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The UK has seen a “persistent under delivery” of new homes, according to the competition watchdog which has launched an investigation into eight major housebuilders.

Too few new homes are being delivered due to a “complex and unpredictable” planning system and the widening gap between what’s being built by private developers and what people need, the Competition and Markets Authority (CMA) said.

Its report into the housebuilding industry also identified “substantial concerns” about estate management charges – with homeowners “often facing” high and unclear charges for the management of roads, drainage and green spaces.

Less than 250,000 new homes were built last year across Britain – well below the 300,000-target for England alone, the CMA said.

Why building targets aren’t being met

Targets have only been met when local authorities build houses, the CMA said, but the majority of building currently comes from the private sector, it added.

“It is notable that housebuilding has only reached the levels that are currently being targeted in periods where significant
supply was provided via local authority building”.

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Along with planning problems, a key reason for this is the system of development where homes are built without knowing in advance who will buy them or for how much, a system known as speculative private development.

The majority of houses (60%) built from 2021 to 2022 came through this system which allows builders to respond to market changes but has led to a gap between what people need and what is being built.

“The evidence shows that private developers produce houses at a rate at which they can be sold without needing to reduce their prices, rather than diversifying the types and numbers of homes they build to meet the needs of different communities (for example providing more affordable housing),” the CMA said of the system.

Quality

Concern about the quality of housing was also identified.

The number of owners reporting issues increased over the last decade, the CMA found, as housebuilders don’t have strong incentives to compete with each other on quality and consumers have unclear routes to have problems solved.

Serious problems, such as collapsing staircases and ceilings, were experienced in a “substantial minority” of new houses.

Investigation into major housebuilders

An investigation into eight housebuilders has been launched as the CMA suspects them of sharing commercially sensitive information, which could be influencing the prices of new homes.

While the issue is not one of the main drivers high house prices and the shortfall in delivery number, the CMA said it is important its tackles anti-competitive behaviour if found.

Developers being investigated include Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey, and Vistry.

The CMA said it has not reached any conclusions at this stage as to whether competition law has been infringed.

Roughly two-fifths of the homes built between 2021 to 2022 were delivered by the largest, national housebuilders, many of whom are the subject of the CMA investigation, while more than 50,000 homes were delivered by thousands of smaller, regional builders.

Growing estate management charges

A “growing trend” of housing estates with privately managed public amenities such as green spaces was found by the CMA.

Of new homes sold by the biggest builders in 2021 to 2022, 80% were subject to estate management charges which, the CMA said are “often high and unclear”.

The average charge was £350, the CMA found, but one-off, unplanned charges for significant repair work can cost thousands of pounds and cause considerable stress to homeowners.

“Many homeowners are unable to switch estate management providers, receive inadequate information upfront, have to deal with shoddy work or unsatisfactory maintenance, and face unclear administration or management charges which can often make up 50% or more of the total bill”, it added.

A Bellway spokesperson said: “Bellway has engaged and co-operated fully with the CMA throughout its market study – and will continue to do so… We remain focused on the delivery of high-quality new homes that meet local demand and enhance the communities we build in as we work to increase the supply of UK housing.”

A spokesperson for the Home Builders Federation said: “We welcome recognition that the planning system is a fundamental barrier to delivery and adds unnecessary delay and cost into the development process, and the need for local authorities to have plans in place and properly resourced planning departments.”

“Housebuilders do not want to be long term mangers of estates and make absolutely no profit from the management companies that are required to be put in place.”

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UK content creators demand formal recognition from the government

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UK content creators demand formal recognition from the government

The UK’s YouTubers, TikTok creators and Instagram influencers have been surveyed on mass for the first time ever, and are demanding formal recognition from the government.

The creator economy in the UK is thought to employ around 45,000 people and contribute over £2bn to the country in one year alone, according to the new research by YouTube and Public First.

But, despite all that value, its workers say they feel underappreciated by the authorities.

Max Klyemenko, famous for his Career Ladder videos, wants the government to take creators like himself more seriously. Pic: Youtube
Image:
Max Klyemenko, famous for his Career Ladder videos, wants the government to take creators like himself more seriously. Pic: Youtube

“If you look at the viewership, our channel is not too different from a big media company,” said Max Klymenko, a content creator with more than 10 million subscribers and half a billion monthly views on average.

“If you look at the relevancy, especially among young audiences, I will say that we are more relevant. That said, we don’t really get the same treatment,” he told Sky News.

Fifty-six per cent of the more than 10,000 creators surveyed said they do not think UK creators have a “voice in shaping government policies” that affect them.

Only 7% think they get enough support to access finance, while just 17% think there is enough training and skills development here in the UK.

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Nearly half think their value is not recognised by the broader creative industry.

The creative industries minister, Sir Chris Bryant, said the government “firmly recognises the integral role that creators play” in the UK’s creative industries and the fact that they help “to drive billions into the economy” and support more than 45,000 jobs.

“We understand more can be done to help creators reach their full potential, which is why we are backing them through our new Creative Industries Sector Plan,” he said.

Ben Woods said the government needs to "broaden its lens" to include creators
Image:
Ben Woods said the government needs to “broaden its lens” to include creators

“The UK has got a fantastic history of supporting the creative industries,” said Ben Woods, a creator economy analyst, Midia Research who was not involved in the report.

“Whether you look at the film side, lots of blockbuster films are being shot here, or television, which is making waves on the global stage.

“But perhaps the government needs to broaden that lens a little bit to look at just what’s going on within the creator economy as well, because it is highly valuable, it’s where younger audiences are spending a lot of their time and [the UK is] really good at it.”

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According to YouTube, formal recognition would mean creators are factored into official economic impact data reporting, are represented on government creative bodies, and receive creator-specific guidance from HMRC on taxes and finances.

For some, financial guidance and clarity would be invaluable; the ‘creator’ job title seems to cause problems when applying for mortgages or bank loans.

Podcaster David Brown owns a recording studio for creators
Image:
Podcaster David Brown owns a recording studio for creators

“It’s really difficult as a freelancer to get things like mortgages and bank accounts and credit and those types of things,” said podcaster David Brown, who owns a recording studio for creators.

“A lot of people make very good money doing it,” he told Sky News.

“They’re very well supported. They have a lot of cash flow, and they are successful at doing that job. It’s just the way society and banking and everything is set up. It makes it really difficult.”

The creative industries minister said he is committed to appointing a creative freelance champion and increasing support from the British Business Bank in order to “help creators thrive and drive even more growth in the sector”.

The government has already pledged to boost the UK’s creative industries, launching a plan to make the UK the number one destination for creative investment and promising an extra £14bn to the sector by 2035.

These influencers want to make sure they are recognised as part of that.

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Santander bank deal could mean TSB name disappears from UK high street

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Santander bank deal could mean TSB name disappears from UK high street

Santander is to buy TSB, becoming the UK’s third biggest bank in the process.

Once completed, the combined bank will have the third-largest number of personal account balances in the UK, and be fourth in terms of mortgage lending, with a total of nearly 28 million customers, Santander said.

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The deal is still subject to approval by regulators and shareholders of TSB’s parent company, Banco Sabadell, but is expected to conclude in the first three months of 2026.

It could mean the TSB brand is no longer visible on the high street, as Santander said it “intends to integrate TSB in the Santander UK group”.

Job losses may also result.

Santander‘s interest in tabling a bid for TSB was first reported by Sky News.

More on Banking

TSB has five million customers, offers business and personal accounts, and is the UK’s tenth largest lender for mortgages and deposits. After cutting jobs and branches last year, it currently employs roughly 5,000 staff and operates 175 branches, the seventh largest network in the UK.

It comes just months after speculation that Santander would leave the UK market, despite denials from the Spanish-owned lender.

File pic: iStock
Image:
File pic: iStock

In recent months, it had rejected takeover attempts from rivals NatWest and Barclays.

Barclays had also bid for TSB.

Banco Sabadell said it was selling TSB “to focus our strategy on Spain”, its chief executive, Cesar Gonzalez-Bueno, said.

Santander has agreed to pay an initial £2.65bn for TSB, with the final price expected to rise to £2.9bn when yet-to-be-announced financial results are factored in.

The price is 1.5 times the value of TSB’s assets.

“This is an excellent deal for customers, combining two strong and complementary banks, creating one of the most substantial banks in the UK and materially enhancing the competitiveness of the industry,” said Mike Regnier, CEO of Santander UK.

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Energy bills: Network charges set to rise as price cap eases

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Energy bills: Network charges set to rise as price cap eases

A major component within household energy bills is set to rise sharply from next year to help pay for efforts to maintain energy security during the transition to green power.

The industry regulator Ofgem’s draft determination on how much it will allow network operators to charge energy suppliers from 1 April 2026 to 31 March 2031 would push up network costs within household bills by £24 a year.

These charges currently account for 22% of the total bill.

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The findings, which will be subject to consultation before a final determination by the end of the year, reflect demands on network operators to make power and gas networks fit for the future amid expansion in renewable and nuclear energy to meet net zero ambitions.

Ofgem says the plans it has given provisional approval for amount to a £24bn investment programme over the five-year term – a four-fold increase on current levels.

A total of 80 major projects includes upgrades to more than 2,700 miles of overhead power lines.

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If rubber stamped as planned, the resulting network cost increases threaten further upwards pressure on bills from next April – a month that has now become synonymous with rising essential bills.

The watchdog revealed its plans as the 22 million British households on the energy price cap benefit from the first decline for a year.

It is coming down from an annual average £1,849 between April and June to £1,720 from July to September.

That’s on the back of easing wholesale costs seen during the spring – before the temporary surge in wholesale gas prices caused by the recent instability in the Middle East.

A new forecast released by industry specialist Cornwall Insight suggested households were on track to see a further, but slight, decline when the cap is adjusted again in October.

At the current level it is 28% lower than at the height of the energy-led cost of living crisis – but 10% higher than the same period last year.

The price cap does not limit total bills because householders still pay for the amount of energy they consume.

Ofgem is continuing to recommend consumers shop around for fixed rate deals in the market as they can offer savings compared with the price cap and shield homes from any price shocks seen within their fixed terms.

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Jonathan Brearley, the regulator’s chief executive, said: ”Britain’s reliance on imported gas has left us at the mercy of volatile international gas prices which during the energy crisis would have caused bills to rise as high as £4,000 for an average household without government support.

“Even today the price cap can move up or down by hundreds of pounds with little we can do about it.

“This record investment will deliver a homegrown energy system that is better for Britain and better for customers. It will ensure the system has greater resilience against shocks from volatile gas prices we don’t control.

“These 80 projects are a long-term insurance policy against threats to Britain’s energy security and the instability of prices. By bringing online dozens of homegrown, renewable generation sites and modernising our energy system to the one we will need in the future we can boost growth and give ourselves more control over prices too.

“Doing nothing is not an option and will cost consumers more – this is critical national infrastructure. The sooner we build the network we need, and invest to strengthen our resilience, the lower the cost for bill payers will be in the future.”

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