UK Housebuilders Avoid Immediate Regulatory Intervention, But Sector Now Faces Fresh Scrutiny On Information Exchanges

The UK Competition and Markets Authority ("CMA") has identified "fundamental concerns" in the housebuilding sector and has made a series of recommendations for the UK, Scottish, and Welsh governments to consider, rather than progressing to a more detailed investigation where it would have the possibility of imposing binding orders addressing these concerns.

The CMA has the power to conduct statutory market studies seeking to examine the causes of why markets may not be working well, even where businesses are not suspected of breaching competition rules. After conducting a year-long market study into the housebuilding sector, the CMA has identified a series of issues, including the "complex and unpredictable" planning system, the limitations of speculative private development, concerns with private estate management charges, and a lack of competition on quality for new housing stock. To address these issues, the CMA has made a number of ambitious recommendations to