The Competition Authority has launched two new investigations into the UK property crisis.
The Competition and Markets Authority (CMA) has announced a housing market study and a separate consumer protection study in the rental sector.
The CMA decision follows an exchange of letters between Housing Secretary Michael Gove and CMA head Sarah Cardell calling for an investigation into the sector.
He stated that he was responding to “widespread concerns about the affordability and cost of housing.”
Ms Cardell said: “In recent years, the CMA has brought real change to renters, with thousands of homeowners receiving refunds after overcharging for unfair property rents.
“Now that the work is almost complete, we want to take a closer look at the other two areas: residential and rental.”
She said that if there are “competition issues” affecting housing, the CMA should find them, but warned that “increased competition alone will not lead to a housing boom.”
Builders have dismissed claims that they are not delivering enough homes, or not building them quickly or with sufficient quality to meet demand, citing supply chain issues, labor shortages and outdated local planning processes.
The CMA study will look at construction quality, land management, whether the practice of “banking” land is anti-competitive, oversight by local authorities, and whether innovation is being stifled.
The Watch will also look at tenants’ experiences in the rental sector, examining “the relationship between tenants and landlords and the role of intermediaries such as landlords.”
More than 4.5 million UK households rent privately, with around 11 million people dependent on a landlord. Housing advocates say that for decades British tenants had very few rights and remedies.
There were 5,409 homeowner arrests between October 1 and December 31 last year, nearly double the number from the same period in 2021, according to the Justice Department.
The CMA said initial results and proposed next steps will be published this summer.
Source: I News
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