Government Responds to CMA Housebuilding Recommendations

THE GOVERNMENT has published its response to the Competition and Market’s Authority’s (CMA) housebuilding study.

It includes bringing forward a new consumer code for housebuilders and a New Homes Ombudsman service to help homeowners to stop substandard house building.

Housing and Planning Minister, Matthew Pennycook said: “The CMA was right to highlight areas for improvement in the housebuilding market. We will empower homeowners to challenge developers over poor quality new homes and bad service, and we will consider the best way to address the injustice of ‘fleecehold’ private estates to bring unfair costs to an end.

CMA Housebuilding Recommendations

Earlier this year the CMA made 11 recommendations to improve the housebuilding market.

One recommendation is to provide occupiers with private management agreements more information about what they are paying for and allowing them to challenge unfair costs at a tribunal.

The government says it will consult on the best way to stop unfair ‘fleecehold’ private estates.

It says it will also improve transparency as part of the Leasehold and Freehold Act 2024, consulting on options to make estate managers accountable for the money they spend.

It is hoped that government guidance for residents’ management companies will support them managing amenities on housing estates, such as drainages and open spaces, including appointing a managing agent to oversee services.

The CMA also proposed 11 additional options that include wider planning reforms including mandatory housing targets for councils and ‘grey belt’ release.

This Planning and Infrastructure Bill aims to modernise the planning system, increasing housebuilding and deliver major infrastructure projects faster.

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