Editor's note: This brief was summarised by The Property AI Newsroom from a report by Guardian Property. Read the original article for full details.

Major UK Housebuilders Face Class Action Over Alleged Price Collusion

A class action lawsuit has been launched against several of Britain’s largest housebuilders, alleging collusion to inflate the prices of new-build homes. The legal action seeks up to £4.5 billion in compensation on behalf of more than 700,000 buyers of new-build properties between 2015 and 2026.

The lawsuit targets Barratt, Bellway, Berkeley Group, Persimmon, Taylor Wimpey, Vistry Group, and Bloor Homes. The claim is being led by Mark McLaren, a former legal affairs manager at the consumer group Which?, and is represented by law firms Geradin Partners and Hausfeld. The compensation sought is estimated at between £2.2 billion and £4.5 billion, which could mean between £3,100 and £6,200 for each affected homeowner.

The claim alleges that the housebuilders shared sensitive information on prices, buyer incentives, and sales activity, which weakened competition and drove up the cost of new-build homes. The class action follows a Competition and Markets Authority (CMA) investigation that found evidence companies might have shared commercially sensitive details affecting home prices. The CMA investigation resulted in binding commitments from the seven housebuilders not to share sensitive pricing information and a combined payment of £100 million to affordable housing schemes across the UK. The companies did not admit wrongdoing as part of this settlement.

The class action requires approval from the Competition Appeal Tribunal before it can proceed, a process that typically takes between six and twelve months. Shares in the listed housebuilders fell following news of the claim.

For letting agents and inventory clerks, the outcome of this case could have implications for the new-build market, potentially affecting pricing, demand, and the transparency of sales practices. The case highlights ongoing scrutiny of the UK residential construction sector and the importance of compliance with competition regulations.