The government says it’s going to use its reforms of the housing industry to encourage owners to challenge builders and developers over quality.
Housing Minister Matthew Pennycook made the statement in a formal response to the Competition and Markets Authority’s (CMA) recommendations to improve the new build homes sector.
Pennycook says: “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.”
Earlier this year the CMA made 11 recommendations highlighting ongoing issues in the housebuilding market.
The new government says it’s now accepted the recommendations to bring forward a new consumer code for housebuilders and a New Homes Ombudsman service to empower owners “to rightly challenge developers for any quality issues they face in their home.”
Other recommendations accepted in principle include greater protections for households living under private management arrangements. This would see homeowners receiving more information about what they are paying for as well as allowing them to challenge unfair costs at a tribunal.
The government says it will implement measures to improve transparency as part of the Leasehold and Freehold Act 2024 and will also consult on further options to make sure estate managers can be “properly challenged” for the money they spend.
Pennycook says several of the other recommendations will require further work and consultation to ensure the best policy solutions can be identified and enacted. This includes consulting on the best way to address the injustice of what he calls ‘fleecehold’ private estates.
The CMA also proposed 11 additional options that include wider planning reforms. Many of these options are already being considered as part of the revised National Planning Policy Framework which will see mandatory housing targets for councils and low quality ‘grey belt’ released.
Sarah Cardell, chief executive of the CMA, adds: “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 government as they take forward our solutions, alongside progressing our wider housing work.”
Source – Estate Agent Today