Industry mostly welcomes CMA report

Yesterday (February 26), the Competition and Markets Authority published its report into the operations of the housebuilding industry.

It found that the complex planning system and the nature of the speculative development model was the cause of the under delivery of new homes. It also found that land banking was not a major reason for a lack of new home supply but highlighted problems with estate management charges and redress on new homes quality.

The CMA said that a substantial intervention in the housebuilding market is necessary to address the issues that its market study has identified.

It said it had also found evidence indicating some housebuilders may be sharing commercially sensitive information with their competitors, and has launched an investigation into Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey, and Vistry. It stressed that it has not reached any conclusions at this stage as to whether or not competition law has been infringed.

The CMA’s recommendations include:

* requiring councils …