The Competition and Markets Authority (CMA) is investigating several leading UK housebuilders following a year-long investigation into the sector across Wales, England, and Scotland. The regulator’s study uncovered evidence suggesting that information-sharing among companies could influence new home prices and sales rates. Sarah Cardell, chief executive of the CMA, revealed that “potential exchanges of confidential, commercially sensitive information relating to sales prices and sale rates” had been seen. The watchdog has stressed that the sharing of such information is not the primary driver of problems in the housing market, but warned that all parties must comply with competition law.
The CMA’s investigation includes Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey, and Vistry. The regulator has not yet reached conclusions on whether or not competition law has been breached. It has also highlighted concerns regarding the quality of new homes.
The CMA has said that significant intervention is necessary to ensure that sufficient housing is built in order to meet demand. The regulator has also emphasised the complexity of the current planning system, including delays due to a lack of resources at planning departments and complex consultations. The CMA has suggested recommendations to streamline planning to tackle the problem.
Housebuilders listed on the London Stock Exchange initially saw share prices fall in response to the probe. Shares in Persimmon dropped 2.8% to £13.74, narrowly ahead of Taylor Wimpey with a 2.7% dip to 142p. In its manifesto last year, the Conservative Party pledged to simplify the planning system in order to deliver 300,000 homes a year by the mid-2020s. Last year, just under 250,000 homes were built in the UK as a whole
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