Seven housebuilders have agreed to pay £100m towards affordable homes to avoid a regulator’s decision on whether they broke competition law.
The Competition and Markets Authority (CMA) last year began investigating whether housebuilders had been swapping information, such as pricing and the incentives offered to buyers such as upgraded kitchens or stamp duty contributions.
The The companies investigated by the CMA are Barratt and Redrow – who have since merged to become Barratt Redrow – as well as Bellway, Berkeley, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry.
The seven firms, which have also agreed not to share commercially sensitive information such as how much houses have sold for “except in limited circumstances”, said they welcomed the CMA’s decision, adding that the £100m payment is not an admission of wrongdoing.
The CMA declined to comment on whether the firms had shared commercially sensitive information such as sale prices with each other, potentially breaking the law.
The CMA said that the housebuilders “do not admit any liability or wrongdoing for the conduct subject to investigation”.
Sarah Cardell, chief executive at the CMA, said: “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 £100m towards affordable homes programmes, which will help communities up and down the country.”
The CMA will now consult on the proposed commitments before deciding whether to accept them. Any payments will be made within 3 months once agreed.
“This keeps prices as low as possible and increases choice” – what a ridiculous statement when there is conditional selling going on (i.e. we won’t sell you the property unless you use our preferred broker or solicitor). Prices have been going up because of all of the meddling from government and yet government don’t bat an eye lid when all of these properties are sold with worthless warranties (because developers know most of the public don’t have money to sue them or they use NDAs to keep people quiet). What a world we live in.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register