Housebuilders to Pay £100m to Head Off Price Sharing Investigation

SEVEN HOUSEBUILDERS have agreed to pay a total of £100 million to UK affordable housing programmes to head off a Competition and Markets Authority (CMA) investigation into possible price sharing.

The CMA launched an investigation last year following concerns that seven housing developers exchanged details about sales.

The information thought to have been shared included not just pricing, but also the number of property viewings and incentives offered to buyers, such as upgraded kitchens or stamp duty contributions.

The housebuilders are:

• Barratt Redrow plc
• Bellway plc
• The Berkeley Group plc
• Bloor Homes Limited
• Persimmon plc
• Taylor Wimpey plc
• Vistry Group plc

– including all the group companies of each business.

The house building businesses do not admit any liability or wrongdoing for the conduct investigated.

Housebuilders to Pay £100m

The housebuilders have offered a package of commitments to address the CMA’s concerns which it will now consult on until 24 July 2025. The seven housebuilders will:

• Make a combined £100 million payment – the largest secured through commitments from companies under investigation – which will be split between affordable housing programmes across all four UK nations.
• Work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.
• Agree not to share certain types of information with other housebuilders, including the prices houses have been sold for, except in limited circumstances.

If accepted, the commitments will become legally binding and mean that it is not necessary for the CMA to decide whether the housebuilders broke competition law.

Affordable Housing

The £100 million payment will directly support the delivery of affordable housing across the UK, helping to fund hundreds of new homes for those who need them such as low-income households, first-time buyers and vulnerable people.

The CMA says it is important that competition works well in the housebuilding market to keep prices fair, improve the quality of homes and support the delivery of essential infrastructure. It adds, “This outcome sends a clear message to other companies that the CMA will take action where it has concerns that the law is being broken.”

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.

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