Homebuilders investigated over 'sharing information which could influence prices'

Some of Scotland’s biggest housebuilders are being investigated over whether they have been sharing information which could influence house prices in a UK-wide probe.

The Competition and Markets Authority (CMA) claimed that it found evidence during a study which indicated some housebuilders may be sharing commercially sensitive information with their competitors, which could be influencing the build-out of sites and the prices of new homes.

The body has therefore launched an investigation under the Competition Act 1998 into Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey, and Vistry.

The wider study looked at the housebuilding market in Great Britain, and found that the complex and unpredictable planning system, together with the limitations of speculative private development, is responsible for the persistent under delivery of new homes.

The initial investigation into the housebuilders, including information gathering, analysis and review of information gathered, is expected to last until December 2024.

Sarah Cardell, chief executive of the CMA, said: “The CMA has 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.

A spokesperson from Bloor Homes, said: “We have been transparent with the CMA throughout the year-long study and are currently reviewing the findings. We will continue to work with them throughout the course of the investigation.”

A Redrow spokesperson said: “Redrow has fully co-operated with the CMA throughout its market study. We remain focused on the delivery of high-quality and much-needed new homes as part of our work to create thriving communities across England and Wales. We will continue to work with the CMA.”

A Bellway spokesperson said: “We are reviewing the CMA’s report. Bellway has engaged and co-operated fully with the CMA throughout its market study – and will continue to do so.

“Bellway is committed to exceptional customer care. We remain focused on the delivery of high-quality new homes that meet local demand and enhance the communities we build in as we work to increase the supply of UK housing.”

Berkeley declined to comment.

The housebuilders named have been contacted for comment.