Housebuilders To Pay £100m for Affordable Homes After CMA Probe

July 09, 2025 09:10 AM
Photograph: Andrew Matthews/PA

Seven major housebuilders in the UK have agreed to contribute £100 million to affordable housing initiatives after the Competition and Markets Authority (CMA) uncovered evidence suggesting they may have shared commercially sensitive information that could impact home prices.

The companies involved—Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry—have not admitted to any wrongdoing but have agreed to the payment, which will be distributed across affordable housing projects in all four UK nations.

The CMA launched its investigation last year after finding signs that information-sharing among the firms may have hindered competition. This included details on house prices, viewing numbers, and buyer incentives like upgraded fittings or help with stamp duty.

As part of their agreement, the housebuilders have pledged to stop sharing specific types of data, such as sale prices, unless under narrowly defined conditions.

If accepted, the commitments will become legally binding, allowing the CMA to avoid making a formal ruling on whether competition laws were broken. A consultation on the proposals is open until 24 July.

CMA chief executive Sarah Cardell welcomed the proposals, calling them “clear and comprehensive” steps to protect consumers. She emphasised the importance of fair competition in the housing market, noting that housing is a key part of the UK economy and a major expense for many households.

Cardell added that the CMA’s actions have led to significant reforms among housebuilders, who are now committing to avoid sharing sensitive data with competitors.

The £100 million commitment is the largest the CMA has ever secured through such agreements and is expected to help fund hundreds of new homes for low-income families, first-time buyers, and vulnerable groups.

The investigation was launched in 2024 following a year-long market study that examined the factors contributing to the shortfall in new housing supply.

Labour has committed in its manifesto to delivering 1.5 million new homes in England by the end of the current parliament. Achieving this goal would mean adding 300,000 homes to the housing supply annually—a rate that has never been reached before.

Some ministers believe that this can be accomplished by overhauling the planning system to encourage greater private sector investment in new developments.

Meanwhile, much of the construction sector is still rebounding from the surge in costs during the Covid pandemic, which drove up prices for materials like timber and concrete blocks. Although overall building costs have since stabilised, the expense of raw materials and skilled labour remains elevated.