Competition watchdog to prioritise market study into homebuilding

The Competition and Markets Authority (CMA) has decided to conduct a market study into homebuilding.

In a letter to the Secretary of State for Levelling Up, Housing and Communities, Michael Gove, the watchdog’s chief executive, Sarah Cardell, said the CMA expected that promoting competitive markets and tackling unfair practices across the accommodation sector more broadly would be a continued area of focus over the next 12 months.

She added that the CMA Board had recently considered proposals for a market study into homebuilding. “They noted that there are many factors at play in delivering affordable, high-quality places to live in but agreed that a thriving, competitive homebuilding sector is a core foundation for delivering the homes people need.”

Cardell said the CMA Board had decided in principle that homebuilding should be prioritised as the next market study that the CMA launches. “CMA staff will now finalise the proposed scope of this project, reflecting the Board’s discussion, including a conclusion on the most appropriate geographic scope.”

This will then be put to the Board for a formal decision to approve the launch of the market study, which is expected to take place in the next few weeks.

The CMA has previously undertaken work on behalf of people with leasehold homes “who fall victim to unfair terms, specifically by securing the removal of doubling ground rent clauses from leasehold contracts and obtaining refunds for thousands of householders”.