The Competition and Markets Authority (CMA) has published progress updates on its separate ongoing reports on the housebuilding and private rented sectors (PRS), designed to improve conditions in the housing sector to ensure it supports businesses, tenants and the economy.

In the update to its leasehold investigation in the PRS market, the CMA found a number of had been made by stakeholders, which the authority said suggests that a “significant minority” are not complying with consumer protection law.

In response, the CMA said it would update its guidance for lettings professionals to help agents better understand their obligations and will also continue to investigate into a further five areas: zero deposit schemes, sham licences, guarantee clauses, retirement housing fees and activity that could constitute unlawful discrimination.

Sarah Cardell, chief executive of the CMA, explained: “For private renters, we’re taking action to provide updated guidance for lettings agents so that both tenants and landlords are really clear about their own rights and responsibilities.

“We’ve also identified areas of concern relating to zero deposit schemes, sham licences, onerous guarantee clauses and possible unlawful discrimination. These warrant further investigation and we stand ready to take enforcement action if needed.”

The CMA has also taken feedback from stakeholders across the housebuilding sector, which includes volume developers, small to medium-sized (SME) housebuilders, councils, development administrations and campaign groups.

Following this feedback, the CMA said it will now look into five key areas in greater detail as the study continues. These comprise estate management charges, use of land banks, planning rules, competition between builders and the barriers for new housebuilding businesses entering the market.

Cardell commented: “The CMA alone can’t resolve the problems in the UK housing market. But we have a role to play and will do our part to help ensure the private rental and housebuilding markets work better for people and businesses.

“In housebuilding, we’ll press on with our investigation of the five areas that are the focus of our market study so that we can get to the bottom of any potential competition concerns. Once complete, we will consider what actions the CMA can take to tackle any concerns identified or whether there are more effective ways to deal with those concerns such as through recommendations to government for legislative change.”