Housing tenants might be given further protections and housebuilders pressured to vary their practices, the competitors watchdog has warned.
The Competitors and Markets Authority (CMA) has introduced a probe into the constructing and rental sectors, saying it will “want to seek out” any competitors points that may be holding again home constructing within the UK.
“The standard and value of housing is without doubt one of the greatest points going through the nation,” stated CMA chief government Sarah Cardell.
The watchdog pledged to have a look at 4 areas in the home constructing sector – construct high quality, land administration, innovation, and oversight by native authorities. It stated that it will examine whether or not the follow of “banking” land is anti-competitive.
That is when a property developer buys a plot to construct on sooner or later sooner or later, however then doesn’t develop it for a very long time.
It’s estimated firms are sitting on sufficient land to construct a whole lot of hundreds of properties throughout the nation.
Final week Brandon Lewis, ex-housing and planning minister, stated Britain was passing up on a close to £18bn financial increase as a result of authorities and companies’ “failure to construct sufficient new” properties,.
In a foreword to a report by suppose tank Coverage Alternate Lewis stated many years of weak housing provide has taken its toll on households “within the type of increased home costs, increased rents and better month-to-month mortgage repayments”.
The investigation will have in mind how truthful property administration charges are for issues like “unadopted” roads and facilities, the CMA stated.
The authority additionally plans to have a look at the “end-to-end expertise” that tenants undergo when renting a property. It will embrace discovering someplace to reside, renting and shifting between properties.
“The challenge will study the connection between tenants and landlords and the function of intermediaries, resembling letting brokers,” it stated.
Ms Cardell stated: “If there are competitors points holding again housebuilding in Britain then we have to discover them. However we additionally have to be practical that extra competitors alone received’t unlock a home constructing growth.
“In the identical vein, we wish to discover the experiences folks have of the rental sector and whether or not there are points right here that the CMA might help with.
“We are going to in fact be guided by the proof, but when we discover competitors or client safety considerations we’re ready to take the steps obligatory to deal with them.”