Seven housebuilders have agreed to pay a total of £100m to affordable housing programmes following a probe by the Competition and Markets Authority.
The CMA last year began investigating whether the builders had been exchanging commercial information, such as pricing and incentives.
The seven are Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry
The authority says the firms’ offer of £100m will mean “that it is not necessary for the CMA to decide whether the housebuilders broke competition law”.
This is the largest payment secured by the CMA as part of a commitments package, which it claims could fund hundreds of new homes.
The housebuilders have also agreed to legally binding commitments which will prevent anticompetitive behaviour and promote industry-wide compliance.
A CMA statement says: “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.
“It is important that competition works well in the housebuilding market to keep prices fair, improve the quality of homes and support the delivery of essential infrastructure. This outcome sends a clear message to other companies that the CMA will take action where it has concerns that the law is being broken.”
And the authority’s chief executive, Sarah Cardell, adds: “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.
“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.”
