said: “We welcome confirmation by the CMA that, following the housing secretary’s requests, it will undertake a market study. Independent analysis of the policy and regulatory regime the industry has to work within and the considerable constraints on delivery, especially for smaller builders, should provide food for thought for ministers as they consider how they meet their supposed commitment to build 300,000 homes a year.”

The CMA says its market study will focus on four areas:

· housing quality: looking at how builders are delivering the right sorts of homes that communities and buyers need – including the fairness of estate management fees charged for “unadopted” roads and amenities

· land management: examining whether the practice of “banking” land before or after receiving planning permission is anti-competitive

· local authority oversight: exploring how councils oversee the delivery of homes and how developers negotiate affordable home requirements

· innovation: considering whether factors may be holding builders back from adopting new building techniques or moving towards more sustainable, net zero homes

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