The Competition & Markets Authority (CMA) launched an investigation last year following concerns of collusion among seven housing developers – Barratt Redrow, Bellway, Berkeley, Bloor Homes, Persimmon, Taylor Wimpey and Vistry.
It was alleged that they exchanged details about sales including pricing, number of property viewings and incentives offered to buyers such as upgraded kitchens or stamp duty contributions.
While denying any admission of wrongdoing, the seven companies have offered a package of commitments to address the CMA's concerns.
They will make a combined £100m payment that will be split between affordable housing programmes across all four nations of the UK. Barratt Redrow's share of the payment is expected to be £29m, representing both Barratt and Redrow, which were both initially subject to suspicion but have combined since the investigation began.
The seven have agreed not to share certain types of information with other house-builders, including the prices houses have been sold for, except in limited circumstances. They have also undertaken to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing. They
The CMA will now consult on the offer until 24th July 2025. If accepted, the commitments will become legally binding and mean that it is not necessary for the CMA to decide whether the house-builders broke competition law and the investigation will be dropped. Any payments will be made within three months once agreed.
CMA chief executive Sarah Cardell 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."
Several of the house-builders issued statements in response to the effect that their offer of commitments did not constitute an admission of any wrongdoing, nor does it imply that they agree with the concerns expressed by the CMA in the investigation.
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