A damning report into the health of Britain’s housebuilding sector pulled no punches on Monday, as the competition watchdog raised concerns over decades of failure.
The list of criticisms directed towards developers was wide-ranging, as the Competition and Markets Authority (CMA) attacked shoddily built properties, excessive fees and inescapable management schemes.
Underpinning everything was a view that the quality of UK homes has fallen far short of where it needs to be.
As a result, the CMA has launched an investigation into eight major housebuilders for suspected breaches of competition law, with further evidence needed before any potential action is taken.
However, beyond problems with individual businesses, the CMA stressed that a more structural overhaul is needed – which is something the regulator cannot achieve alone.
In an usual move, the CMA called for “fundamental interventions that go beyond the way in which the housing market itself works” – as it specifically singled out Britain’s broken planning system.
The bottom line, the CMA said, is that too few homes are being built – particularly in places where they are needed most.
It laid out a series of recommendations, including clearer local authority targets and a more streamlined sign-off process, as CMA officials called for the Government to intervene on an issue that will dominate headlines in the run-up to the election.
Labour leader Sir Keir Starmer has already made his pitch, as he said during his 2023 conference speech that he will “bulldoze” Britain’s planning system and build 300,000 homes a year.
It echoes a target laid out by the Conservatives in their 2019 election manifesto – one that has never been met.
Last year, Britain built 234,000 new homes, more than at any point in the previous four years but well below the Government’s 300,000 per year target.
