"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"
- Sarah Cardell - Competition and Markets Authority
Seven major housebuilders have agreed to pay a combined £100 million towards affordable housing programmes across the UK following a Competition and Markets Authority (CMA) investigation into potentially anticompetitive practices. The payment, which is the largest ever secured through a commitments package by the CMA, could help fund the delivery of hundreds of homes for low-income households, first-time buyers and vulnerable individuals.
The investigation began in 2023 after concerns were raised that Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry had exchanged commercially sensitive information. This included data on sales prices, viewing numbers and buyer incentives such as upgraded kitchens and stamp duty contributions.
To address these concerns, the housebuilders have offered a package of commitments that are now subject to public consultation until 24 July 2025. If accepted, the commitments will become legally binding and bring the investigation to a close without the CMA having to determine whether competition law was breached.
Under the proposed commitments, the seven companies will:
Make a joint £100 million contribution to affordable housing programmes across England, Wales, Scotland and Northern Ireland
Collaborate with the Home Builders Federation and Homes for Scotland to develop guidance on appropriate information-sharing practices
Refrain from sharing certain categories of information with competitors, such as house sale prices, except in clearly defined circumstances
The CMA stated that this outcome is designed to prevent future instances of information sharing that could undermine competition. The authority also expects the commitments to deliver faster benefits to the housing market by enabling the investigation to conclude swiftly.
“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,” the CMA noted in a statement.
“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," explained Sarah Cardell, chief executive at the CMA. “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 said the case sends a strong signal to other companies that it will intervene where there are concerns that competition rules are not being followed. It also reiterated the importance of fair competition in housebuilding to ensure affordability, housing quality and the development of necessary infrastructure.
