The government has published its response to the CMA’s housebuilding study with the housing minister saying he will “empower homeowners to challenge developers over poor quality new homes and bad service”.
The study called for the implementation of a new consumer code for housebuilders and the creation of a New Homes Ombudsman to give more power to homeowners,
Housing and planning minister, Matthew Pennycook, said: “The government has committed to delivering 1.5 million homes in this parliament, including the biggest increase in social and affordable housing in a generation.”
“The CMA was right to highlight areas for improvement in the housebuilding market. That is why 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.”
“Alongside this, our updated National Planning Policy Framework and the reinstatement of mandatory housing targets for councils will ensure communities have the homes and necessary infrastructure to thrive.”
Sarah Cardell, CEO of the CMA, said: “We welcome the government’s response to our recommendations on housebuilding, which we put forward to get people better protections and open the door to delivering more good quality homes.”
“Housing is an essential area for consumers and driving economic growth, so we will assist the government as they take forward our solutions, alongside progressing our wider housing work.”
Earlier this year, the CMA made 11 recommendations highlighting ongoing issues in the housebuilding market which the government is now working to address. As well as the recommendation for a new consumer code and New Homes Ombudsman service, the government also accepted the CMA’s suggestions to provide greater protections for household living under private management arrangements. This would mean more transparency for the consumer over what they are paying for as well as allowing them to challenge unfair costs at a tribunal.
The government will also implement measures to improve transparency as part of the Leasehold and Freehold Act 2024 and consult on further options to make sure estate managers can be properly challenged for the money they spend.
The government said that several other recommendations will require further work and consultation to find the best solutions, including the best way to address the injustice of ‘fleecehold’ private estates.
