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CMA update on housing sector

ended 25. August 2023

The Competition and Markets Authority (CMA) today issued updates on 2 pieces of work in the housing sector. Its initial assessment of the private rental sector suggests a significant minority of landlords and letting agents may not be following consumer protection rules. Also, five areas it said are to be probed further in the next phase of the housebuilding market study include estate management charges and land banking. You can read the full report >> here <<. UK news agency, Newspage, sought the views of property and mortgage experts, below.

3 responses from the Newspage community

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Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
When it comes to certain larger house builders accruing and sitting on large swathes of land, these corporates need to be held accountable. The words "use it or lose it" need to be implemented by the Government to stop these tactics from happening, with penalties in place, or retendered, which then opens the land up to the smaller building companies that can fulfil the house building process in a timely and cost-effective manner.
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Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
It's commendable that the CMA is initiating measures in favour of private renters and probing housebuilding practices. The balance of power has been skewed towards a minority for an extended period, and it's about time we had a more level playing field. Encouraging competition can stimulate innovation, productivity and efficiency. In the midst of a national housing shortage, the practice of land banking certainly warrants scrutiny. Without such interventions, addressing the housing crisis in this nation will remain pipedream.
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Kundan Bhaduri
Property Developer and Portfolio Landlord at The Kushman Group
We are missing the elephant in the room and going for the monkeys. Of course, we need to make sure all businesses follow consumer protection laws and are compliant. However, this lucrative idea for the pen pushers and civil servants to make a meal out of this and introduce more regulation and more red tape will only alienate landlords and property professionals further away from the market.

Nobody denies that the CMA must make sure that consumers are protected, but until fundamental and underlying issues in the housing market are solved, unscrupulous actors in the market will continue to exploit the scant available resources. This does nobody any good.