The Competition and Markets Authority (CMA) has confirmed it is working towards launching a full market study into the UK’s homebuilding sector.
This follows a letter from Sarah Cardell, Chief Executive of the CMA, the Michael Gove, Secretary of State for the Department of Levelling Up, Housing and Communities, broadly outlining the CMA’s intention for a market study.
Market studies are a tool used by the CMA to identify and tackle competition and consumer issues. In the context of housing, the CMA’s study could look at ways to boost the supply of new homes, though its exact remit is yet to be determined.
After reminding Gove of the CMA’s work regarding leasehold contracts, Cardell said:
“Looking ahead, we expect that promoting competitive markets and tackling unfair practices across the accommodation sector more broadly will be a continued area of focus over the next 12 months.”
She went on to say that a “thriving, competitive homebuilding sector is a core foundation of delivering the homes people need”, adding that such work is aligned with the CMA’s Annual Plan for the 2023/24 period as well as their medium-term priorities.
“On this basis,” said Cardell, “the Board decided in principle that homebuilding should be prioritised as the next market study that the CMA launches.”
CMA staff will now finalise the proposed scope of this project and put it to the Board for a formal decision to approve the launch of the market study, which Cardell expects to take place in the next couple of weeks.
