Eight house-building giants probed over suspicion of collusion
EIGHT major house-builders are being investigated over possible collusion that could be pushing up prices.
The Competition and Markets Authority said yesterday it had found evidence that firms may be sharing ‘ commercially sensitive information’.
The companies could face multi-million-pound fines if they are found to have broken competition law – although the watchdog stressed that it had not yet come to any conclusions.
Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey and Vistry are the companies under investigation.
It came as the CMA issued a wider report highlighting the ‘persistent shortfalls’ in the number of homes being built across England, Scotland and Wales. Fewer than 250,000 homes were built last year – well below the 300,000 target for England alone.
Other issues identified included a complex planning system, shoddy building quality and a growing trend for new home owners to be charged hundreds of pounds a year for the upkeep of amenities, such as parks and roads.
Britain’s housing market could prove a key issue at the general election as millions struggle to get on the housing ladder or trade up to larger properties as their families grow.
CMA chief executive Sarah Cardell said: ‘House building in Britain needs significant intervention so enough good- quality homes are delivered in the places people need them.’ The CMA’s report calls for a series of reforms, including a streamlining of the planning system and better protection for consumers.
Ms Cardell said the suspected sharing of information was ‘not one of the main drivers of the problems we’ve highlighted in our report’. But she added: ‘ It is important we tackle anti-competitive behaviour if we find it.’
House- builders ‘ may find it mutually beneficial’ to share such information as it helps them to understand what their rivals are doing, the CMA said.
That could influence the prices at which they bid for land as well as pricing levels. ‘We are concerned that any sharing by house-builders of non-public information of this kind may have the object or effect of preventing, restricting or distorting competition,’ the watchdog added. The CMA has the power to fine companies 10 per cent of their sales if it finds there has been a breach of competition law.
The Home Builders Federation, which represents the industry, said of the CMA investigation: ‘We cannot comment on the specifics of an ongoing investigation and we are committed to assisting the CMA throughout the process.’
Barratt, Bellway, Bloor Homes, Persimmon, Redrow and Taylor Wimpey all said they had ‘co-operated fully’ with the CMA’s study and would continue to do so.
Berkeley and Vistry declined to comment.