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CMA's Concerns in Housebuilding Market

26.02.2024 | 🇬🇧 UK competition authority

The CMA has raised significant concerns in the housebuilding market in Great Britain, including issues with the planning system, shortage of new homes, and potential information sharing among eight housebuilders.


The Competition and Markets Authority (CMA) has identified fundamental concerns in the housebuilding market in Great Britain, such as a shortage of new homes due to the planning system and speculative private development. Issues like estate management charges and build quality have also been highlighted. The CMA has initiated an investigation into eight housebuilders for potential information sharing, which could impact competition and prices of new homes. The CMA's recommendations include streamlining the planning system, increasing consumer protections, and addressing estate management charges and build quality issues. The market study identified weaknesses in the adoption process for roads and public open spaces, as well as the dominance of large housebuilders controlling significant developable land. While the CMA has not launched a Market Investigation Reference at this time, competition law advisors should stay informed as further investigations may be initiated if competition law infringements are suspected. Policymakers may need to consider interventions to ensure the delivery of good quality homes where needed, emphasizing fair competition to support the growth of smaller housebuilders.

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