The Competition and Markets Authority (CMA) has today released updates concerning two key elements of the UK housing sector, focusing on consumer protection within the private rental sector and a market study into competition issues within housebuilding.
These initiatives align with the CMA’s commitment to fostering outcomes that benefit people, businesses, and the overall UK economy.
The initial findings of a consumer protection project reveal concerns that a significant minority of landlords and letting agents may not be complying with consumer protection laws.
Chief executive of the CMA, Sarah Cardell, said: “The CMA alone can’t resolve the problems in the UK housing market. But we have a role to play and will do our part to help ensure the private rental and housebuilding markets work better for people and businesses.”
“For private renters, we’re taking action to provide updated guidance for lettings agents so that both tenants and landlords are really clear about their own rights and responsibilities,” she added.
The CMA’s investigation in the private rental sector will explore five areas that have been highlighted by complaints, including concerns related to zero deposit schemes, sham licences, onerous guarantee clauses, possible unlawful discrimination, and concerns around so-called ‘event fees’ charged to elderly consumers entering specialist retirement housing.
Cardell further emphasised the CMA’s role by saying: “We’ve also identified areas of concern relating to zero deposit schemes, sham licences, onerous guarantee clauses, and possible unlawful discrimination. These warrant further investigation and we stand ready to take enforcement action if needed.”
In addressing housebuilding, Cardell added: “In housebuilding, we’ll press on with our investigation of the five areas that are the focus of our market study so that we can get to the bottom of any potential competition concerns.
“Once complete, we will consider what actions the CMA can take to tackle any concerns identified or whether there are more effective ways to deal with those concerns such as through recommendations to government for legislative change.”
