Britain’s biggest housebuilders have agreed to pay £100m towards affordable homes to avoid a regulator’s decision on whether they broke competition law.
The seven firms have also agreed not to share commercially sensitive information such as how much houses have sold for “except in limited circumstances”.
The Competition and Markets Authority (CMA) last year began investigating whether housebuilders had been swapping information, such as pricing and the incentives offered to buyers such as upgraded kitchens or stamp duty contributions.
The majority of the housebuilders said they welcomed the CMA’s decision, adding that the £100m payment is not an admission of wrongdoing.
The CMA has launched a public consultation on its intention to accept the firms’ offer.
If it does, the regulator said “that it is not necessary for the CMA to decide whether the housebuilders broke competition law”.
The companies investigated by the CMA are Barratt and Redrow – who have since merged to become Barratt Redrow – as well as Bellway, Berkeley, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry.
The watchdog was concerned that if the companies were sharing “competitively sensitive information” it could prevent, restrict or distort competition in the housing market.
The CMA declined to comment on whether the firms had shared commercially sensitive information such as sale prices with each other, potentially breaking the law.
“We don’t have to reach a conclusion in this case that there has been an infringement,” CMA chief executive Sarah Cardell told the BBC Radio 4 Today programme.
“The reason for that is that our focus is making sure this market is working competitively going forward.”
The CMA said that the housebuilders “do not admit any liability or wrongdoing for the conduct subject to investigation”.
Asked whether some individuals or housing authorities may have overpaid because of building firms sharing data, Ms Cardell told the BBC: “That is part of the reason why we have secured this commitment to a payment of £100m from the companies, and that will go to the people who need it the most.
“It will bring hundreds more affordable homes to the UK market immediately which, by the way, is a much better resolution than a long and complex investigation.”
Barratt Redrow, Bellway, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry all welcomed the CMA’s announcement.
Berkeley has been contacted for comment.
The government has said that it wants regulators to be more pro-growth.
In January, the CMA’s chair Marcus Bokkerink was ousted and replaced on an interim basis by Doug Gurr, former boss of Amazon UK.
Ms Cardell said: “We are committed to tackling anti-competitive behaviour, and that is exactly what we are doing today because we have moved swiftly and effectively to resolve this case with absolute clarity.
“The housebuilders are in no doubt what they need to do to comply with the law.”
As part of the offer, the firms have agreed to support the creation of information exchange guidance for the industry and introduce enhanced in-house compliance measures and training programmes.
The Home Builders Federation and Homes for Scotland said they are committed to “developing and publishing guidance on information exchange for the wider housebuilding industry”.