Housebuyers who purchased new-build homes in the UK could be entitled to billions of pounds in compensation after a group of major builders was accused of price collusion. Some of the country's largest housebuilding companies are facing a £4.5 billion claim over allegations that they exchanged commercially sensitive information, reducing competition and forcing consumers to pay more than they should have for their homes.
The claim targets Barratt, Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, and Vistry Group, including its Countryside Partnerships division. Those affected would need to have purchased a new-build property in Great Britain between October 2015 and 24 June 2026.
The potential class action follows an investigation by the Competition and Markets Authority (CMA), which looked into allegations of anti-competitive behaviour among major housebuilders over a two-year period. Although the regulator concluded its probe with agreements that included £100 million towards affordable housing, McLaren's claim argues the impact on house prices dates back to October 2015.
The core of McLaren's argument is that this alleged exchange of information directly led to consumers paying more than they should have for their new homes. With each affected homeowner potentially entitled to compensation ranging from £3,100 to £6,200, the claim estimates a total value between £2.2 billion and £4.5 billion.
For context, average house prices have risen considerably since 2015, with fluctuations varying regionally and with interest rate changes. New-build premiums, for example, can significantly inflate prices, particularly affecting first-time buyers relying on schemes like Help to Buy or facing increasing mortgage rates. A higher purchase price also means a larger stamp duty bill for the buyer, further exacerbating the financial impact.
Mark McLaren stated, "Buying a home is one of the biggest financial commitments most of us will make. If housebuilders shared sensitive pricing and sales information instead of competing properly, homeowners across Great Britain may well have been left out of pocket as a result."