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Eight of the largest housebuilders in the country are to be investigated for price fixing, it has been announced.
The Competition and Markets Authority (CMA) is to look at whether the developers are guilty of illegally sharing sensitive information.
Builder breaches
The eight housebuilders whose activities are being investigated for breaches of the Competition Act 1998 are: Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey and Vistry Group.
The CMA says it has not yet reached a view about whether there is sufficient evidence of an infringement of competition law.
It also published its final report on the housebuilding market, which finds that the “complex and unpredictable planning system, together with the limitations of speculative private development”, are responsible for the failure to build enough homes.
It is important we tackle anti-competitive behaviour if we find it.”
Sarah Cardell, CEO of the CMA (main picture), says: “The CMA has also today opened a new investigation into the suspected sharing of commercially sensitive information by housebuilders which could be influencing the build-out of sites and the prices of new homes.
“While this issue is not one of the main drivers of the problems we’ve highlighted in our report, it is important we tackle anti-competitive behaviour if we find it.”
Estate charges
The report also found concerns about estate management charges – with homeowners “often facing high and unclear charges for the management of facilities such as roads, drainage, and green spaces”.
“Concerns have been found, too, with the quality of some new housing after the number of owners reporting snagging issues increased over the last 10 years,” the CMS says.
Marc Vlessing, CEO, Pocket Living
This report says what we all knew.”
Marc Vlessing, CEO at first-time buyer house developer Pocket Living, says: “This report says what we all knew.
“That the housebuilding sector isn’t working and isn’t delivering the new homes we need.”
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