Housing tenants might be given additional 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 search out” any competitors points that is perhaps holding again home constructing within the UK.
“The standard and price of housing is without doubt one of the largest points dealing with the nation,” stated CMA chief government Sarah Cardell.
The watchdog pledged to take 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 in some unspecified time in the future 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 bunch of 1000’s of houses throughout the nation.
Final week Brandon Lewis, ex-housing and planning minister, stated Britain was passing up on a close to £18bn financial increase because of the authorities and companies’ “failure to construct sufficient new” houses,.
In a foreword to a report by assume tank Coverage Change Lewis stated a long time of weak housing provide has taken its toll on households “within the type of greater home costs, greater rents and better month-to-month mortgage repayments”.
The investigation will have in mind how honest property administration charges are for issues like “unadopted” roads and facilities, the CMA stated.
The authority additionally plans to take a look at the “end-to-end expertise” that tenants undergo when renting a property. It will embrace discovering someplace to dwell, renting and shifting between houses.
“The challenge will study the connection between tenants and landlords and the function of intermediaries, equivalent to 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 life like that extra competitors alone gained’t unlock a home constructing growth.
“In the identical vein, we need to discover the experiences individuals have of the rental sector and whether or not there are points right here that the CMA may help with.
“We’ll after all be guided by the proof, but when we discover competitors or shopper safety considerations we’re ready to take the steps obligatory to handle them.”