A £4.5 billion class action lawsuit is set to be launched against eight of Britain's largest housebuilders, alleging that they inflated prices for new-build homes by exchanging sensitive information. Over 700,000 homebuyers could benefit from the claim, which targets Barratt Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, Vistry Group, and its Countryside Partnerships division.
The class action, spearheaded by former parliamentary and legal affairs manager Mark McLaren, is being filed with the Competition Appeal Tribunal. It represents individuals who purchased new-build homes in Great Britain between October 2015 and 24 June 2026, following an investigation by the Competition and Markets Authority (CMA). The CMA had concluded in February 2024 that major housebuilders exchanged commercially sensitive information over a two-year period, but closed its investigation after companies agreed to contribute £100 million towards affordable housing.
McLaren's claim, supported by Geradin Partners and Hausfeld, argues that the alleged exchange of information diminished competition among the firms, leading consumers to pay more than they should have for their homes. Estimates suggest affected homeowners could each be entitled to compensation ranging from £3,100 to £6,200, contributing to an overall estimated value of £2.2 billion to £4.5 billion.
The housing market in the UK has shown mixed signals recently, with average asking prices seeing a 0.8% increase in May and house price growth continuing to moderate. If successful, this class action could add further financial pressure on major developers already facing increased costs for materials and labour, potentially having significant implications for first-time buyers who rely on new-build incentives.
Individual claims against large corporations are often prohibitively expensive and complex for homeowners, making the class action a crucial collective avenue for redress. The case is set to be heard by the Competition Appeal Tribunal, which will determine whether the housebuilders' alleged practices had a significant impact on house prices over the nine-year period.