UK builders to pay £100 million to housing programmes after competition probe

[LONDON] Seven housing developers in the UK have agreed to pay a total of £100 million (S$174 million) to affordable housing programmes in Britain following a competition watchdog investigation into potentially anti-competitive behaviour.

Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry have all agreed to a package of commitments to address the Competition and Markets Authority’s (CMA) concerns, the regulator said in a statement.

The CMA launched an investigation last year following concerns the builders exchanged competitively sensitive details about sales including pricing, number of property viewings and incentives offered to buyers.

As well as the £100 million payment – split between affordable housing programmes – the housebuilders have agreed to refrain from sharing information except in limited circumstances. The CMA said it will now consult on the proposals.

“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,” said CMA chief executive Sarah Cardell.

Vistry, Barratt Redrow, Persimmon and Bellway said in separate statements that they had engaged proactively with the CMA, and their payment offers did not constitute admissions of wrongdoing.

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Berkeley Group, Taylor Wimpey and Bloor Homes were not immediately available for comment. REUTERS