Saturday, June 23, 2007
Action time! OFT says supply not the problem!
The Office of Fair Trading has launched an investigation into the United Kingdom’s £20 billion housebuilding industry amid concerns over both the quality and time taken to build the country’s housing stock. The investigation will examine any evidence of cartel-like behaviour that may restrict the supply of new homes and fuel house-price rises, although OFT inspectors insist that they are approaching the inquiry with “no assumptions”. Research from the Royal Town Planning Institute shows that the nine largest residential developers have enough land with planning permission to build almost 225,000 homes. That is more than double the number of houses they build annually.