The CMA launched the investigation last year amid concerns that several leading housebuilders had exchanged competitively sensitive information with a view to “preventing, restricting or distorting” competition.

The seven housebuilders investigated were Barratt Redrow, Bellway, Bloor Homes, Persimmon, Taylor Wimpey, Vistry Group and The Berkeley Group.

These groups have now offered a package of commitments to address the CMA’s concerns, which the regulator will now consult on until 24th July.

As well as the £100m payment towards affordable housing programmes, the housebuilders are committing to working with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.

The housebuilders are also entering an agreement not to share certain types of information with other housebuilders, including the prices that houses have been sold for.

This £100m is the largest such payment the CMA has ever secured in a commitment package.

If accepted, these commitments will become legally binding and mean it is not necessary for the CMA to decide whether or not housebuilders have broken competition law.

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“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,” said Sarah Cardell, CEO at the CMA.
“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.”

Several housebuilders have issued statements following the agreement being reached with all highlighting the voluntary nature of the £100m payment.

Barratt Redrow has stressed this “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 housebuilder added: “Barratt Redrow welcomes the CMA's consultation on the voluntary commitments and will continue to work constructively with the CMA throughout the process.”

Similarly Bellway issued a statement that read: “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.”

Taylor Wimpey also issued a similar statement with Jennie Daly, CEO, adding: “We welcome the CMA’s intention to conclude its investigation by accepting voluntary commitments.

“Closure of the CMA’s investigation will allow us to focus our efforts on delivering much-needed homes across the country.

“We will continue to work constructively with the CMA as they conclude the process.”