Watchdog probe to net £100m from listed housebuilders for affordable schemes
A probe by the UK’s competition watchdog is likely to result in a collective £100m package from seven housebuilders for affordable housing schemes.
The Competition and Markets Authority (CMA) probe, which looked into the anti-competitive practices of seven housing developers – Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry – was launched in 2023 following a market study on housebuilding.
The CMA was concerned the seven developers had breached anti-competition law by exchanging details about sales. These included information on pricing, property viewings and incentives offered to buyers such as upgraded kitchens or stamp duty contributions.
“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 watchdog said.
The money is not a fine but rather a “package of commitments”, which will be used to address the CMA’s competition concerns. The developers have not admitted to market manipulation.
The watchdog has previously accepted commitments from pharmaceutical companies Vifor Pharma and Aspen, although this payment would be the largest secured to date.
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.
Payments will ‘directly support’ affordable housing
The funds will be used to fund “hundreds” of new affordable homes across England, Scotland, Wales and Northern Ireland.
The package will “help communities up and down the country”, Sarah Cardell, chief executive at the CMA, said.
Cardell added that housebuilders are now “taking clear and comprehensive steps to ensure they comply with the law and don’t share competitively sensitive information with their rivals”.
Developers will also work with the Home Builders Federation and Homes for Scotland “to develop industry-wide guidance on information sharing”.
The CMA has now opened a consultation into the commitments, which is open until July 24.