OFT launches investigation into UK housebuilding market

The Office of Fair Trading (OFT) has launched a probe into the £20bn per year UK housebuilding industry.

The OFT said the study would look into competition and consumer concerns, focusing on two key areas:

• delivery of housing - whether land suitable for development is being effectively brought through to the planning approval stage and whether land with planning permission is being converted effectively into homes;
• customer satisfaction - homebuyers' satisfaction with the properties available.

OFT chief executive John Fingleton said: “This is a hugely important market for the economy because of its substantial economic impact and because unresponsive housing supply hinders labour mobility, constrains economic growth, and harms consumers.”

The study will report in summer 2008.