Seven house builders offer £100m affordable housing payment to close CMA probe

The developers will also work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information-sharing. 

The house builders do not admit any liability or wrongdoing for the conduct subject to investigation.

If this deal is accepted, the commitments will become legally binding. This means it is not necessary for the CMA to decide whether the house builders broke competition law, allowing its investigation to conclude.

Organisations found to have infringed the Competition Act could be hit with hefty penalties, including up to 10% of company turnover.

Sarah Cardell, chief executive of 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, house builders 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 house builders we investigated have agreed to pay £100m towards affordable homes programmes, which will help communities up and down the country.”

The cash would be split to target affordable housing around the UK.

The CMA will now consult until 24 July 2025 on the proposed commitments before deciding whether to accept them. Any payments are expected to be made within three months once agreed.

Many of the house builders updated the stock market with their commitment to the payment proposal following the CMA’s announcement.

Bellway said: “Under the terms of the offered commitments, Bellway will contribute £13.5m to a total payment of £100m to be paid by the seven UK house builders 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.

“Bellway welcomes the CMA’s consultation on the voluntary commitments and will continue to work constructively with the CMA throughout the process.”

Persimmon said: “[The firm] has worked constructively with the CMA throughout its inquiry. Alongside the other house builders under investigation, it has voluntarily offered commitments in response to the potential concerns investigated by the CMA.

“Persimmon’s decision to offer voluntary commitments does not constitute an admission of any wrongdoing, nor does it imply that Persimmon agrees with the concerns expressed by the CMA in the investigation.

“The commitments include an ex-gratia financial contribution from all seven house builders to the government’s Affordable Homes Programme totalling £100m. Persimmon’s proportionate contribution is £15.24m.”

Vistry said: “The voluntary commitments include a commitment by Vistry and the six other UK house builders to contribute £100m in aggregate to His Majesty’s government, which shall be disbursed to government programmes which fund and support the construction of affordable homes in England, Scotland, Wales and Northern Ireland.

“Vistry will contribute £12.8m as part of this commitment. Vistry’s offer of the voluntary commitments does not constitute an admission of any wrongdoing by it, nor may it be construed as implying that Vistry agrees with any concerns expressed by the CMA.”

Barratt Redrow said: “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 £100m 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 £29m.

“Barratt Redrow welcomes the CMA’s consultation on the voluntary commitments and will continue to work constructively with the CMA throughout the process.”

Taylor Wimpey said: “The CMA has today announced its intention to close its investigation by accepting voluntary commitments from all parties involved in the investigation, and has invited representations from interested third parties. Taylor Wimpey’s share of the combined financial contribution will be a payment of £15.84m.

“The CMA has not made any infringement finding against Taylor Wimpey or any of the house builders subject to investigation, and the voluntary commitments offered do not constitute an admission of any wrongdoing.”

Bloor Homes and Berkeley Group have been contacted for response.