An investigation by a House of Commons select committee into the housebuilding sector has called for the dominance of the large housebuilders to end to fix the UK’s broken housing market.
The Communities and Local Government committee said it had found that the eight largest firms were building over half of all new homes in the country making the industry over reliant on an “alarmingly small number of commercial actors”.
The report added that while no evidence of land banking by the housebuilders had been found there was little incentive for them to build any quicker. In addition, the committee said that land was in such high demand in some areas that developers were paying over the odds which in turn meant they were having to increase the density of homes on schemes and reduce levels of affordable housing to recover their investment.
Developers were also building more slowly so as not to saturate the market and lower house prices, the report said, and recommended the case be examined for public intervention.