Major house builders face £4.5bn legal claim over alleged anti-competitive conduct

The documents claim the information reduced the depreciating effects of competition and resulted in homeowners across Great Britain paying more for new build homes than they otherwise would have done.

This, if proven, would be a clear breach of UK competition law and leave house builders liable for large damages.

It follows an earlier Competition and Markets Authority (CMA) investigation into the conduct of major house builders between January 2022 and February 2024.

That investigation resulted in the companies accepting binding commitments in October 2025 to address the CMA’s concerns.

This included a combined £100m affordable housing payment split between government schemes in England, Scotland, Wales and Northern Ireland.

House builders put forward the package of pledges to address the CMA’s competition concerns, on the basis that the watchdog would discontinue its investigation.

The CMA has not made a ruling on whether there was an infringement of competition law and the developers’ offer does not constitute an admission of any wrongdoing.

However, the new claim extends beyond the original period examined by the CMA, alleging that the alleged unlawful information-sharing may have extended well before 2022. It therefore seeks compensation for buyers allegedly affected from October 2015 onwards.

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 case to proceed as a collective action. If approved, the case would then move to a full trial.

Mr 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, house builders 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.”

Patrick Teague, partner at Geradin Partners, said: “We are pleased to have been instructed by Mark McLaren to bring these proceedings, together with our co-counsel at Hausfeld.

“The claim raises important issues about competition in the new build housing market, and we look forward to assisting the tribunal in determining those issues and, if the claim succeeds, securing compensation for affected homeowners.”

Scott Campbell, 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 claim is being brought through HOCR Limited, a special purpose company set up to carry out the litigation.

It is funded by Burford Capital, which has committed up to £29m to the proceedings. Those bringing the case said class members would not be required to pay any costs and would bear no financial risk if the claim is unsuccessful.

Mr McLaren previously brought an opt-out competition damages claim on behalf of millions of new car buyers, which settled for almost £93m in late 2025.

A spokesperson for Berkeley 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.”

Vistry and Bellway declined to comment.

Inside Housing has contacted the named house builders and the Home Builders Federation for comment.