A class action lawsuit worth potentially more than £4bn has been filed against some of Britain’s biggest housebuilders, sending their shares sharply lower.
The claim has been brought on behalf of more than 700,000 people who purchased new-build homes in Britain between October 2015 and June 2026.
The lawsuit accuses the builders of anticompetitive conduct, specifically alleging collusion over prices, buyer incentives, and sales activity.
Named defendants include Barratt Redrow (BTRW.L), Taylor Wimpey (TW.L), Bellway (BWY.L), Berkeley Group (BKG.L), Persimmon (PSN.L), Vistry Group, and Countryside Partnerships.
The claim alleges that these companies shared sensitive commercial information in ways that weakened competition and artificially drove up new-build home prices across Britain.
Compensation sought is estimated at between £2.2bn and £4.5bn, which works out to between £3,100 and £6,200 per affected homeowner, according to the law firms involved.
The case is being managed by consumer rights advocate Mark McLaren, who previously worked for Which?, and was filed by law firms Geradin Partners and Hausfeld.
Before any proceedings can advance, the lawsuit requires approval from the Competition Appeal Tribunal, meaning the legal battle could still face significant hurdles.
The filing comes nearly a year after the Competition and Markets Authority concluded an investigation into alleged anticompetitive practices within the housebuilding sector.
That earlier probe resulted in a settlement where seven firms paid a record £100m sum towards affordable housing programmes across the UK.
The CMA investigation also prompted the companies to commit to refraining from sharing sensitive pricing information and led to the creation of a new industry compliance framework.
Markets reacted swiftly to the news, with shares across the sector falling sharply in early trading on the London Stock Exchange.
Persimmon and Barratt Redrow were the leading fallers on the FTSE 100 in early dealing, both losing around 2% of their value.
Taylor Wimpey, Vistry, and Bellway all declined to comment on the claim when approached for a response.
Berkeley Group 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 Home Builders Federation and the remaining housebuilders named in the lawsuit had not yet issued public statements at the time of reporting.
