Seven of the UK’s biggest housebuilders have agreed to pay £100 million to support affordable housing projects, following an investigation by the Competition and Markets Authority (CMA) into suspected anticompetitive behaviour.
The firms – Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry – were being investigated for allegedly sharing sensitive information with each other, such as house prices, property viewings, and buyer incentives like free upgrades or stamp duty contributions.
Although the companies haven’t admitted any wrongdoing, they’ve committed to changing their practices and will fund housing schemes across all four UK nations as part of the resolution.
What Did the CMA Find?
The CMA opened the investigation in 2024 after a broader study into the housing market uncovered signs of information sharing that could be harming competition. Regulators said they found evidence that developers were exchanging details that may have influenced how homes were priced and marketed – potentially pushing up prices or reducing buyer choice.
As part of their proposed commitments, the housebuilders have now agreed not to share certain types of commercial information, like actual sale prices or marketing tactics, except in tightly defined situations.
If the CMA accepts these commitments, they’ll become legally binding – meaning the regulator won’t need to rule on whether the law was actually broken.
Regulator Welcomes Industry Shift
Sarah Cardell, Chief Executive of the CMA, welcomed the commitments, calling them “clear and comprehensive.”
“Housing is a critical sector for the UK economy, and housing costs are a major part of people’s monthly budgets,” Cardell said. “It’s essential that competition works well – that’s what keeps prices in check and gives buyers more choice. These steps will help make sure that developers compete fairly, rather than coordinating behind the scenes.”
She added that the £100 million – the largest sum ever secured by the CMA through commitments – is expected to fund hundreds of new homes for people on low incomes, first-time buyers, and others in need of support.
What Happens Next?
The CMA is now consulting on the commitments, with feedback open until 24 July. If there’s strong support, the commitments will be formally adopted, and the case will be closed without further legal action.
This case is part of a wider push by the CMA to tackle long-standing problems in the housing sector. The original market study pointed to deep-rooted issues behind the UK’s chronic undersupply of homes, including planning barriers, slow build-out rates, and limited competition in some areas.
