Housing tenants could possibly be given further protections and housebuilders compelled to alter 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 might “want to seek out” any competitors points that is likely to be holding again home constructing within the UK.
“The standard and price of housing is among the greatest points going through the nation,” stated CMA chief govt 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 might examine whether or not the observe 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 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 assume tank Coverage Trade 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 bear in mind how truthful 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. This may embody discovering someplace to dwell, renting and transferring between properties.
“The mission will look at the connection between tenants and landlords and the position 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 should 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 will help with.
“We’ll after all be guided by the proof, but when we discover competitors or client safety issues we’re ready to take the steps mandatory to handle them.”