Housebuilding giants hit with £4.5bn lawsuit for allegedly overcharging buyers
Seven major UK housebuilders face a £4.5bn class action lawsuit alleging they overcharged 700,000 buyers between 2015 and 2026.Summary
Seven of Britain's largest housebuilders are facing a class action lawsuit worth a potential £4.5bn in damages over allegations they overcharged 700,000 buyers of new-build properties. The lawsuit, led by Mark McLaren and represented by competition law firms Geradin Partners and Hausfeld, alleges that customers who purchased homes between October 2015 and June 2026 paid higher prices because of less competition between the major housebuilders. The action follows a discontinued investigation by the Competition and Markets Authority. Shares in the affected firms, including Barratt Redrow, Persimmon, Taylor Wimpey, Berkeley, Bellway, Bloor Homes, and Vistry Group, fell on the news. City analysts, such as Anthony Codling at RBC Capital Markets, remain doubtful of the legal action's success, noting that homebuilders are price takers rather than setters. The sector is already struggling with government building targets, rising costs, and interest rate concerns.
(Source：City A.M.)