A landmark class action against eight of Britain's largest housebuilders could see more than 700,000 new-build homeowners receive compensation of between £3,100 and £6,200 each, with total claims potentially reaching £4.5 billion.
Who Is Being Sued and Why
The legal action targets Barratt Redrow, Bellway, The Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, Vistry Group and its Countryside Partnerships division. It alleges that these firms shared sensitive commercial information—including prices, buyer incentives, and sales activity—which the lawsuit claims led to consumers paying more for new-build properties than they would have in a properly competitive market.
The claim is being led by Mark McLaren, a former legal affairs manager at consumer group Which?, on behalf of anyone who bought a new-build home in Great Britain between October 2015 and June 24 this year. The case is being brought to the Competition Appeal Tribunal, which must grant permission for the collective proceedings to continue.
Background: The CMA Investigation
The action follows an investigation by the Competition and Markets Authority (CMA) into potential anti-competitive behaviour by the housebuilders. The CMA found evidence that the firms had exchanged details about pricing, property viewings, and incentives such as upgraded kitchens or stamp duty contributions. However, the investigation was dropped after the companies agreed to pay £100 million into affordable housing programmes and made binding commitments not to share information in future.
Because the regulator accepted these undertakings, it did not formally rule on whether the companies had broken competition law. Nonetheless, McLaren argues that the evidence gathered by the CMA provides a strong basis for the compensation claim.
What Homeowners Could Receive
According to McLaren, each affected homeowner could be due compensation of between £3,100 and £6,200. The total value of the claim is estimated at £4.5 billion, reflecting the number of properties sold during the relevant period and the alleged overcharge resulting from the information-sharing.
Scott Campbell, a partner at law firm Hausfeld, which is co-counsel alongside Geradin Partners, said: “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.”
Housebuilders' Response
The housebuilders have been contacted for comment. A spokesperson from Berkeley Group said: “Berkeley is aware of the claim being pursued by Geradin Partners and Hausfeld. Given the nature of the proceedings, it would be inappropriate for us to comment further at this stage.” The other companies have not yet issued public statements.
If the tribunal gives the go-ahead, affected homeowners will be automatically included in the claim unless they choose to opt out. The case is expected to be closely watched as one of the largest collective actions in the UK housing sector.
