Britain’s biggest housebuilders face a £4.5bn legal claim about allegations they colluded to increase house prices and rip off buyers.
Nine of the UK’s largest construction businesses have been accused of pushing up the price of new-build homes by wrongly sharing information in breach of competition law.
The landmark lawsuit is being brought by Mark McLaren, a consumer champion, on behalf of 700,000 people who bought new-build homes between October 2015 and June 2026.
If the claim succeeds, homebuyers could get compensation payouts worth up to £6,200 each. The case is being brought forward on an opt-out basis, meaning all eligible homebuyers will automatically be included unless they choose not to be involved.
Housebuilders are accused of sharing commercially sensitive information on prices, incentives and sales activity, leading to buyers paying more for new homes during a period of more than a decade.
The case follows an investigation by the Competition and Markets Authority (CMA) into whether seven of the UK’s biggest housebuilders broke the law by sharing commercially sensitive information between 2022 and 2024.
The investigation was closed after the housebuilders agreed to implement measures to prevent information sharing and pay £100m towards the construction of affordable homes across the UK.
However, the new legal claim goes further than the CMA’s investigation, alleging the information sharing occurred over a much longer period of more than a decade.
The case has been filed against housebuilders Barratt Redrow, Bellway, Redrow, The Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, Vistry Group and Countryside Partnerships.
Mr McLaren, who was formerly a public affairs adviser at Which?, 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.”
The case will be heard in the UK’s Competition Appeal Tribunal. Mr McLaren will be represented by law firms Geradin Partners and Hausfeld.
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 case is being funded by Burford Capital, which specialises in bankrolling litigation and has committed up to £29m. Burford puts up capital to fund cases and typically takes a share of any winnings in successful cases to recoup its investment.
Shares in the housebuilders named in the case tumbled on the London Stock Exchange. Persimmon was the worst hit, dropping almost 3pc, while Barratt Redrow, Bellway and Berkeley all fell by more than 2pc.
Berkeley, Bellway, Vistry and Taylor Wimpey declined to comment. The other housebuilders named in the case have been approached for comment.
