Watchdog consults on deal to end investigation into suspected competition law breaches

Seven housebuilders have agreed to pay 拢100m to affordable housing programmes and promised not to share price information with rivals as part of a deal to bring a watchdog鈥檚 investigation into alleged anti-competitive practices to an end.

Since last year, the Competition and Markets Authority (CMA) has been probing alleged breaches of competition law by Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry. The probe was launched following concerns the firms may have exchanged 鈥渃ompetitively sensitive information鈥�

In a statement today, CMA said it will now consult on a proposed deal which includes legally-binding commitments from the housebuilders in return for ending the investigation.

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The CMA has been investigating seven housebuilders

Under the proposed deal, the seven have agreed to make a combined 拢100m payment which will be split between affordable housing programmes across all four UK nations. Funding will be given to devolved governments and to Homes England for its Affordable Homes Programme, which awards development grants to housing associations and councils.

The housebuilders have also agreed to a set of legally binding commitments, including not sharing certain types of information with other housebuilders, including the price homes have been sold for. They will also work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information-sharing.

The housebuilders do not admit any liability or wrongdoing, while the deal means the CMA will not now decide whether competition law has been breached.

Sarah Cardell, chief executive at the CMA, said: 鈥淗ousing is a critical sector for the UK economy and housing costs are a substantial part of people鈥檚 monthly spend, so it鈥檚 essential that competition works well. This keeps prices as low as possible and increases choice.

鈥淎s a result of the CMA鈥檚 investigation, housebuilders are taking clear and comprehensive steps to ensure they comply with the law and don鈥檛 share competitively sensitive information with their rivals.鈥�

Several of the housebuilders involved, including Barratt, Bellway, Taylor Wimpey and Vistry, have today issued statements welcoming the CMA鈥檚 consultation and pledging to work constructively with the watchdog.

The consultation on the proposed deal closes on 24 July.

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