Seven of Britain's largest housebuilders, including Barratt Redrow and Taylor Wimpey, are facing a class action lawsuit seeking up to £4.5bn in damages. The claim, brought on behalf of more than 700,000 buyers of new-build homes between 2015 and 2026, alleges the companies colluded to inflate prices by sharing commercially sensitive information.
The lawsuit is led by Mark McLaren, former legal affairs manager at Which?, and is backed by law firms Geradin Partners and Hausfeld. It targets Barratt Redrow, Bellway, Berkeley Group, Persimmon, Taylor Wimpey, Vistry Group, Countryside Partnerships (part of Vistry) and privately owned Bloor Homes. Shares in the listed firms fell on Tuesday following the announcement.
Compensation is estimated at between £2.2bn and £4.5bn, equating to £3,100 to £6,200 per affected homeowner. The claim requires approval from the Competition Appeal Tribunal, a process expected to take six to 12 months. Court documents allege the housebuilders shared sensitive data on prices, buyer incentives and sales activity, weakening competition.
The action follows a Competition and Markets Authority (CMA) investigation that found evidence of possible information sharing. In 2023, the CMA secured binding commitments from the seven firms not to share sensitive pricing information, and they agreed to pay £100m to affordable housing schemes without admitting wrongdoing.
McLaren said buying a home is a major financial commitment and if housebuilders did not compete properly, homeowners may have been left out of pocket. However, RBC Capital Markets analyst Anthony Codling argued the claim is difficult to prove, noting the CMA did not conclude competition law had been infringed. The housebuilders have been contacted for comment; Vistry, Bellway and Taylor Wimpey declined to comment.
