Sustainable code difficult for small builders - OFT

Small house builder may struggle to reach targets associated with the Code for Sustainable Homes, according to a report released by OFT.

The report, which looked into whether there were anti-competitive practices happening in the house building industry, said the code was a particular concern for smaller house builders who do not have the resources to carry out extensive research and development and so will be reliant on off the shelf solutions.

It added: "If these new technologies are brought forward by large home builders either individually or in clubs pooling their research and development resources there is a real risk that smaller homebuilders will be excluded from the industry."

It recommended: "Government and the Welsh Assembly Government should consider the need to assist small homebuilders and individuals building their own homes so that they can access the necessary technologies to overcome the zero carbon challenge."

The reported added that the development of the Zero Carbon Hub was a crucial step in solving this problem.

Zero Carbon Hub chief executive Neil Jefferson said: "We completely agree with the OFT report's recommendation that small homebuilders and self builders need support to help achieve the various code levels."
 
He added: "The role of the Hub is to provide all those involved in the construction of new homes access to the technology and knowledge to help them meet these challenging 2016 targets."

OFT also said it had concerns that the regulatory burden including the sustainable homes could depress land values to a level where landowners will not sell land for residential developments.

It added the code might also result in more problems with new homes as house builders adapt to new standards and learn about the new technologies.