Eight of Britain’s largest housebuilders are facing a proposed class action worth up to £4.5 billion, with more than 700,000 homebuyers claiming they paid inflated prices for new-build properties due to alleged anti-competitive practices.
The claim, set to be filed with the Competition Appeal Tribunal, is being brought by Mark McLaren, a former parliamentary and legal affairs manager at consumer group Which?, against Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, Vistry Group and its Countryside Partnerships division.
The action represents purchasers of new-build homes in Great Britain between October 2015 and 24 June 2026.
CMA investigation background
The proposed claim follows an investigation by the Competition and Markets Authority into allegations that major housebuilders exchanged commercially sensitive information over a two-year period ending in February 2024. The regulator closed its investigation after the companies agreed to pay £100 million towards affordable housing programmes and accepted legally binding commitments not to share commercially sensitive information in future.
McLaren’s claim alleges the exchange of information reduced competition between the firms, resulting in consumers paying more than they should have for new-build properties. The claim argues the impact on house prices stretches back to October 2015.
Compensation estimates
Represented by competition law firms Geradin Partners and Hausfeld, McLaren estimates affected homeowners could each be entitled to between £3,100 and £6,200 in compensation, giving the claim a potential total value of between £2.2 billion and £4.5 billion.
McLaren said: “Buying a home is one of the biggest financial commitments most of us will make. If, as seems to be the case, housebuilders shared sensitive pricing and sales information with one another instead of competing properly, homeowners across Great Britain may well have been left out of pocket as a result.”
Patrick Teague, partner at Geradin Partners, commented: “The claim raises important issues about competition in the new-build housing market, and we look forward to assisting the Tribunal in determining those issues and, if the claim succeeds, securing compensation for affected homeowners.”
Market implications
The class action comes as the UK housing market shows signs of weakening, with potential compensation payments adding financial pressure to major developers. The legal proceedings could also impact housing transaction forecasts as buyers and investors assess the implications for new-build pricing.
Scott Campbell, partner at Hausfeld & Co. LLP, added: “For most homeowners, bringing an individual claim simply isn’t realistic, as the cost and complexity put it out of reach. That’s why this collective action is so important. It provides a practical route for hundreds of thousands of consumers to seek compensation where they may otherwise have had no way of doing so.”
The Competition Appeal Tribunal will determine whether the claim can proceed as a collective action and, if successful, assess the level of compensation owed to affected homeowners.
