Seven builders to pay £100m to housing programmes following CMA probe

(Sharecast News) - Seven housebuilders have agreed to collectively pay £100m to affordable housing programmes across the UK following a investigation by the competition regulator into pricing and buyer incentives. London-listed Barratt Redrow, Bellway, Berkeley Group, Persimmon, Taylor Wimpey and Vistry, along with private outfit Bloor Homes, have offered a package of commitments to address the Competition and Markets Authority's concerns, which includes a payment to fund hundreds of new homes - helping low-income households, first-time buyers and vulnerable people.

As of 0915

BST, Barratt Redrow, Taylor Wimpey, Persimmon, Bellway and Vistry had released statements confirming their commitment. Barratt Redrow will contribute £29m, Taylor Wimpey's share of the total is £15.8m, Persimmon has put up £15.2m, Bellway will contribute £13.5m and Vistry has committed £12.8m.

All four builders stressed that the offer of voluntary commitments "does not constitute an admission of any wrongdoing" by the companies.

As part of the proposed commitments, that were offered following direct consultations with the CMA, the housebuilders also agreed not to share certain types of information with other housebuilders, including sales prices. They also agreed to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.

Barratt Redrow said in a statement that "nothing in the commitments may be construed as implying that [it] agrees with any concerns expressed by the CMA in the investigation".

"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," said the CMA's chief executive Sarah Cardell.

"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."