皇冠体育app

皇冠体育app Competition and Markets Authority (CMA) today issued updates on 2 pieces of work in the housing sector 鈥� and .

As set out in its annual plan, the CMA is prioritising outcomes which help people, businesses, and the UK economy 鈥� and a critical part of this is ensuring that competition and consumer rights are protected in relation to where people live.

Sarah Cardell, Chief Executive of the CMA, said:

鈥溁使谔逵齛pp CMA alone can鈥檛 resolve the problems in the UK housing market. But we have a role to play and will do our part to help ensure the private rental and housebuilding markets work better for people and businesses.

鈥淔or private renters, we鈥檙e taking action to provide updated guidance for lettings agents so that both tenants and landlords are really clear about their own rights and responsibilities. We鈥檝e also identified areas of concern relating to zero deposit schemes, sham licences, onerous guarantee clauses, and possible unlawful discrimination. 皇冠体育appse warrant further investigation and we stand ready to take enforcement action if needed.

鈥淚n housebuilding, we鈥檒l press on with our investigation of the 5 areas that are the focus of our market study so that we can get to the bottom of any potential competition concerns. Once complete, we will consider what actions the CMA can take to tackle any concerns identified or whether there are more effective ways to deal with those concerns such as through recommendations to government for legislative change.鈥�

Consumer protection in rented sector

While many landlords and letting agents are providing a good service, initial engagement by the CMA heard many complaints raised by stakeholders suggesting that a significant minority are not complying with consumer protection law.

To help letting agents understand their obligations, the CMA will update its guidance for lettings professionals. If any letting agency or landlord is found to be in breach of the law, then the CMA does not rule out launching enforcement action.

Following its initial engagement, the CMA鈥檚 investigation will explore the 5 areas highlighted by stakeholder complaints:

• Zero deposit schemes: 皇冠体育appse schemes alleviate the need for tenants to come up with a hefty deposit when they enter a tenancy, but the CMA has heard concerns that tenants may be unaware of their liabilities under such schemes, alongside reports of pressure selling and undisclosed commissions earned by letting agents.

• Sham licences: 皇冠体育app CMA has been told that there are still landlords who claim that tenants have licences to occupy rather than assured tenancies and who fail to recognise the rights that consumers have under a tenancy.

• Guarantees: 皇冠体育app CMA has seen examples of onerous guarantee clauses which impose wide obligations on tenants 鈥� such as requiring them to provide extensive evidence of assets.

• Activity that could constitute unlawful discrimination: This includes, for example, looking at those who advertise properties as not available to housing benefit claimants (i.e. 鈥榥o-DSS鈥�).

• Retirement housing fees: 皇冠体育app CMA鈥檚 initial engagement also heard concerns around so-called 鈥榚vent fees鈥� charged to vulnerable tenants entering specialist retirement housing. 皇冠体育app CMA will review practices in the sector and whether some businesses are taking advantage of elderly consumers.

More information can be found on the rented housing sector consumer project case page.

Housebuilding market study

After receiving feedback from key stakeholders in the sector 鈥� which included housebuilders of all sizes, campaign groups, councils, and devolved administrations 鈥� the CMA will now look at 5 areas in greater detail as the market study progresses:

• Estate management charges: Evidence has shown a significant number of new housing estates built over the last 5 years have not been taken on (a process known as adoption) by their local authority 鈥� meaning homeowners are required to pay a private management company to maintain amenities such as roads, parks, and street lighting. This has led to concerns about high or uncapped charges for owners and the quality of work carried out in maintaining these amenities.

• Land banks: Analysis of the housing market shows the largest builders in the UK hold large swathes of land, and that these land banks have grown in recent years, leading to concerns from some stakeholders this may be limiting competition or slowing build-out rates in some areas.

• Planning rules: Concerns expressed by some stakeholders suggest that complex planning rules and uncertainty of decision making were hindering the delivery of new homes 鈥� particularly for smaller housebuilders that have less resources to help manage the planning process.

• Competition between builders: 皇冠体育app market study has found that, at the national level, the housebuilding market does not appear to be particularly concentrated, with a number of large housebuilders competing alongside smaller, regional firms. 皇冠体育app CMA is now considering the number of competitors in particular areas and the extent to which small and medium sized housebuilders are able to compete in these local markets.

• Barriers for new businesses wanting to build homes: 皇冠体育app CMA has heard concerns about barriers facing small and medium-sized builders and the particular issues they face when delivering new homes (for example, access to land).

皇冠体育app CMA will investigate each of these issues further 鈥� while considering the economic conditions affecting the sector 鈥� and will provide updates on its work later in the autumn. This will include publishing working papers on estate management charges, land banks, and planning rules.

皇冠体育app CMA will then consider a range of options to best address the issues it has identified, which could include recommending legislative changes to the UK, Scottish and Welsh governments, or launching a market investigation (see note 5).

More information can be found on the housebuilding market study case page.

NOTES TO EDITORS

1. Both the consumer protection project on private rental accommodation and housebuilding market study were launched in February 2023. 皇冠体育app CMA has today , which covers both projects.
2. 皇冠体育app CMA鈥檚 has looked into the experiences of tenants and landlords across all 4 nations of the United Kingdom. This followed work by the CMA to remove doubling ground rent clauses in leasehold contracts, and to obtain refunds for thousands of leaseholders. Consumer protection work is also underway with the CMA looking at misleading green claims made by businesses selling and installing green home heating products.
3. 皇冠体育app . 皇冠体育app market situation in Northern Ireland is significantly different from the rest of the UK, such that Northern Ireland appears unlikely to face the same market or supply-side issues, and therefore the housebuilding market study has not included Northern Ireland.
4. Market studies examine why particular markets may not be working well for consumers. 皇冠体育appy may lead to a range of outcomes, including: a) making recommendations to the government to change regulations or public policy; b) encouraging businesses in the market to self-regulate; c) taking consumer or competition law enforcement action against firms; d) making a reference for a more in-depth market investigation; e) 鈥渃lean bill of health鈥�.
5. With regard to the private management of public amenities on new-build estates and the land banks controlled by the largest housebuilders, the CMA has identified concerns that may form the basis of a market investigation reference (MIR) and is today launching a consultation to seek market participants鈥� input with regard to the possibility of an MIR in relation to those concerns. 皇冠体育app consultation closes for responses on 18 September 2023.
6. Working papers will be published later this autumn addressing issues relevant to the housebuilding market study. Working papers will set out the CMA鈥檚 more detailed thinking on whether and how the way the market works in the areas under consideration may be having a negative effect on market outcomes for consumers and options for action to address any problems found.
7. 皇冠体育app CMA鈥檚 2023 to 2024 Annual Plan, published in March, explains that the CMA wants to promote an environment where people can be confident they are getting great choices and fair deals and where competitive, fair dealing businesses can innovate and thrive. It also explains that, over the next 3 years, the CMA will 鈥渃onsistently focus on the areas where consumers spend the most money and time鈥�. This includes focusing on the accommodation sector over the next 12 months through our consumer research project into the private rented sector and through the housebuilding market study.