Housing tenants could possibly 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 could “want to seek out” any competitors points that could be holding again home constructing within the UK.
“The standard and price of housing is without doubt one of the greatest points dealing with 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 could 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 corporations are sitting on sufficient land to construct lots of 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 enhance as a result of authorities and companies’ “failure to construct sufficient new” houses,.
In a foreword to a report by suppose tank Coverage Alternate Lewis stated a long time 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 take note of 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. This can embrace discovering someplace to dwell, renting and transferring between houses.
“The mission will study 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 have to be reasonable that extra competitors alone received’t unlock a home constructing increase.
“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 will help with.
“We are going to in fact be guided by the proof, but when we discover competitors or shopper safety issues we’re ready to take the steps mandatory to handle them.”