Seven major UK housebuilders have agreed to pay a combined £100 million towards affordable housing initiatives across the UK, following an investigation by the Competition and Markets

Authority (CMA). This represents the largest financial commitment ever secured by the CMA through such an agreement.

The payment, which will be distributed among affordable housing programmes in England, Scotland, Wales, and Northern Ireland, could support the construction of hundreds of new homes. These homes will benefit low-income families, first-time buyers, and vulnerable individuals.

The developers involved – Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry – were under investigation for potentially sharing sensitive information, such as house prices, property viewings, and incentives like upgraded kitchens or stamp duty contributions.

To address the CMA’s concerns, the housebuilders have proposed a package of legally binding commitments, which are now open for public consultation until 24 July 2025. If accepted, the commitments would bring the investigation to a close without a formal ruling on whether competition law was breached.

Under the proposed commitments, the housebuilders will:

- Pay a total of £100 million to support affordable housing across the UK.

- Collaborate with the Home Builders Federation and Homes for Scotland to create industry-wide guidance on responsible information sharing.

- Agree not to exchange certain sensitive commercial information with competitors, such as sales prices, except under specific circumstances.

Sarah Cardell, Chief Executive of the CMA, emphasized the importance of fair competition in the housing sector:

“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”.

If the commitments are approved, payments will be made within three months. This outcome not only avoids lengthy legal proceedings but also allows quicker delivery of benefits to those in need of affordable homes.