25 Sep

OFT report welcomed as boost to building industry

OFT report welcomed as boost to building industry

The Office of Fair Trading has said that the building industry is not anti-competitive and is not acting to artificially inflate house prices.

In a report on the sector, the body gave a largely positive verdict, something that has been welcomed by industry associations as good news for those buying houses.

The Home Builders Federation (HBF) executive chairman Stewart Baseley noted the finding that 90 per cent of new home buyers were happy with their properties, commenting: "The report should also give potential buyers of new homes real confidence in the product they are purchasing."

Another conclusion of the report that was welcomed was that allegations of land banking - where developers hoard land to inflate prices through restricting the supply of new homes - are unfounded.

The HBF welcomed the refutation of this "myth", while the director of external affairs at the Federation of Master Builders Brian Berry said he was pleased this "old chestnut" had been disproved.

In what could be further good news for new home buyers, the OFT said concerns about issues such as faults in new properties and delays in moving in will be addressed through the establishment of a new code of practice for developers.

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