UK housebuilders face potential lawsuit over alleged anti-competitive conduct
Overview of the Class Action Lawsuit Against UK Housebuilders
LONDON, June 30 (Reuters) - Britain's biggest housebuilders, including Barratt Redrow and Taylor Wimpey, are facing a potential multi-billion-pound class action lawsuit over alleged anticompetitive conduct, according to a consumer claim filed on Tuesday.
Housebuilders Involved and Legal Proceedings
The claim, which also includes Bellway, Berkeley Group, Persimmon, Vistry Group and Countryside Partnerships, now requires approval from Britain's Competition Appeal Tribunal before it can proceed. That can typically take 6-12 months.
Details of the Claim and Proposed Class Representative
The claim is being launched on behalf of more than 700,000 people who bought a new-build home in Britain between October 2015 and June 24, 2026, by proposed class representative Mark McLaren, who previously worked for the Consumers' Association, better known as Which?.
Estimated Compensation and Law Firms Involved
The value of compensation sought is estimated at between £2.2 billion and £4.5 billion, equivalent to between £3,100 and £6,200 for each affected homeowner, law firms Geradin Partners and Hausfeld said in the statement.
Allegations of Anti-Competitive Conduct
Court documents state that the housebuilders shared sensitive information on prices, buyer incentives and sales activity, weakening competition and driving up new-build home prices.
Responses from Housebuilders and Industry Bodies
Taylor Wimpey, Vistry and Bellway declined to comment on the claim. Berkeley 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 other homebuilders named in the claim and the industry representative body, the Home Builders Federation, did not immediately respond to Reuters' requests for a comment.
Background: Competition Watchdog Probe and Settlement
The claim follows a probe by Britain's competition watchdog into potential anticompetitive behaviour in the sector, which was settled last October after seven housebuilders committed to a combined 100 million pounds ($132 million) payment to affordable housing programs to address the regulator's concerns.
Agreements and Compliance Measures
As part of that, the companies had also agreed to refrain from sharing sensitive pricing information with peers and work with industry bodies to develop guidance on information sharing and introduce enhanced compliance measures.
Exchange Rate Information
($1 = 0.7561 pounds)
Reporting Credits
(Reporting by Muvija M; Editing by Kate Holton)
