UK housebuilders offer to pay out £100m to end competition watchdog’s investigation

The Competition and Markets Authority (CMA) launched an investigation last year amid concerns that the housebuilders had exchanged information about sales including pricing, number of property viewings, and incentives offered to buyers such as upgraded kitchens or stamp duty contributions.

The seven housebuilders are: Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry.

Now those companies have offered to make a combined £100 million payment to affordable housing programmes across all four UK nations. They have also committed to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.

And they have agreed not to share certain types of information with other housebuilders, including the prices houses have been sold for, except in limited circumstances.

If the CMA accepts those commitments, they become legally binding, which means the CMA will not need to decide whether the housebuilders broke competition law.

Sarah Cardell, chief executive at the CMA, said: “Housing is a critical sector for the UK economy and housing costs are a substantial part of people’s monthly spend, so it’s essential that competition works well. This keeps prices as low as possible and increases choice.

“As a result of the CMA’s investigation, housebuilders are taking clear and comprehensive steps to ensure they comply with the law and don’t share competitively sensitive information with their rivals.

“Alongside these measures, the housebuilders we investigated have agreed to pay £100 million towards affordable homes programmes, which will help communities up and down the country.”

The CMA will now consult on the proposed commitments before deciding whether to accept them. Any payments will be made within three months once agreed.