25
Sep
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.
