DMCCA consumer protection: What housebuilders need to know

In this article, we explain what housebuilders need to know and offer practical advice to ensure compliance.

New consumer protection rules: Housebuilder context

The consumer protection provisions of the Digital Markets, Competition and Consumers Act 2024 (DMCCA) represent the most significant reform to UK consumer law enforcement in many years.

The new regime strengthens existing consumer protection rules and gives the CMA direct enforcement powers, including the ability to impose fines of up to 10% of a company’s global turnover.

While many of the practices covered by the DMCCA are also dealt with in the New Homes Quality Board’s New Homes Quality Code (the Code) update back in March 2026 (see The New Homes Quality Code March 2026 Update: What you need to know – Walker Morris), housebuilders should note that the CMA’s powers to investigate and sanction unlawful conduct apply alongside any action taken under the Code. The CMA’s recent activity and the conclusion of several cases, resulting in fines and a provision for customer compensation, have highlighted its willingness to enforce the regime and use its new powers to full effect.

Housebuilders will be aware, following its recent investigation into suspected anti-competitive practices around information sharing between 7 of the UK’s largest housebuilders, that the CMA already has the sector in its sights and, although much of the early DMCCA enforcement activity has focused on online retailers, ticketing platforms and service providers, there are clear implications for the living sector. Housebuilders market and sell homes directly to consumers, often using digital channels and sophisticated sales practices that fall directly within the scope of consumer protection legislation.

New enforcement environment

Under the previous regime, most consumer protection enforcement required court involvement, and regulators typically had to demonstrate that a practice was capable of affecting a consumer’s transactional decision.

The DMCCA retains many of the existing unfair commercial practice rules but significantly strengthens enforcement, so the CMA can now directly investigate, determine breaches and impose penalties. The DMCCA also provides for certain “banned practices” which are inherently illegal and where no impact on a consumer’s transactional decision needs to be shown. This enforcement framework is now much faster and more direct, significantly increasing the regulatory risk for businesses operating in consumer-facing markets.

The CMA has made it clear that consumer protection is a strategic priority.

Pricing transparency and ‘drip pricing’

A key area likely to affect housebuilders is pricing transparency.

The DMCCA introduces specific prohibitions on so-called ‘drip pricing’, where consumers are initially presented with one price but discover mandatory additional charges later in the purchasing process. Businesses must now ensure that headline prices include all unavoidable and mandatory charges.

In the residential development sector, this could extend to estate management charges, mandatory service charges, reservation fees, administration fees, and other unavoidable transaction costs.

Many developers already provide information about these costs during the sales process. However, the new regime may require certain charges to be disclosed more prominently and at an earlier stage in marketing materials, online listings and sales discussions.

Misleading statements and omissions

Housebuilders often market developments by reference to a range of factors including (non-exhaustively) property size and specification, energy efficiency credentials, transport connections, future infrastructure projects, proposed amenities, school catchment information, anticipated completion dates, and the like.

Under the DMCCA, businesses must make sure that marketing materials do not contain misleading information and do not leave out material information that consumers need to make informed decisions.

Again, most developers will already have robust approval processes for marketing content, but the new enforcement powers increase the importance of making sure that claims are evidence-based, kept under review, and updated where circumstances change.

Particular care will be required where statements relate to future developments or facilities that are outside the developer’s direct control, such as transport improvements, retail facilities or local authority infrastructure projects.

Promotions, incentives and urgency claims

Developers frequently use promotional incentives to stimulate sales. These may include stamp duty contributions, deposit assistance, mortgage payment support, furniture packages, upgraded specifications, and limited-time discounts.

Such incentives remain permissible, but the DMCCA places greater emphasis on ensuring that promotional claims are genuine and accurately presented. The CMA has identified misleading urgency claims and countdown-style sales tactics as an area of concern.

Developers must be able to substantiate any claims that an offer is available only for a limited period or that a particular incentive represents a genuine saving. Similarly, any statements creating a sense of urgency should accurately reflect commercial reality.

Customer reviews and testimonials

A significant development under the DMCCA is the introduction of specific prohibitions relating to fake reviews.

Businesses must not publish, commission or facilitate fake consumer reviews. They’re also expected to take reasonable and proportionate steps to prevent and remove misleading reviews.

This may be relevant where housebuilders use customer testimonials and reviews in marketing campaigns, development websites, social media channels and even third-party review platforms.

Increased litigation and regulatory risk

The heightened enforcement environment comes at a time when the sector is already facing increased legal scrutiny.

In June 2026, proposed collective proceedings were filed before the Competition Appeal Tribunal, seeking approximately £4.5 billion in damages on behalf of purchasers of new-build homes. The claim follows the CMA’s investigation into information-sharing practices within the housebuilding sector (mentioned above). Although it concerns competition law rather than consumer protection law, the claim serves as a reminder that regulatory investigations can quickly develop into significant litigation and reputational risk.

Practical advice for housebuilders

So, what can housebuilders do? The following practical steps should help minimise the risk of consumer protection breaches/enforcement:

• Review sales and reservation processes, and all consumer ‘touchpoints’, to identify potential pricing transparency/drip pricing risks
• Ensure all mandatory costs are disclosed clearly and prominently at an early stage in the prospective customer’s house-hunting and transactional journey
• Audit and maintain marketing materials for accuracy and completeness
• Ensure all claims in promotional campaigns and incentive schemes can be substantiated
• Implement controls around customer reviews and testimonials
• Provide training to sales, marketing, and customer service teams on the new consumer protection regime
• Review and update customer service and complaints handling policies/processes in light of new DMCCA provisions
• Maintain a comprehensive audit trail of all your efforts.

Consumer protection in housebuilding: How we can help

Our specialist Competition lawyers can work seamlessly with our dedicated living sector lawyers to help housebuilder clients review marketing/customer touch-point materials, and to implement/update policies, procedures and processes to ensure consistency with the DMCCA’s new consumer protection regime. If/when complaints or regulatory investigations do occur, we can support clients with an effective strategic response.

For tailored advice and assistance, or to learn more about our consumer protection training for residential developers, please contact Sarah Ward or Liz Turner.