A class action legal claim seeking up to £4.5 billion in compensation is set to be launched against seven of Britain's largest housebuilders on behalf of more than 700,000 new home buyers. The claim, brought by former Which? consumer group manager Mark McLaren, alleges that buyers paid higher prices for new-build properties due to anti-competitive behaviour by the firms.
Details of the Claim
The claim targets Barratt Redrow, Bellway, The Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, Vistry Group, and its Countryside Partnerships division. It covers individuals who purchased new build homes in Great Britain between October 2015 and June 24, 2024. The action has been filed with the Competition Appeal Tribunal for approval.
Mr McLaren is represented by competition law firms Geradin Partners and Hausfeld as co-counsel. He estimates each affected homeowner could receive between £3,100 and £6,200 in compensation, totalling between £2.2 billion and £4.5 billion.
Background: CMA Investigation
The legal action follows a Competition and Markets Authority (CMA) investigation into whether the housebuilders shared commercially sensitive information for two years until February 2024. The CMA dropped further action after the firms agreed to pay £100 million into affordable housing programmes and made binding commitments not to share information.
The CMA had found signs that the companies exchanged details about sales, including pricing, number of property viewings, and incentives offered to buyers such as upgraded kitchens or stamp duty contributions. However, the agreement meant the regulator did not rule on whether competition law was broken.
Impact on Homebuyers
Mr McLaren stated: “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. This claim is about standing up for those buyers and ensuring that compensation is delivered to those who deserve it.”
Scott Campbell, a partner at Hausfeld, 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.”
Housebuilders' Response
The housebuilders have been approached for comment. The claim alleges that reduced competition between the major builders led to higher prices for new build homes, affecting buyers as far back as October 2015.
