Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry have offered to pay a total of £100m towards affordable housing programmes to wind up a Competition and Markets Authority(CMA) probe
The CMA launched the probe in February 2024 after a report on the state on UK housebuilding, which revealed potential competition violations between seven of the biggest housebuilding businesses in the country.
Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry were accused of sharing details such as pricing, number of property viewings and incentives offered to buyers, which they have all denied.
The £100m payment will be split across affordable housing programmes in all member countries of the UK. Barratt Redrow, which combined Barratt and Redrow over the course of the investigation, will contribute £29m.
The CMA will consult on the offer until 24th July 2025
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, house builders 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 house builders we investigated have agreed to pay £100m towards affordable homes programmes, which will help communities up and down the country.”
The seven housebuilders investigated in the CMA probe have agreed to:
- to not share certain types of information with other house-builders, including the prices houses have been sold for (except in limited circumstances)
- to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing
Any payments will be made within three months once agreed.
If accepted, the commitments “will become legally binding and mean that it is not necessary for the CMA to decide whether the house builders broke competition law – allowing the investigation to conclude swiftly and benefits to be felt quickly.”
The CMA added: “The Parties do not admit any liability or wrongdoing for the conduct subject to investigation.”
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