Following an 11 month investigation into potentially anti-competitive behaviour by developers, the Competition and Markets Authority (CMA) says it wants to continue gathering evidence.

The investigation began back in February 2024 after a major study commissioned by Michael Gove into the housebuilding sector raised concerns at the CMA that a number of the biggest developers may be exchanging commercially sensitive information.

Sharing sales prices

The concerns are allegedly around whether the developers might be sharing information about sales prices, incentives, and rates of sale amongst each other, and that this could influence the build rate of new sites and the prices of new homes.

All the developers involved are household names – Barratt and Redrow (now merged), Bellway, Berkeley, Bloor Homes, Persimmon, Taylor Wimpey and Vistry.

The government body has still to decide whether there is sufficient evidence to begin a formal prosecution and there is no statutory time frame. If evidence is uncovered, however, a ‘statement of objections’ would be issued to all the parties under investigation and they would then have the opportunity to make representations to the CMA.

Serious implications

If any are found guilty, it would have serious implications for the sector, as anyone who bought properties from those developers would be likely to take court action. Both Persimmon and Taylor Wimpey, for example, built over 10,000 homes and Barrat built over 14,000 in 2024, alone.

Companies who are found to have infringed the Competition Act can also be hit with some very hefty penalties, including fines of up to 10% of company turnover.