The government has committed to helping consumers “challenge developers over poor quality new homes and bad service” in its response to a damning study on housebuilders.

The Competition Markets Authority said the new homes sector needed “significant intervention” from government to correct failures across the planning system and private development in February.

Its year-long report made 11 recommendations and found that “the complex and unpredictable planning system, together with the limitations of speculative private development, is responsible for the persistent under delivery of new homes”.

The body also raised questions “about estate management charges – with homeowners often facing high and unclear charges for the management of facilities such as roads, drainage, and green spaces.  

The regulator said these issues led to “persistent shortfalls” in the number of homes built across England, Scotland, and Wales, with less than 250,000 built last year across the UK – “well below the 300,000 target for England alone”. 

It called for a new consumer code for housebuilders and a new homes ombudsman to allow homeowners to challenge developers for quality issues they face in their properties. 

The government pointed out that it has pledged to build 1.5 million homes over the next five years, compares to around 1 million houses over the last five years.

Its rent reform bill, which will end ‘no fault’ evictions, began its second reading in parliament earlier this month, while a leasehold reform bill, which pledges to revamp the rights of leaseholders and the owners of new build homes was part of the King’s Speech in July.

Housing and planning minister Matthew Pennycook (pictured) says: “The Competition Markets Authority was right to highlight areas for improvement in the housebuilding market.

“That is why we will empower homeowners to challenge developers over poor quality new homes and bad service, and we will consider the best way to address the injustice of ‘fleecehold’ private estates to bring unfair costs to an end.

“Alongside this, our updated National Planning Policy Framework and the reinstatement of mandatory housing targets for councils will ensure communities have the homes and necessary infrastructure to thrive.”

Competition Markets Authority chief executive Sarah Cardell adds: “Housing is an essential area for consumers and driving economic growth, so we will assist government as they take forward our solutions, alongside progressing our wider housing work.”