Eight UK housebuilders being investigated over alleged “anti-competitive behaviour” could pay a combined maximum penalty of billions if they are found guilty.

The Competition and Markets Authority (CMA) announced on Monday it was opening a probe into alleged breaches of competition law by Barratt, Bellway, Berkeley, Bloor Homes, Persimmon, Redrow, Taylor Wimpey and Vistry.

The CMA said it was investigating whether the accused housebuilders had been sharing “commercially sensitive information” to “influence the price and build-out of new homes”. It warned that such activity may “weaken competition in the market”.