Housebuilding Market Final Study Report - highlight several key concerns
- Gaynor
- Feb 1, 2024
- 1 min read
The Housebuilding Market Study Final Report by the Competition and Markets Authority (CMA) provides a comprehensive analysis of the housebuilding industry in Great Britain (England, Scotland, and Wales). The report highlights several key concerns: the persistent shortfall in housing supply compared to government targets, the dominance of speculative housebuilding (over 60% of new builds in 2021/22), and issues related to quality, affordability, and innovation. The market is largely controlled by a few major housebuilders, with the largest 11 firms delivering around 40% of new homes. Smaller and medium-sized housebuilders (SMEs) face significant barriers to entry and expansion, including access to land, finance, and planning constraints. The report also discusses the role of local authorities and public bodies in the regulatory and planning process, acknowledging their influence on market outcomes.
The CMA refrained from launching a full market investigation but provided recommendations for policy reforms, including potential planning system adjustments, improved regulation of estate management, and measures to support SME builders to enhance competition and supply.
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