OFT clears housebuilders of house pricing allegations

The Office of Fair Trading (OFT) has cleared major housebuilders of allegations they use their dominance to inflate house prices.

An investigation into the finances of housebuilders found no evidence of anti-competitive measures or land banking to halt developments or prevent competition.

But it did find that some firms will struggle to implement the new technologies that will help them meet higher levels of the Code for Sustainable Homes.

The report suggests that government needs to help the industry develop the technology needed to meet zero carbon building targets.

Recommendations also include the establishment of a code of conduct within the industry to improve standards.

Home Builders Federation executive chairman Stewart Baseley said: “Establishing a self-regulated code of conduct will help us do that, and it is a credit to the industry that the OFT agreed this is the best way forward.

“After months of probing, the OFT’s report is a real boost for the industry. It is a credit to homebuilders that following such an in-depth examination they have received such a clean bill of health.”