The UK government has accepted proposals from the competition watchdog to improve the quality of homes being built.

In February, the Competition and Markets Authority (CMA) said the housebuilding sector needed “significant intervention” and raised concerns about the quality of some new housing, following a year-long investigation.

It proposed that the government should simplify what housebuilders often said was a complex planning system, in order to alleviate the chronic housing shortage that is placing upward pressure on house prices.

Housing minister Matthew Pennycook said the CMA was right to highlight the areas for improvement, and that the government would work to address the regulator’s 11 recommendations.

“We will empower homeowners to challenge developers over poor quality new homes and bad service,” Pennycook said.

“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.”

Labour plans to build 1.5 million homes over the next five years, with an aim to deliver 370,000 new houses across the UK.

Following the government’s response to the Competition and Markets Authority report into the housebuilding market, Nigel Cates, chief Ombudsman for the New Homes Ombudsman Service, commented: “We warmly welcome the government’s commitment to require all housebuilders to join the New Homes Ombudsman and abide by a single quality code. The announcement will ensure all those purchasing new homes will enjoy the same level of protection and recourse to an Ombudsman service no matter who their developer might be.

“We look forward to working with the UK and devolved governments to implement the plans as swiftly as possible.”

The New Homes Quality Board (the NHQB) has also welcomed the government’s response to the Competition and Markets Authority Housebuilding Market Study.

Rob Brighouse, chair of the New Homes Quality Board, said: “We welcome the government’s commitment to having a single mandatory consumer code for all housebuilders and activating the New Homes Ombudsman Service for all buyers of new homes.

“This will mean that there is one single framework [the Code] for all developers to improve the standards of quality and customer service provided to all new homebuyers. We believe that this decision will help to create a level playing field for all new homebuyers; offering the same route for redress and protections offered through the New Homes Ombudsman.

“We will be engaging with government and all stakeholders over the coming weeks and months to help put this into effect.”