Competition watchdog examines potential competition law infringement

  • U.K. competition regulator investigates housebuilders for sharing sensitive information
  • Investigation includes Barratt Developments, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey, and Vistry
  • Competition and Markets Authority concerned about potential weakening of competition
  • Speculative private development responsible for underdelivery of homes
  • Planning systems causing delays in construction

The U.K.’s competition regulator, the Competition and Markets Authority (CMA), has launched an investigation into eight housebuilders over allegations of sharing commercially sensitive information with their competitors. The companies under investigation include Barratt Developments, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey, and Vistry. The CMA has expressed concerns about the potential weakening of competition in the market due to this information sharing. While the CMA has not reached any conclusions yet, it believes that this practice may contribute to the persistent underdelivery of homes. The CMA’s investigation follows a final report on the sector, which highlighted the role of speculative private development in the underdelivery of homes. These types of developments, where builders construct homes without knowing in advance who will buy them or for how much, accounted for around 60% of all houses built in 2021 to 2022. The report also identified planning systems in England, Scotland, and Wales as a factor causing delays in construction. The CMA recommended that governments enhance consumer protections, that councils adopt amenities on new housing estates, and that a new homes ombudsman be established to improve market outcomes.

Factuality Level: 8
Factuality Justification: The article provides a factual account of the UK competition regulator launching an investigation into housebuilders for sharing commercially sensitive information. It includes direct quotes from the Competition and Markets Authority and accurately reports their concerns and recommendations based on their findings. The article does not contain irrelevant information, misleading details, sensationalism, or opinion masquerading as fact.
Noise Level: 3
Noise Justification: The article provides relevant information about the UK’s competition regulator launching an investigation into housebuilders sharing commercially sensitive information. It includes details about the companies involved, the concerns raised by the CMA, and recommendations for improving market outcomes. The article stays on topic, supports its claims with examples, and offers actionable insights for enhancing consumer protections and market competition.
Financial Relevance: Yes
Financial Markets Impacted: The investigation into the housebuilders may impact the housing market and the companies involved.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses an investigation by the U.K.’s competition regulator into whether eight housebuilders have shared commercially sensitive information. While this does not describe an extreme event, it is relevant to financial topics and may impact the housing market and the companies involved.
Public Companies: Barratt Developments (), Bellway (), Berkeley (), Persimmon (), Redrow (), Taylor Wimpey (), Vistry ()
Private Companies: Bloor Homes
Key People:

Reported publicly: www.marketwatch.com