Affordable housing set to benefit from £100m following CMA probe

Latest News Thu, Jul 10, 2025 5:53 AM

The Competition and Markets Authority (CMA) launched an investigation last year following concerns that seven housing developers – Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry – exchanged details about sales including pricing, number of property viewings and incentives offered to buyers such as upgraded kitchens or stamp duty contributions.

The housebuilders have offered a package of commitments to address the CMA’s concerns which it will now consult on until 24 July 2025.

Under the proposed commitments, the 7 housebuilders will:

  • Make a combined £100 million payment – the largest secured through commitments from companies under investigation – which will be split between affordable housing programmes across all 4 nations.
  • Work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.
  • Agree not to share certain types of information with other housebuilders, including the prices houses have been sold for, except in limited circumstances.

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.

This payment will directly support the delivery of affordable housing across the UK, helping to fund hundreds of new homes for those who need them such as low-income households, first-time buyers and vulnerable people.

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, 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 £100 million 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. For more information, visit the investigation page.

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