In February, the Competition and Markets Authority (CMA) published its Report on the Housebuilding Market in Great Britain. The headline finding from the CMA was that the complex and unpredictable planning system, together with the limitations of speculative private development, has been responsible for the persistent under delivery of new homes.
The study also confirmed 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, together with the poor quality of some new housing evidenced by the increasing number of snagging reports over the past ten years.
At the time of publication, the CMA also opened a new investigation into the suspected sharing of commercially sensitive information by housebuilders which could be influencing the build-out of sites and the prices of new homes. I welcome this investigation and look forward with interest to its findings.
In terms of the recommendations and options for government to consider as they apply to Wales, the Welsh Government has responded to the CMA thematically, accepting the recommendations. I have lodged the full Welsh Government response in the Senedd Library for members’ information.
Some recommendations within the report will depend on action to be taken by the UK Government in collaboration with the devolved governments and I have discussed how these recommendations can be implemented with Ministers in the UK and Scottish Governments at the British Irish Council on 19 and 20 September. It is important that we work in collaboration with our partners to deliver a better deal for homebuyers.
