The Business
Economy

Housebuilders face £4.5bn legal action over home sales

Housebuilders, such as Barratt Homes, face a class action over the sale of homes in the UK

Britain’s biggest housebuilders, including Barratt Redrow and Taylor Wimpey are facing ​a potential £4.5bn class action lawsuit over alleged anti-competitive conduct, according ‌to a consumer claim filed this week.

The claim, which also includes Bellway, Berkeley Group, Persimmon, Vistry Group and Countryside Partnerships, now requires approval from the UK’s Competition Appeal Tribunal ​before it can proceed. That can typically take 6-12 months.

The claim ​is being launched on behalf of more than 700,000 people ⁠who bought a new-build home in Britain between October 2015 and June ​24, 2026, by proposed class representative Mark McLaren, who previously worked for the ​Consumers’ Association, better known as Which?

It remains unclear how many homes in Scotland may be impacted by such a claim.

The value of compensation sought is estimated at between £2.2bn and £4.5bn, equivalent to between £3,100 and £6,200 for each affected homeowner, law firms Geradin Partners ​and Hausfeld said in the statement.

Court documents state that the housebuilders shared ​sensitive information on prices, buyer incentives and sales activity, weakening competition and driving up new-build ‌home ⁠prices.

Taylor Wimpey, Vistry and Bellway have declined to comment on the claim. Berkeley said it was aware of the claim being pursued but that it would be inappropriate to comment further given the nature of the proceedings.

The other homebuilders named in the claim and ​the industry representative ​body, the Home ⁠Builders Federation, did not immediately respond to requests by the Reuters news agency for a comment.

In February 2024, the CMA opened its investigation into suspected exchanges of competitively sensitive information involving housebuilders.

On 30 October 2025, the CMA accepted voluntary commitments offered by the seven housebuilders and closed its investigation without reaching a finding on whether the housebuilders breached competition law.

As part of the commitments, the seven housebuilders committed to engage with and support Home Builders Federation and Homes for Scotland to develop and publish UK competition law guidance for the housebuilding industry in relation to information exchange .

 

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