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LONDON - Seven major UK housebuilders have agreed to pay a combined £100 million toward affordable housing programs following a Competition and Markets Authority (CMA) investigation into potential anticompetitive practices.
The payment, which would be the largest ever secured by the CMA through commitments, could fund hundreds of new homes for low-income households, first-time buyers, and vulnerable people across the UK, according to a statement released Wednesday.
Barratt Redrow (LON:RDW), Bellway (LON:BWY), Berkeley Group (OTC:BKGFY), Bloor Homes, Persimmon (LON:PSN), Taylor Wimpey (LON:TW), and Vistry were investigated after concerns emerged that they exchanged competitively sensitive information including pricing details, property viewing numbers, and buyer incentives.
Under the proposed commitments, which are subject to consultation until July 24, the developers would make the payment within three months of final agreement. The funds would be distributed to affordable housing programs across England, Scotland, Wales, and Northern Ireland.
The housebuilders have also agreed to work with industry associations to develop guidance on information sharing and commit to not sharing certain types of information with competitors, such as house sale prices, except in limited circumstances.
"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," said Sarah Cardell, Chief Executive at the CMA.
If accepted, the commitments would become legally binding, allowing the investigation to conclude without the CMA making a final determination on whether competition law was broken.
The housebuilders do not admit any liability or wrongdoing for the conduct under investigation, according to the press release statement.
The CMA launched its investigation following concerns identified during a broader housebuilding market study. The original probe involved eight companies but was reduced to seven after Barratt and Redrow merged in August 2024.
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