CMA probe of major housing developers leads to 100 million affordable housing contributions commitment and a further consultation

[edit] The probe and results in brief

The Competition and Markets Authority (CMA) launched an investigation into the anti-competitive behaviour of seven major UK housebuilders; Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry. It followed concerns that they shared commercially sensitive information such as sales prices, property viewings, and buyer incentives. These practices raised serious competition law concerns.

As a result and in response, the seven largest housebuilder developers have proposed a set of legally binding commitments, which the CMA has opened a consultation on its intention to accept (see Consultation on proposed commitments in the investigation into suspected anti-competitive conduct by housebuilders closing on 24 July 2025)

[edit] What is the CMA and what commitments have been made?

The CMA is the Competition and Markets Authority; a non-ministerial Government department that works to promote competition for the benefit of consumers, both within and outside the UK. The CMA’s work is overseen by a Board and led by the Chief Executive and senior team. Decisions in some investigations are made by independent members of a CMA panel. As well as imposing fines on companies breaking competition law, the CMA uses its power to seek the disqualification of directors.

The commitments made by the developers include:

• A £100 million payment, the largest ever secured under such circumstances, to fund affordable housing initiatives across England, Scotland, Wales, and Northern Ireland.
• A pledge to work with industry bodies, including the Home Builders Federation and Homes for Scotland, to create formal guidance on information sharing.
• An agreement not to exchange key sales-related information with competitors, except in strictly limited situations.

The CMA has not reached a view as to whether there is sufficient evidence of an infringement or infringements of competition law for it to issue a statement of objections to any party under investigation. Not all cases result in the CMA issuing a statement of objections, but the CMA will consider any representations it receives before any decision is taken as to whether competition law has been infringed.

If the commitments are accepted, after the consultation the CMA will not pursue a formal ruling on whether competition law was broken. Instead, the case will close with enforceable undertakings and immediate sector benefits. The outcome reinforces the CMA’s stance that healthy competition in the housing market is vital to keep prices fair, boost home quality, and support critical infrastructure and affordable housing delivery.

[edit] Initial comments on the findings

The CMA said: “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. If accepted, the commitments will become legally binding and mean that it is not necessary for the CMA to decide whether the housebuilders broke competition law — allowing the investigation to conclude swiftly and benefits to be felt quickly. 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"

Sarah Cardell, Chief Executive at the CMA, added: "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."

Barratt Redrow formerly responded saying it "has engaged proactively and constructively with the CMA throughout its investigation, including by voluntarily offering binding commitments alongside the other Parties in response to the potential concerns investigated by the CMA, and with a view to resolving expeditiously the investigation. The offer of voluntary commitments does not constitute an admission of any wrongdoing by Barratt Redrow and nothing in the commitments may be construed as implying that Barratt Redrow agrees with any concerns expressed by the CMA in the investigation. The Parties' proposed commitments include making a collective payment of £100 million to His Majesty's Government to be disbursed to the affordable homes programmes in England, Scotland, Wales and Northern Ireland. Barratt Redrow's share of the payment is expected to be £29 million."

Bellway responded by saying “Under the terms of the offered commitments, Bellway will contribute £13.5 million to a total payment of £100 million to be paid by the seven UK housebuilders in aggregate to government programmes that fund and support the construction of affordable housing across the UK. Bellway’s offer of commitments does not constitute an admission of any wrongdoing, and the CMA has made no determination as to the existence of any infringement of competition law.” Whilst Jennie Daly, chief executive of Taylor Wimpey said: “We welcome the CMA’s intention to conclude its investigation by accepting voluntary commitments. Closure of the CMA’s investigation will allow us to focus our efforts on delivering much needed homes across the country. We will continue to work constructively with the CMA as they conclude the process.”

The Home Builders Federation and Homes for Scotland have indicated that they are committed to developing and publishing guidance on information exchange for the wider housebuilding industry.

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