OFT to investigate planning practices

Planning regulations are among the aspects of the house building industry that are set to be investigated by the Office of Fair Trading (OFT), it has been revealed.

The OFT has said that it will examine whether land earmarked for development is being "effectively brought through" to a position where it can be granted planning approval, as well as how well land with planning permission is being utilised.

The investigation will also encompass the wider economic implications of the shortage of supply, as well as considering what can be done to boost customer satisfaction.

'This is the first in-depth examination of competition and consumer issues in new housebuilding. This is a hugely important market for the economy because of its substantial economic impact and because unresponsive housing supply hinders labour mobility, constrains economic growth, and harms consumers," commented John Fingleton, chief executive at the OFT.

Last month the government unveiled planning reforms designed to make it easier for small scale home build projects to go ahead without planning permission.


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