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The UK's competition watchdog has raised concerns about the amount of land two housing developers hold in north Shropshire and Cheshire.

It follows Barratt Homes' proposed £2.5bn buyout of rival Redrow.

The Competition and Markets Authority (CMA) said the deal could lead to higher prices and lower quality homes for homebuyers in the counties where both firms have big developments.

It has given the companies the opportunity to submit proposals to address the concerns.

The CMA said its concerns involve an 11-mile area which included Nantwich, Ellesmere and Market Drayton but it was not concerned on a national level.

Joel Bamford, executive director for mergers at the watchdog, said: "Prospective home buyers must not be disadvantaged as a result of deals like this one - with the potential loss of competition leading to even higher house prices or lower quality homes."

But the CMA also said the merged business would continue to face competition from rivals nationally and in all other overlapping local areas.

In a joint statement, Barratt and Redrow said they would engage with the watchdog.

They said they had "identified undertakings which we believe will address those concerns".

But they also said they did not see a need to sell any of their land.

Barratt chief executive David Thomas said: "We remain confident that the combination of Barratt and Redrow will be approved and that it is in the best interests of our customers and wider stakeholders."

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