Significant reform of planning systems
Unsurprisingly, the planning system was identified as a key driver of housing under-delivery, and the CMA pointed to a lack of predictability, the length, cost and complexity of the process, and insufficient clarity and strength of targets and incentives to meet housing needs as major issues.
One of the UK Government’s first actions in office was to launch a consultation on updating the National Planning Policy Framework (NPPF) and reintroducing compulsory local plans. MHCLG is currently considering the responses and aims to publish a new NPPF before the end of 2024.
Setting standards for quality and service
Key recommendations made by the CMA and accepted by the UK Government are the introduction of a single mandatory consumer code and a statutory New Homes Ombudsman Scheme which should cover England, Scotland, and Wales.
A voluntary Ombudsman scheme is already in place, covering around 55% of new build homes, and the UK Government states that they are working with the devolved governments to bring forward secondary legislation that will make registration compulsory.
Private management of amenities
The model of public amenities on housing estates was identified as a growing problem. The CMA found significant issues where consumers were not properly informed about the arrangement details, charged unreasonable fees, and received poor service.
MHCLG accepts that change is required but says that further work is needed. They will consult on the best solutions to stop the injustice of ‘fleecehold’ estates, identify which amenities should be adopted by local authorities, and what new consumer protections are needed.
The Leasehold and Freehold Reform Act contains measures that will strengthen protections for residential freeholders living under private management arrangements, including increasing the amount of information that homeowners are entitled to receive to understand what they are paying for, and introducing a right to challenge unreasonable estate management charges at the First-tier Tribunal (England) or Leasehold Valuation Tribunal (Wales). Secondary legislation is needed to implement these measures, and the UK Government states that it will consult on the details.
