The Competition and Markets Authority (CMA) has accepted binding commitments from seven major UK housebuilders, bringing an end to an investigation into suspected collusion in the housing market.
The companies – Barratt Redrow, Bellway, Berkeley, Bloor, Persimmon, Taylor Wimpey and Vistry – have collectively agreed to pay £100m to support affordable housing programmes across the UK and to implement strict compliance measures to prevent future breaches.
The CMA launched a major probe in February 2024 amid concerns that the companies had been exchanging competitively sensitive information between January 2022 and February 2024.
Barratt and Redrow were subject to the investigation individually when the probe began, but the companies merged in August 2024 to form Barratt Redrow.
The UK competition watchdog found evidence suggesting that the firms had regularly shared data on actual sale prices, buyer incentives, and reservation rates for new homes – information that could reduce competition and distort the housing market.
While the CMA did not make a formal finding of wrongdoing, it concluded that the commitments offered by the companies were sufficient to address its concerns.
‘Strong signal to housebuilding businesses’
Under the commitments, the companies are prohibited from sharing non-public sales and marketing information with one another and must appoint compliance officers to oversee adherence to the new rules.
They will also deliver annual competition law training to relevant staff and conduct regular internal audits.
In addition, the companies will work with the Home Builders Federation and Homes for Scotland to publish industry-wide guidance clarifying how information can be shared lawfully.
The CMA received nearly 300 consultation responses before finalising its decision, some of which questioned whether the £100m payment was sufficient.
In response, the CMA said the payment “sends a strong signal to businesses within the housebuilding sector and more widely that the CMA takes potential infringements of competition law extremely seriously”.
The commitments will remain in place for five years, after which the CMA may review or renew them if necessary. Failure to comply could lead to financial penalties or a renewed investigation.
