Seven housebuilding firms have agreed to pay a total £100m to affordable housing programmes across the UK following an investigation by the Competition and Markets Authority (CMA).

It follows a probe by the competitions regulator last year and will be the largest payment secured by the CMA as part of a commitments package.

Last year saw the CMA launch an investigation into the seven companies following concerns each had exchanged details about sales including pricing, number of property viewings and incentives offered to buyers such as upgraded kitchens or stamp duty contributions.

The seven housing developers – Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry – have agreed to split the £100m payment between affordable housing programmes across all four nations of the UK.

As part of the agreement, the seven groups have also offered a package of commitments to address the CMA’s concerns, which the regulator will now consult on until 24 July.

The firms have all agreed to work with the Home Builders Federation and Homes for Scotland to develop industry-wide guidance on information sharing, and also agreed not to share certain types of information with each other, including the prices houses have been sold for, except in limited circumstances.

CMA chief executive, Sarah 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.

“Alongside these measures, the housebuilders we investigated have agreed to pay £100m towards affordable homes programmes, which will help communities up and down the country.”

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