Seven housebuilders will pay a combined £100million to affordable housing programmes after a CMA investigation into the sharing of information.
The CMA looked into Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry over concerns that they were exchanging details about sales, which include pricing, property viewings and buyer incentives.
The developers, while not admitting any wrongdoing, have offered a package of commitments which the CMA will consult on until 24 July 2025. The commitments will see the housebuilders make a £100million payment, as well as working with the Home Builders Federation and Homes for Scotland to create industry guidance on the sharing of information. The developers will also agree not to share certain information between housebuilders such as sale prices.
The CMA says that the commitments, once agreed, will become legally binding.
The group of developers stated that the CMA’s investigation had not found any existence of copyright law infringement, and that the £100million payment does not suggest that they agree with the CMA’s concerns.
A statement by Taylor Wimpey said: “The CMA has not made any infringement finding against Taylor Wimpey or any of the housebuilders subject to investigation, and the voluntary commitments offered do not constitute an admission of any wrongdoing. Taylor Wimpey welcomes the CMA’s intention to conclude its investigation by accepting voluntary commitments. We will continue to work constructively with the CMA as they conclude the process.”
Barratt Redrow will contribute £29million of the voluntary payment, with Taylor Wimpey adding £15.84million, £15.24million from Persimmon, £13.5million from Bellway and £12.8million from Vistry.
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, housebuilders are taking clear and comprehensive steps to ensure they comply with the law and don’t share competitively sensitive information with their rivals.”
The CMA will now deliberate over the proposals from the group of housebuilders, with any subsequent payments to be made within three months.
