CMA launches investigation into eight house builders

The CMA said that it has not reached any conclusions at this stage as to whether competition law has been infringed.

The investigation was launched after the CMA published its final report on the housebuilding market in Great Britain, which found “fundamental concerns” in the market.

The CMA found evidence during the study which indicated that some house builders may be sharing commercially sensitive information with their competitors, which could be influencing the build-out of sites and the prices of new homes.

“While the CMA does not consider such sharing of information to be one of the main factors in the persistent under-delivery of homes, the CMA is concerned that it may weaken competition in the market,” the body said.

Sarah Cardell, the authority’s chief executive, said: “The CMA has also today [26 February] opened a new investigation into the suspected sharing of commercially sensitive information by house builders which could be influencing the build-out of sites and the prices of new homes.”

“While this issue is not one of the main drivers of the problems we’ve highlighted in our report, it is important we tackle anti-competitive behaviour if we find it.”

The CMA said the study found that the “complex and unpredictable planning system, together with the limitations of speculative private development, is responsible for the persistent under-delivery of new homes”.

The study also found “substantial concerns” about estate management charges, with homeowners often facing “high and unclear” charges for the management of facilities such as roads, drainage and green spaces.

Concerns have also been found with the quality of some new housing after the number of homeowners reporting that snagging issues has increased over the past 10 years.

Ms Cardell said: “Housebuilding in Great Britain needs significant intervention so that enough good-quality homes are delivered in the places that people need them.

“Our report – which follows a year-long study – is recommending a streamlining of the planning system and increased consumer protections. If implemented, we would expect to see many more homes built each year, helping make homes more affordable.

“We would also expect to see fewer people paying estate management charges on new estates and the quality of new homes to increase. But even then, further action may be required to deliver the number of homes Great Britain needs in the places it needs them.”