Seven housebuilders suspected of sharing price information formally sign up to several commitments, including £100m affordable housing payment
The Competition and Markets Authority (CMA) has published the full details of the binding commitments seven housebuilders have signed up to in return for the watchdog dropping a probe into suspected exchanges of competitively sensitive information.
In February 2024, the watchdog began investigating alleged breaches of competition law by Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry.
The publication of its formal acceptance of the binding commitments brings the case to an official end, with no decision being made as to whether the Competition Act 1998 has been infringed.
The housebuilders have agreed to six main commitments, including a combined £100m contribution to affordable housing programmes across the UK as announced in the summer.
They have pledged not to share sensitive information with other housebuilders, such as the prices houses have been sold for, except for in limited circumstances.
They will also work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.
The CMA has the power to issue fines and apply for court orders enforcing the commitments if they are breached.
The housebuilders will be bound to the agreement for five years.
The commitments
1. The information exchange commitment: to not directly share, with any other parties and/or with other housebuilders, certain types of information regarding any newly built residential house or flat in Great Britain eg. pricing information and buyers incentive information
2. Non-circumvention: to not directly or indirectly circumvent or attempt to circumvent the Commitments through any means
3. The industry-wide guidance commitment: to use their best efforts to engage with and support the HBF and HfS to develop and publish UK competition law guidance for the housebuilding sector in relation to information exchange
4. The affordable homes payment: to make a payment of £100 million to the UK government within three months from the effective date, which the UK government shall disburse to the affordable homes programmes in England, Scotland, Wales and Northern Ireland
5. The enhanced compliance commitment: to provide mandatory annual competition law compliance training to all relevant employees
6. Compliance, monitoring and reporting: commit to several compliance and reporting measures to monitor the implementation of and compliance with the commitments eg. the appointment of a commitments compliance officer, provision of an annual compliance statement and acceptance of the CMA’s power to request any information and documents it considers necessary
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