A monumental class action lawsuit, potentially seeking up to £4.5 billion in compensation, is set to be launched against seven of Britain's most prominent housebuilders. The legal challenge aims to recover funds for hundreds of thousands of homebuyers who allegedly overpaid for new-build properties.
Mark McLaren, a former parliamentary and legal affairs manager at consumer group Which?, is leading the charge. The claim targets Barratt Redrow, Bellway, The Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, Vistry Group, and its Countryside Partnerships division. Mr McLaren alleges that these firms engaged in anti-competitive behaviour, forcing consumers to pay inflated prices for their new homes. The action is being brought on behalf of more than 700,000 people who purchased new-build properties across Great Britain between October 2015 and 24 June this year.
Background of the Investigation
The proposed class action now requires approval from the Competition Appeal Tribunal before proceeding. The development follows a prior investigation by the Competition and Markets Authority (CMA), which examined whether the housebuilders had shared commercially sensitive information over a two-year period, concluding in February 2024. While the CMA ultimately dropped further enforcement action, it did so in return for the companies agreeing to pay £100 million into affordable housing programmes and making binding commitments not to share such information in the future.
The CMA said in 2025 that it launched the probe amid concerns the firms were sharing commercially sensitive information, which could have impacted the development of sites and prices of new homes. The watchdog found signs they had exchanged details about sales including pricing, number of property viewings and incentives offered to buyers such as upgraded kitchens or stamp duty contributions. But the agreement secured with the builders meant the regulator did not need to rule on whether the companies broke competition law.
Allegations and Potential Compensation
The class action case being led by Mr McLaren alleges that property buyers paid more for new build homes than they should have because of reduced competition between the major builders, and claims that it believes this was affecting buyers as far back as October 2015. Mr McLaren, who is being represented by competition law firms Geradin Partners and Hausfeld as co-counsel, believes each affected homeowner could be due compensation of between £3,100 and £6,200 each – totalling between £2.2 billion and £4.5 billion.
Mr 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. This claim is about standing up for those buyers and ensuring that compensation is delivered to those who deserve it.”
Importance of Collective Action
Scott Campbell, a partner at Hausfeld, 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.”
The housebuilders have been approached for comment. The lawsuit covers the period between October 2015 and 24 June 2026.
