Industry responds to CMA study update

The Home Builders Federation has responded to the news that the Competition and Markets Authority is to look “in greater detail” at five areas of the housebuilding market as part of its study into the sector which began in February, calling the study “a unique opportunity to consider the market that housebuilders operate within in a non-political environment”.

CMA said the five areas of focus will be:

* Estate management charges

* Land banks

* Planning rules

* Competition between builders

* Barriers for new businesses/SMEs wanting to build homes

HBF noted the focus on SMEs in the CMA update: “Over recent decades the industry has become a difficult one for SMEs to thrive in. The complexity and cost of the planning process, its unpredictability and the frequency with which rules are changed to meet political objectives can make planning investment very challenging.”

The CMA said in its update that it has not yet decided if it will hold a full market investigation into the sector, but instead is to consult on proposals to have a full investigation on the land banks held by the largest housebuilders and private management of public amenities on new build estates. The …