The Competition and Markets Authority (CMA) is consulting on voluntary commitments, including a £100 million payment to the affordable homes programme, offered by seven UK housebuilders following an extensive investigation into potential breaches of competition law.
Launched in February 2024, the investigation, which had been extended multiple times, focused on whether the housebuilders had exchanged sensitive pricing, sales, and incentive information, possibly distorting competition in local housing markets.
Originally eight, until Barratt Developments and Redrow merged to form Barratt Redrow, the seven housebuilders have made a series of voluntary commitments in response, including a £100 million payment.
Each contribution varies, with the housebuilders involved:
- Barratt Redrow – £29 million
- Bellway – £13.5 million
- The Berkeley Group
- Bloor Homes
- Persimmon – £15.24 million
- Taylor Wimpey – £15.84 million
- Vistry Group – £12.8 million
The Berkeley Group and Bloor Homes share the remaining £13.62 million.
Although no company has been found to have breached competition law, the CMA has proposed accepting the payment – the largest ever secured through a commitments package – to support the government’s affordable homes programme, along with additional voluntary commitments to resolve the matter.
These include a legally-binding pledge to stop sharing competitively sensitive information with competitors, as well as collaboration with the Home Builders Federation and Homes for Scotland to develop industry guidance on information exchange.
If approved, the payment itself would be made within three months and the investigation would conclude quickly, avoiding a lengthy legal process.
Companies involved have emphasised that these commitments do not imply an admission of wrongdoing, with each maintaining their commitment to fair and transparent business practices.
The CMA will make its final decision on whether to accept the proposed commitments following a consultation period, which closes on 24 July.
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