Housebuilders face £4.5bn legal claim over alleged new-build price inflation

More than 700,000 people who bought a new-build home since October 2015 could be in line for compensation under a proposed legal claim worth up to £4.5 billion against eight of the country's biggest housebuilders.

The action is being launched on behalf of people who bought new-build homes from major developers between October 2015 and 24 June 2026.

The class action is being brought by Mark McLaren, a former parliamentary and legal affairs manager at consumer group Which?, who alleges that homebuyers paid artificially inflated prices because of anti-competitive behaviour among major developers.

He believes affected homeowners could be due compensation of between £3,100 and £6,200 each, working out at up to £4.5 billion.

The case alleges buyers paid more than they should have for their homes because of alleged anti-competitive behaviour by the firms.

The claim follows a Competition and Markets Authority (CMA) investigation into whether major housebuilders had exchanged commercially sensitive information, including details that could influence competition in the market.

Earlier this year, the CMA concluded its investigation without taking further enforcement action after the firms agreed to pay £100 million towards affordable housing programmes and made legally binding commitments not to share commercially sensitive information in future.

Which housebuilders are involved?

The proposed claim targets eight major housebuilding businesses:

• Barratt Redrow

• Bellway

• Berkeley Group

• Bloor Homes

• Persimmon

• Taylor Wimpey

• Vistry Group

• Countryside Partnerships (part of Vistry Group)

 Mark McLaren, the proposed class representative, 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.” 

He is represented by competition law firms Hausfeld and Geradin Partners, acting as co-counsel.

Scott Campbell, 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.”

What happens next?

Before the case can proceed, it must first be approved by the Competition Appeal Tribunal.

The Tribunal will hold an initial certification hearing to decide whether to grant a Collective Proceedings Order, which would allow the claim to move forward as a collective action.

If approved, the case would then proceed to a full trial.

It is a so-called ‘opt-out’ claim so would cover all affected house buyers unless they choose not to be covered.

The housebuilders have been approached for comment.

A spokesperson for Berkely said: "Berkeley is aware of the claim being pursued by Geradin Partners and Hausfeld. Given the nature of the proceedings, it would be inappropriate for us to comment further at this stage.”