The UK Government is taking steps to address issues in the housebuilding sector, following a study by the Competition and Market’s Authority (CMA).
- A new consumer code for housebuilders and a New Homes Ombudsman service will be introduced, empowering homeowners to address quality concerns.
- The Government plans to implement greater protections for households under private management arrangements, ensuring transparency in costs.
- Significant emphasis is being placed on delivering 1.5 million homes, with a focus on increasing social and affordable housing.
- The CMA’s recommendations have been broadly accepted, with the Government working to ensure higher standards and protections for new homebuyers.
The UK Government has responded proactively to the findings of the Competition and Market’s Authority (CMA) regarding the housebuilding industry. Recognising the importance of addressing quality concerns, a new consumer code specifically for housebuilders will be established. This initiative, accompanied by the launch of a New Homes Ombudsman service, aims to empower homeowners to address quality issues in their new homes and hold developers accountable.
In addition to the consumer code, the Government intends to enhance protections for those living under private management arrangements. This move will provide homeowners with greater clarity regarding charges they face and the opportunity to contest any unfair costs through a tribunal. Such measures are indicative of the Government’s commitment to ensuring fairness and transparency in the housing sector.
Housing and Planning Minister Matthew Pennycook has reiterated the Government’s dedication to a significant expansion in housing, committing to constructing 1.5 million homes during the current Parliament. This plan promises the largest increase in social and affordable housing in recent decades, aiming to address the nation’s pressing housing needs. The updated National Planning Policy Framework and reinstated mandatory housing targets for local councils are pivotal elements in achieving these ambitious objectives.
Sarah Cardell, CEO of the CMA, has voiced support for the Government’s planned measures, emphasising the fundamental role housing plays in consumer welfare and economic growth. The CMA’s proposals serve to not only protect consumers but also facilitate the delivery of higher quality homes across the country.
The Government’s acceptance of a unified mandatory consumer code and the establishment of the New Homes Ombudsman Scheme are pivotal steps towards enhancing the standards expected of developers. Rob Brighouse, chair of the New Homes Quality Board, has highlighted the advantages of having a singular framework that ensures consistent quality and customer service standards across the industry. This unified approach is expected to provide all new homebuyers with equal avenues for redress and protection.
The Government’s commitment to implementing the CMA’s recommendations marks a substantial step towards improving standards and protections in the housebuilding sector.
