SCOTLAND is set to benefit from a £100 million payout from seven leading house building firms after they were found sharing commercially sensitive details that affect the price of homes.
Housing developers, Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, have not admitted to any wrongdoing but have agreed to make the payment, which will be split between affordable housing programmes across Scotland, England, Wales and Northern Ireland.
The Competition and Markets Authority (CMA) launched an investigation last year following concerns that the seven top housebuilders in the UK were exchanging details about sales, including pricing, number of property viewings and incentives offered to buyers such as upgraded kitchens.
The CMA concluded its investigation this week and found evidence of information being shared between the firms that “prevented and distorted” competition.
The seven house building firms told CMA they will not share certain types of information with other housebuilders, which if the watchdog accepts the commitments, will become legally binding and mean it will not have to decide whether the housebuilders broke competition law.
They will also work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing.
Sarah Cardell, the chief executive of the CMA, praised the proposed measures as “clear and comprehensive” steps as she said it is “essential” for competition laws to work well.
“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,” she said.
“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.”
The £100m payment is the largest the CMA has secured through commitments from companies under investigation.
