Following an 11-month investigation into potential anti-competitive conduct by developers, the Competition and Markets Authority (CMA) said it wanted to continue gathering evidence.
The inquiry comes after a major inquiry into the housebuilding sector commissioned by Michael Gove raised concerns in the CMA that many of the major developers may be exchanging commercially sensitive information. It started in February 2024. 
Sharing sales price
Developers are reportedly sharing information about sales prices, incentives and sales rates with each other, which could affect the construction rate of new sites and the price of new homes. There are concerns that there may be.
The participating developers are all household names, including Barratt and Redrow (now merged), Bellway, Berkeley, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry.
Government agencies still need to determine whether there is enough evidence to begin formal prosecution, and there is no statutory deadline. However, if evidence comes to light, all parties under investigation will be issued with an 'objection', after which the CMA will be given an opportunity to express their views.
significant impact
If anyone is found guilty, it would have serious repercussions for the industry, as anyone who bought property from those developers would likely be sued. Persimmon and Taylor Wimpey, for example, built more than 10,000 homes in 2024 alone, and Barratt alone built more than 14,000 homes.
Companies found to have breached competition laws can also face very severe penalties, including fines of up to 10% of their turnover.
