Seven housebuilders have agreed to pay a total of £100m to affordable housing programmes following a Competition and Markets Authority data investigation.
The move comes after the CMA launched an investigation last year following concerns that seven developers exchanged details about sales including pricing, number of property viewings and incentives offered to buyers, such as upgraded kitchens, or stamp duty contributions.
The seven housebuilders are Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry.
The competition watchdog says the housebuilders have offered a package of commitments to address its concerns, which it will now consult on until 24 July.
The CMA adds: “This is the largest payment secured by the CMA as part of a commitments package, which could fund hundreds of new homes – helping low-income households, first-time buyers and vulnerable people.
“The housebuilders have also agreed to legally binding commitments, which will prevent anticompetitive behaviour and promote industry-wide compliance.”
Under the proposals, the developers have agreed to:
Agree not to share certain types of information with other housebuilders, including the prices houses have been sold for, except in limited circumstances
“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.”
Competition and Markets Authority chief executive Sarah Cardell adds: “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.”
Last week, Deputy Prime Minister Angela Rayner set out plans to build around 300,000 affordable homes over the next decade with the £39bn of funding she secured from last month’s spending review.
