Seven major UK housebuilders have agreed to pay a combined £100 million to affordable housing programs to settle an investigation by the Competition and Markets Authority (CMA). The investigation focused on potential anti-competitive behavior, specifically the sharing of commercially sensitive information between developers. The developers, including Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry, will also make commitments to prevent such behavior in the future.
The £100 million payment will be distributed across affordable housing initiatives across the UK. The CMA’s investigation was launched in response to concerns that the developers might have been sharing information about sales, including pricing and incentives offered to buyers. The developers have agreed to legally binding commitments to prevent future anti-competitive practices, including refraining from sharing certain types of information with other housebuilders, except in limited circumstances.
While the developers are making this payment, it’s important to note that they are not admitting liability or wrongdoing for the conduct under investigation. The CMA has stated that its focus is on ensuring the market functions competitively going forward. The proposed commitments from the developers are currently subject to a public consultation, which will end on July 24.
