Housebuilders are set to deliver a boost of £100m to affordable housing projects across the UK.
The sum was agreed following an investigation carried out by the Competition and Markets Authority (CMA) last year, during which seven housebuilders were probed about concerns such as the exchange of sales details and buyer incentives.
As part of the package of commitments proposed by the housebuilders, the £100m payment was offered to help provide hundreds of affordable homes, supporting ‘low-income households, first-time buyers and vulnerable people’.
In addition to the combined payment, the housebuilders have pledged to ‘develop industry-wide guidance on information sharing’ alongside Homes for Scotland and the Home Builders Federation, whilst also agreeing to limit information shared with other housebuilders.
According to Sarah Cardell, Chief Executive at the CMA, the payment will ‘help communities up and down the country’.
Ms Cardell said: ‘Housing is a critical sector for the UK economy and housing costs are a substantial part of people’s monthly spend, so it’s essential that competition works well. This keeps prices as low as possible and increases choice.
‘As a result of the CMA’s investigation, housebuilders are taking clear and comprehensive steps to ensure they comply with the law and don’t share competitively sensitive information with their rivals.’
The consultation on the commitment proposals will take place on 24 July, enabling the investigation to ‘conclude swiftly’ if the package is accepted.
