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Government Responds to CMA Housebuilding Study with New Consumer Protections

22.10.2024 | 🇬🇧 UK competition authority

The government has announced plans to implement new consumer protections in the housebuilding market in response to the CMA's recommendations, including a consumer code for housebuilders and a New Homes Ombudsman service.


The UK government has unveiled its response to the Competition and Market Authority's (CMA) study on housebuilding, committing to address ongoing issues in the market. This includes introducing a new consumer code for housebuilders and establishing a New Homes Ombudsman service to empower homeowners to challenge developers over quality issues.

Housing and Planning Minister, Matthew Pennycook, emphasized the government's commitment to delivering 1.5 million homes, with a focus on social and affordable housing. The government aims to tackle poor quality new homes, bad service, and unfair costs on 'fleecehold' private estates.

The CMA's CEO, Sarah Cardell, welcomed the government's response, highlighting the importance of consumer protections in the housing sector for economic growth. The CMA's recommendations aim to improve housing quality and provide better safeguards for consumers.

The government has accepted recommendations for a new consumer code, a New Homes Ombudsman service, and greater protections for households under private management arrangements. Measures will be implemented to enhance transparency and challenge unfair costs, with a focus on supporting residents' management companies in effectively managing amenities.

Further work and consultation will be needed to address some recommendations, including finding solutions for 'fleecehold' private estates. The government is also considering wider planning reforms to accelerate housebuilding and infrastructure projects, in line with the revised National Planning Policy Framework and the Planning and Infrastructure Bill.

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