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RNS Number : 3320Q Competition and Markets Authority 09 July 2025
Affordable housing set to benefit from £100 million following CMA probe
Consultation underway on payment by housebuilders and changes to how they
handle sensitive information to address CMA's concerns.
· Seven housebuilders have agreed to pay a total of £100 million to
affordable housing programmes across all 4 nations following a CMA
investigation
· This is the largest payment secured by the CMA as part of a
commitments package, which could fund hundreds of new homes - helping
low-income households, first-time buyers and vulnerable people
· The housebuilders have also agreed to legally binding commitments
which will prevent anticompetitive behaviour and promote industry-wide
compliance
The Competition and Markets Authority (CMA) launched an investigation last
year following concerns that 7 housing developers - Barratt Redrow, Bellway,
Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry - exchanged
details about sales including pricing, number of property viewings and
incentives offered to buyers such as upgraded kitchens or stamp duty
contributions.
The housebuilders have offered a package of commitments to address the CMA's
concerns which it will now consult on until 24 July 2025. Under the proposed
commitments, the 7 housebuilders will:
· Make a combined £100 million payment - the largest secured through
commitments from companies under investigation - which will be split between
affordable housing programmes across all 4 nations.
· Work with the Home Builders Federation and Homes for Scotland to
develop industry-wide guidance on information sharing.
· Agree not to share certain types of information with other
housebuilders, including the prices houses have been sold for, except in
limited circumstances.
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 - allowing the investigation to conclude swiftly and benefits
to be felt quickly.
This payment will directly support the delivery of affordable housing across
the UK, helping to fund hundreds of new homes for those who need them such as
low-income households, first-time buyers and vulnerable people.
It is important that competition works well in the housebuilding market to
keep prices fair, improve the quality of homes and support the delivery of
essential infrastructure. 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.
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.
"Alongside these measures, the housebuilders we investigated have agreed to
pay £100 million towards affordable homes programmes, which will help
communities up and down the country."
The CMA will now consult on
(https://www.gov.uk/government/consultations/proposed-commitments-in-the-investigation-into-suspected-anti-competitive-conduct-by-housebuilders)
the proposed commitments before deciding whether to accept them. Any payments
will be made within 3 months once agreed. For more information, visit the
investigation page
(https://www.gov.uk/cma-cases/investigation-into-suspected-anti-competitive-conduct-by-housebuilders)
.
Notes to editors:
1. The CMA's investigation was launched following concerns identified
during its housebuilding market study
(https://www.gov.uk/cma-cases/housebuilding-market-study) .
2. Two of the housebuilders involved in the CMA's investigation - Barratt
and Redrow - merged to form Barratt Redrow in August 2024. The original
investigation involving 8 housebuilders was subsequently reduced to 7 to
reflect this merger.
3. The Parties do not admit any liability or wrongdoing for the conduct
subject to investigation. Formal acceptance of the commitments would result
in the CMA not continuing its investigation and not proceeding to a decision
on whether the CA98 has been infringed. Any decision by the CMA to accept
binding commitments will not include any statement as to whether or not the
housebuilders' conduct has infringed the CA98.
4. The UK government will allocate the payment to affordable homes
programmes across all 4 nations, including giving funding directly to the
devolved governments. For example, some funding will be given to the
Affordable Homes Programme in England which is administered by Homes England.
Registered bodies, such as housing associations, charities and local
authorities, can bid for funds from the programmes to support the capital
costs of building affordable homes for rent or sale.
5. The Home Builders Federation and Homes for Scotland were not under
investigation. The housebuilders have agreed to work with these industry
associations to develop industry-wide guidance to help ensure that all
businesses are clear on the types of information they cannot share with their
competitors.
6. The CMA has previously secured commitments, including payments, from
pharmaceutical companies Vifor Pharma
(https://www.gov.uk/government/news/nhs-set-to-benefit-from-23-million-following-cma-pharma-probe)
and Aspen
(https://www.gov.uk/government/news/cma-levies-fines-of-23m-and-secures-8m-for-nhs-in-pharma-probe)
. The £100 million from housebuilders is the highest payment the CMA has
secured through commitments.
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