AN AGREEMENT to move on unsold plots at a Whitchurch development has led to the Government allowing a billion-pound merger between two major UK housebuilders.

Barratt’s £2.5 billion purchase of Redrow is set to go ahead, after regulators accepted the companies’ measures designed to assuage competition concerns.

The Competition and Markets Authority (CMA) had raised concerns the deal could lead to higher prices and lower quality homes in one area, the Tilstock Road development in Whitchurch.

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Joel Bamford, executive director for mergers at the CMA wrote on Friday that measures put forward by the companies represented ‘as comprehensive a solution as is reasonable and practicable'.

He added that they ‘remedy, mitigate or prevent the SLC (significant lessening of competition) identified… and any adverse effects resulting from it’.

Concerns were raised over the merger potentially leading to houses being built to a lower standard with higher prices because of a lack of competition.

But in a report released by the CMA on Friday, it was confirmed the obstacles to the merger had been removed.

It said: “The parties entered into a legally binding mandate of October 1, 2024 with the proposed agent to sell the unsold plots on terms approved by the CMA.”

It added that the sales of the plots cannot exceed the ‘gross asking price’ and that incentives on the homes offered by Redrow remain.

David Thomas, chief executive of Barratt, says the merger will speed up ‘vital’ building of homes in the UK.

He said: “With this combination, we have created an exceptional housebuilder in terms of quality, service and sustainability, able to accelerate the delivery of the homes this country needs.

“Together, we offer a broader range of homes and price points for our customers who we will continue to put at the heart of everything we do.

“Our focus now is on integrating our businesses as efficiently and effectively as we can to deliver the expected benefits of the Combination.

“We will leverage the best of both companies to deliver significant benefits to our people, our customers and our supply chain partners, and ensuring that Barratt Redrow is set up to deliver long term value to all of its stakeholders.”