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| Version 7 | Version 8 |
|---|---|
| OFT probes housebuilding sector | OFT probes housebuilding sector |
| (40 minutes later) | |
| The Office of Fair Trading has announced it is launching an investigation into the housebuilding industry in the UK. | The Office of Fair Trading has announced it is launching an investigation into the housebuilding industry in the UK. |
| It will examine how regulation and competition might work more effectively, and will examine customer satisfaction and planning issues. | It will examine how regulation and competition might work more effectively, and will examine customer satisfaction and planning issues. |
| The UK housebuilding sector is worth £20bn a year, and the OFT study is expected to be completed by mid-2008. | The UK housebuilding sector is worth £20bn a year, and the OFT study is expected to be completed by mid-2008. |
| Critics complain that too few houses are being built, pushing up prices. | Critics complain that too few houses are being built, pushing up prices. |
| Industry consulted | Industry consulted |
| The investigation is being undertaken in the wake of the Barker Review of Housing Supply 2004, which recommended that there should be a relaxation of planning rules to allow the building of more affordable homes. | The investigation is being undertaken in the wake of the Barker Review of Housing Supply 2004, which recommended that there should be a relaxation of planning rules to allow the building of more affordable homes. |
| Since then the OFT has been monitoring the housebuilding market and says it is concerned that it may not be working well for consumers. | Since then the OFT has been monitoring the housebuilding market and says it is concerned that it may not be working well for consumers. |
| It says it will be working with the industry as part of its review, which could result in a market investigation reference to the Competition Commission. | It says it will be working with the industry as part of its review, which could result in a market investigation reference to the Competition Commission. |
| Unresponsive housing supply hinders labour mobility, constrains economic growth, and harms consumers John Fingleton, OFT chief executive Send us your comments class="" href="/1/hi/business/6229848.stm">Q&A: Housebuilder probe | |
| Other possible outcomes include giving the market a clean bill of health, publishing information to help consumers, or enforcement action against companies suspected of breaching consumer or competition law. | Other possible outcomes include giving the market a clean bill of health, publishing information to help consumers, or enforcement action against companies suspected of breaching consumer or competition law. |
| Part of the reasons for the review is the fact that the construction industry had been asked to draw up a code of conduct and that had not been developed. | Part of the reasons for the review is the fact that the construction industry had been asked to draw up a code of conduct and that had not been developed. |
| The study will not look at the overall question of where development should occur or the environmental impact of new homes. | The study will not look at the overall question of where development should occur or the environmental impact of new homes. |
| The OFT chief executive John Fingleton said: "This is the first in-depth examination of competition and consumer issues in new housebuilding. | The OFT chief executive John Fingleton said: "This is the first in-depth examination of competition and consumer issues in new housebuilding. |
| "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." | "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." |
| 'Speed up' | 'Speed up' |
| Housebuilders have complained that a complicated planning process is one of the main reasons of undersupply and have urged the government to relax the planning system. | Housebuilders have complained that a complicated planning process is one of the main reasons of undersupply and have urged the government to relax the planning system. |
| The number of homes built each year has declined in most of the last 15 years, while the number of households has continued to grow. | The number of homes built each year has declined in most of the last 15 years, while the number of households has continued to grow. |
| "Persimmon is very keen to speed up the planning process and anything that would help that would be welcomed," a spokesman for the UK's largest housebuilder by market value said. | "Persimmon is very keen to speed up the planning process and anything that would help that would be welcomed," a spokesman for the UK's largest housebuilder by market value said. |