The UK Competition and Markets Authority (CMA) has reached a significant agreement with seven major housebuilders, resulting in a £100 million payment aimed at funding affordable housing programs throughout the UK. This payment is the largest ever secured by the CMA as part of a commitments package and is expected to facilitate the construction of hundreds of new homes for low-income households, first-time buyers, and vulnerable individuals.

The investigation was initiated last year due to concerns that the housebuilders—Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry—were engaging in anticompetitive behavior by sharing sensitive information regarding sales, pricing, and buyer incentives. In response to the CMA's findings, the housebuilders have proposed a set of legally binding commitments to prevent such practices in the future.

As part of the commitments, the housebuilders will not only make the £100 million payment but will also collaborate with the Home Builders Federation and Homes for Scotland to create industry-wide guidelines on information sharing. They have agreed to limit the sharing of certain types of information, particularly regarding house sale prices, to ensure compliance with competition laws.

If the CMA accepts these commitments, they will become legally binding, allowing the investigation to conclude without a formal determination of any legal violations. This swift resolution is intended to expedite the benefits of the payment to communities in need of affordable housing.

Sarah Cardell, Chief Executive of the CMA, emphasized the importance of competition in the housing sector, stating that it is crucial for keeping prices low and increasing consumer choice. The CMA's actions serve as a warning to other companies about the consequences of anticompetitive behavior.

The funds from the housebuilders will be allocated to various affordable housing programs across the UK, including direct funding to devolved governments. This initiative aims to support the construction of affordable homes for rent or sale, with registered bodies such as housing associations and local authorities eligible to apply for funding.