好色先生TV

The Competition and Markets Authority (CMA) has opened an investigation into eight of the UK鈥檚 biggest housebuilders having uncovered evidence that some housebuilders may be engaging in 鈥渁nti-competitive behaviour鈥�.

This morning the CMA published the results of a year-long study into the UK housebuilding market, which revealed that complex and unpredictable planning rules are behind persistent shortfalls in the delivery of new homes.

As part of the study, the regulator said it had found evidence indicating alleged breaches of competition law by Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey and Vistry.

The report suggests these housebuilders 鈥渕ay be sharing commercially sensitive information with their competitors鈥� to 鈥渋nfluence the price and build-out of new homes鈥�.

The CMA warns that such activity may 鈥渨eaken competition in the market鈥�.

Sarah Cardell, chief executive of the CMA, said: 鈥淭he CMA has also today opened a new investigation into the suspected sharing of commercially sensitive information by housebuilders which could be influencing the build-out of sites and the prices of new homes.

鈥淲hile this issue is not one of the main drivers of the problems we鈥檝e highlighted in our report, it is important we tackle anti-competitive behaviour if we find it.鈥�

好色先生TV of the investigation had an immediate impact on the stock market, with Taylor Wimpey鈥檚 share price down 2.8%, Persimmon dropping 2.4%, Vistry鈥檚 share price falling 1.7%, Barratt down 1.6% and Berkeley down 1.1%.

The CMA report blames a combination of the planning system and the limits of speculative private development for the persistent under-delivery of new homes. There were fewer than 250,000 homes built last year across Great Britain, falling well below the 300,000-homes target for England alone.

The report found two-fifths of homes built between 2021 and 2022 were delivered by the largest, national housebuilders while more than 50,000 homes were delivered by thousands of smaller, regional builders.

Around 60% of all houses built in 2021-22 were delivered by speculative private development 鈥� and the report suggests that a reliance on this model 鈥渉as seen the gap widen considerably between what the market will deliver and what communities need鈥�.

The CMA also suggests that private developers produce houses at a rate at which they can be sold without needing to reduce their prices, rather than, for example, providing more affordable housing.

>> See also: Big housebuilders comfortable with lack of innovation, says Gove

>> See also: Barratt and Redrow profits down on day merger between pair announced

The CMA鈥檚 report also revealed a 鈥済rowing trend鈥� for estate management charges, with 80% of new homes sold by the 11 biggest builders in 2021-22 subject to these fees.

It warned too that housebuilders do not have strong incentives to compete on quality and its analysis suggests that a growing number of homeowners are reporting a higher number of snagging issues (at least 16).

A substantial minority of new homeowners are experiencing 鈥減articularly serious鈥� problems, such as collapsing staircases or ceilings.

The CMA鈥檚 report makes several recommendations, including establishing a new homes ombudsman 鈥渁s soon as possible, and setting a single mandatory consumer code so homeowners can better pursue homebuilders over any quality issues they face鈥�.

It also recommends requiring councils to adopt amenities on all new housing estates and the introduction of enhanced consumer protections for homeowners on existing privately managed estates 鈥� including making it easier for homeowners to switch to a more competitive management company.

Marc Vlessing, chief executive of Pocket Living, said: 鈥淭his report says what we all knew. The housebuilding sector isn鈥檛 working and isn鈥檛 delivering the new homes we need.

鈥淚 now urge the chancellor to act quickly in next week鈥檚 Budget and urgently implement moves to support the SME housebuilding sector, which has seen numbers fall significantly since the 1980s, as well as go further and faster on planning reform.鈥�

A Bellway spokersperson said: 鈥淲e are reviewing the CMA鈥檚 report. Bellway has engaged and co-operated fully with the CMA throughout its market study - and will continue to do so.鈥�

A spokesperson from Bloor Homes, said: 鈥淲e have been transparent with the CMA throughout the year-long study and are currently reviewing the findings. We will continue to work with them throughout the course of the investigation.鈥�

Taylor Wimpey鈥檚 spokesperson said: 鈥淭he CMA鈥檚 report identifies proposed changes to the market that we welcome, particularly around the planning process and recognition that housebuilders do not landbank. Taylor Wimpey notes the investigation opened today and we will cooperate fully with the CMA in relation to this.鈥�

Housing Today has made efforts to contact Barratt, Berkeley, Persimmon, Redrow, and Vistry for comment.