Major Southwark house-builders are being investigated over possible breaches of competition law.
Berkeley Group, the developer behind the Borough Triangle, Aylesham Centre and Malt Street schemes, is among eight firms being probed by the Competition and Market Authority (CMA).
The CMA’s investigation relates to “concerns that they may have exchanged competitively sensitive information”.
Barratt Developments, Bellway, Bloor Homes, Persimmon, Redrow, Taylor Wimpey and Vistry Group are also being investigated.
Numerous Southwark projects have been spearheaded by some of these developers.
Barratt Homes’ developments include Maple Quays (phase 1 of the Canada Water regeneration), The Galleria development in Peckham and Redwood Park built on former council land in Surrey Quays.
Taylor Wimpey developed the Music Box, providing the headquarters of London College of Creative Media (LCCM) and ten storeys of housing near Southwark station.
Vistry Group was appointed by Notting Hill Genesis, to build the development on the old Amersham site, on Thurlow Street, of the Aylesbury redevelopment.
With fines being up to 10 per cent of global revenue, the house builders could be fined a combined £2.5 billion if found guilty of anti-competitive behaviour.
The investigation stems from the CMA’s year-long study into competition in the housebuilding sector, in which the regulator raised a raft of “fundamental concerns” on issues such as planning and market structures.
CMA chief executive Sarah Cardell said: “[We have] 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 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.”
A Taylor Wimpey spokesperson said: “Taylor Wimpey is co-operating fully with the CMA in relation to this investigation.”
Barratt Homes, Berkeley Group, Bloor Homes, Persimmon, Redrow and Vistry were approached for comment.