Seven of the UK’s largest housebuilders have agreed to pay a combined £100 million towards affordable housing schemes across the UK, following a Competition and Markets Authority (CMA) investigation into the alleged exchange of commercially sensitive sales data.
The payment – the largest ever secured by the CMA through a legally binding commitments package – will be allocated by the UK government to fund affordable housing programmes in England, Scotland, Wales and Northern Ireland.
The move is expected to support the delivery of hundreds of homes for low-income families, first-time buyers, and vulnerable households.
The CMA launched its investigation last year after concerns surfaced during its broader study of the UK housebuilding market. It uncovered evidence that several major developers had been sharing confidential information – including sales prices, buyer demand, and incentives offered to purchasers – in a manner that could dampen competition.
NOT ADMITTED TO WRONGDOING
The companies involved – Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry – have not admitted to any wrongdoing.
However, to resolve the CMA’s concerns without a formal breach of the Competition Act 1998, they have offered a set of commitments which are now subject to public consultation until 24 July.
These include a pledge not to exchange certain categories of sensitive commercial information and a commitment to work with industry bodies – the Home Builders Federation and Homes for Scotland – to develop clearer sector-wide guidance on acceptable practices.
GREATER COMPLIANCE
Sarah Cardell, chief executive of the CMA, called the resolution “a major step forward” for competition in the housing market.
She says: “Buying a home is one of the biggest financial commitments people make, so it’s vital that the market operates fairly.
“This package not only ensures greater compliance in the future, but it will also directly benefit communities by helping to deliver more affordable homes.”
If the commitments are accepted, the investigation will be formally closed, and the £100 million will be transferred to the government within three months – a resolution the CMA argues will accelerate tangible outcomes while avoiding a protracted legal process.
CLEAR MESSAGE
The CMA clarified that neither the Home Builders Federation nor Homes for Scotland were under investigation. The case originally involved eight firms, but the number was reduced following the merger of Barratt and Redrow in 2024.
Although the case stops short of a formal infringement finding, the authority said it hoped the settlement would send a “clear message” across the UK economy that improper sharing of commercial data will not be tolerated.
The financial redress surpasses previous CMA undertakings, including those secured in the pharmaceutical sector, and underscores the regulator’s increasing willingness to enforce competition rules in key sectors affecting household finances.
