Office of Fair Trading completes phase one of housebuilder probe

Investigators at the Office of Fair Trading completed the first part of their probe into the housebuilding market last week as new figures revealed first time buyers are finding it harder than ever to afford a home.

The OFT launched its investigation in June and the first deadline for written evidence passed last week.

An OFT spokeswoman said: "We have to date received over 130 submissions to the consultation but it’s worth noting that the consultation is only one part of the information gathering process. We have not changed our terms of reference but are liaising with stakeholders to refine the focus of the topics to be covered within the parameters of the original terms of reference."

The report, which will be released next summer, will look at construction standards and whether enough homes are being built.

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."

Latest figures from the NHBC’s First Time Buyers Ability to Buy Index hit an all time low during the second quarter of this year.

Chief executive Imtiaz Farookhi said: "The Index reduced dramatically in the second quarter to below the previously lowest level in 1989 and is reflective of the increasing difficulties being experienced by those wishing to buy their first home."

Jill Craig, RICS head of public policy said: " The Government needs to take more action to ensure that house building rises to sufficient levels if it is to make good on its promises to promote an inclusive and sustainable society where the poorest are not priced out of the housing market."