Some of the UK’s biggest housebuilders have just agreed to hand over £100 million. Not to their customers. Not to people potentially overcharged for their homes. But to the government, to avoid a legal ruling over whether they broke competition law.
What’s the story?
Seven major firms, including household names like Barratt Redrow, Persimmon, and Taylor Wimpey, were under investigation by the Competition and Markets Authority (CMA) for allegedly sharing pricing information with each other.
That includes things like what homes sold for, and the incentives offered to sweeten the deal (think upgraded kitchens or help with stamp duty).
Sharing this kind of information between competitors can harm consumers by reducing competition and potentially inflating prices.
Rather than wait for the CMA to decide whether they actually broke the law, the housebuilders have agreed to a settlement. That includes the £100 million payment and a promise to stop sharing data in future. But crucially, the CMA won’t rule on whether they actually did anything wrong.
No admission. No decision. No compensation.
Despite the scale of the payment, the firms aren’t admitting any wrongdoing. But as CMA boss Sarah Cardell told the BBC, the settlement is meant to “bring hundreds more affordable homes to the UK market immediately”.
This kind of resolution might be quicker than a full investigation, but it also leaves some big questions hanging.
If companies were sharing sensitive information, were ordinary buyers overcharged? Did local authorities and housing providers pay more than they should? And should individuals be entitled to compensation?
What happens next?
Right now, the CMA is running a public consultation before formally accepting the settlement. So there’s still a chance this isn’t the final word.
But here’s what we know: some of the biggest names in UK housebuilding have paid a hefty sum to avoid a legal finding. That in itself could be a sign that something wasn’t quite right.
The firms being investigated by the CMA were:
- Barratt and Redrow (now Barratt Redrow)
- Bellway
- Berkeley
- Bloor Homes
- Persimmon
- Taylor Wimpey
- Vistry.
If a legal challenge arises from this, for example, if it turns out people did overpay, we’ll be ready to help.
Want to be kept in the loop?
We don’t know yet if a claim will go ahead. But if it does, we’ll make sure you’re the first to know.
Register your interest now and we’ll keep you updated.
