Competition & Markets Authority
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CMA proposes amending old NHBC undertakings
The CMA proposes amending old NHBC undertakings in order to protect growing competition in the market for new home warranties.
The National House Building Council (NHBC) provides structural warranties for over 1.6 million homes in the UK and it covers most new homes. In March 2017 the Competition and Markets Authority (CMA) began reviewing historic undertakings, agreed with NHBC in 1995 following an investigation by the Monopolies and Mergers Commission.
This had found that some NHBC rules for its registered builders made it difficult for companies looking to offer alternative warranties to enter the market.
The CMA now proposes amending – but not entirely removing – the original undertakings. This follows its review finding that competition from other warranty providers has grown, with house builders buying some or all of their new home warranties from other providers but that NHBC still has a very high market share and its competitors remain relatively small in scale.
The proposed new undertakings will ensure that builders who are registered with NHBC can continue to buy warranties from other providers, but will remove the requirements for NHBC to oversee other warranties. The full terms of the proposed change to the undertakings are set out in the CMA’s provisional decision document.
Anyone wishing to comment on the provisional decision should do so by 20 July 2017 by emailing structural.warranties@cma.gsi.gov.uk or writing to:
Structural Warranties Review
Competition and Markets Authority
Victoria House
Southampton Row
London
WC1B 4AD
