The UK’s Competition and Markets Authority (CMA) has launched a new market study into the housebuilding sector and a separate consumer protection project related to rented accommodation.
The move comes amid widespread concerns about housing availability and costs.
The CMA’s market study into housebuilding will focus on four key areas: housing quality, land management, local authority oversight, and innovation.
It will also consider the issues faced by smaller, regional firms. The CMA will use compulsory information-gathering powers to probe the entire market.
The consumer protection project related to rented accommodation will examine the end-to-end experience from a tenant’s perspective, including finding somewhere to live, renting a property, and moving between homes.
It will also identify the consumer protection issues that may arise, such as the relationship between tenants and landlords and the role of intermediaries such as letting agents.
Sarah Cardell, chief executive of the CMA, said that if the study finds competition or consumer protection concerns, the CMA is prepared to take the necessary steps to address them.
She added: “The quality and cost of housing is one of the biggest issues facing the country. Over the last few years, the CMA delivered real change for leaseholders, with tens of thousands of homeowners receiving refunds after being overcharged unfair ground rents.
“With that work nearly finished, we’re now looking to probe in more detail two further areas – the housebuilding and the rental sectors.
“If there are competition issues holding back housebuilding in Britain then we need to find them. But we also need to be realistic that more competition alone won’t unlock a housebuilding boom.
“In the same vein, we want to explore the experiences people have of the rental sector and whether there are issues here that the CMA can help with.
“We will of course be guided by the evidence, but if we find competition or consumer protection concerns we are prepared to take the steps necessary to address them.”
The CMA’s initial findings and proposed next steps will be reported this summer, following a period of targeted stakeholder engagement across England, Scotland, Wales, and Northern Ireland.
