History: when did the CMA investigation into the house-building sector start?

The Competition and Markets Authority (CMA) has published its final report following its investigation into the house-building sector, which aims to provide valuable insights and recommendations to the governments of England, Wales, and Scotland on evidence-based policymaking. Now, Sarah Cardell, the Chief Executive of the CMA, has written to The Rt Hon. Michael Gove, MP and Secretary of State for Levelling Up, Housing and Communities, highlighting a few key aspects of the report and past discussion on the subject.

In late 2022 and early 2023, Sarah met with government officials and stakeholders regarding the CMA's support for a market study into the house-building sector. According to Sarah, the study is focused on achieving significant consumer impacts and represents a huge step forward in understanding the dynamics of the house-building market in Great Britain. While recognising that the CMA alone cannot resolve all issues in the UK housing market, the study offers an unbiased assessment and well-defined recommendations for policymakers to consider.

CMA housebuilding sector investigation set to reveal why UK housing market is failing

The study reveals that the house-building market has consistently failed to deliver what consumers need for many decades. It identifies potential drivers of these issues, including challenges in the planning system, land market operations, and house builders' incentives and behaviour.

The recommendations of the CMA house-building sector investigation revealed...

To address the challenges in the planning system, land market operations, and house builders' incentives and behaviour effectively, the CMA has proposed a series of actions falling into three broad categories:

1. Practical recommendations about the problem areas within the market's operation.
2. Options regarding complex interactions with wider policy aims, such as planning systems.
3. Highlighting considerations regarding more fundamental actions that could affect housing market outcomes.

Recommendations to governments include measures such as

• Appointment of councils to adopt amenities on new housing estates.
• Appointing a New Home Ombudsman to address quality issues faced by homeowners.
• Streamlining planning systems and incentivising builders to diversify tenures and types of homes delivered.

Given the implications for several UK government departments, the CMA has engaged with relevant stakeholders and has stated that it welcomes further discussions to ensure the effective implementation of recommendations.

One CMA house-building sector investigation ends, and a new investigation starts... 

Despite the conclusion of the market study, the CMA has initiated a new investigation into information sharing between house builders to address potential anti-competitive behaviour. This ongoing work complements the recommendations aimed at improving the functioning of the house-building market. The CMA has stated that it remains committed to promoting competition and consumer welfare in the house-building sector. Its findings and recommendations aim to drive positive change for homeowners and consumers across the UK.