Seven developers offer to pay combined £100m towards affordable housing but make no admissions of liability amid competition investigation

The housebuilders have offered to pay a combined £100m to help support affordable housing programme and have also agreed to legally binding commitments which will prevent anticompetitive behaviour and promote industry-wide compliance, the CMA said.

The commitments package comes after the CMA last year launched an investigation into the developers - Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry - amid concerns about the firms exchanging details about sales.

The information that was allegedly exchanged concerned pricing, the number of property viewings and incentives offered to buyers such as upgraded kitchens or stamp duty contributions.

The seven firms have not admitted any liability or wrongdoing for the conduct subject to investigation. 

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The £100m payment – the largest secured through commitments from companies under CMA investigation – will be split between affordable housing programmes across all four nations.

In addition, the firms have committed to working with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.

They have also committed not to share certain types of information with other housebuilders, including the prices houses have been sold for, except in limited circumstances.

The CMA will consult on the proposed commitments until 24 July before deciding whether to accept them.

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, according to the watchdog.

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

In individual statements on the CMA’s decision, Taylor Wimpey, Persimmon, Barratt Redrow, Bellway, and Bloor Homes welcomed the consultation and emphasised that the offers of commitments did not constitute an admission of any wrongdoing.

A spokesperson for Taylor Wimpey said the developer would “continue to work constructively with the CMA as they conclude the process”.

Persimmon noted that it had worked constructively with the CMA throughout its inquiry, adding that the CMA had not made any finding that Persimmon plc and its group companies had infringed UK competition law.

A spokesperson for Barratt Redrow meanwhile welcomed the CMA’s consultation, but added: “Nothing in the commitments may be construed as implying that Barratt Redrow agrees with any concerns expressed by the CMA in the investigation.”

Responding to the announcement, a spokesperson for Bellway reported that the developer would contribute £13.5m to the total payment of £100m.

Bellway also stated that the CMA had made no determination as to the existence of any infringement of competition law and that its offer of commitments did not constitute any admission of wrongdoing.

A representative from Bloor Homes said it welcomed the CMA proposing to accept the commitments package. "The CMA has done so without making any findings that Bloor Homes and its group companies have infringed UK competition law.

"Bloor Homes has worked proactively with the CMA throughout its enquiry, volunteering to offer commitments in response to the suspected concerns alongside the other housebuilders included in the CMA’s investigation.

"Bloor Homes’ decision to offer voluntary commitments does not constitute an admission of any wrongdoing, nor does it imply that Bloor Homes agrees with the concerns detailed by the CMA in the investigation."

Berkeley Group made no comment on the CMA’s decision.

Vistry has been approached for comment.

Adam Carey