The Competition and Markets Authority’s investigation into some of the UK’s biggest house builders, started in February last year, has been extended.
The probe began after the CMA published its final report on the housebuilding market in Great Britain – finding that the complex and unpredictable planning system, together with the limitations of speculative private development, is responsible for the persistent under delivery of new homes.
The study also found substantial concerns about estate management charges – with homeowners often facing high and unclear charges for the management of facilities such as roads, drainage, and green spaces. Concerns have been found, too, with the quality of some new housing after the number of owners reporting snagging issues increased over the last 10 years.
The CMA found evidence during the study which indicated some housebuilders may be sharing commercially sensitive information with their competitors, which could be influencing the build-out of sites and the prices of new homes. While the CMA does not consider such sharing of information to be one of the main factors in the persistent under-delivery of homes, the CMA is concerned that it may weaken competition in the market.
The CMA therefore launched an investigation under the Competition Act 1998 into Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey, and Vistry. The CMA has not reached any conclusions at this stage as to whether or not competition law has been infringed.
That probe reduced to seven after the merger between Barratt and Redrow was completed in August 2024.
The CMA said the investigation will continue until at least May, due for additional evidence gathering, after the initial investigation came to an end at the end of last month.
