Homebuyers to take action against builders

Concerns about overcharging for new homes by UK housebuilders are set to escalate into landmark litigation later this year. Consumer advocate Mark McLaren, with a distinguished legal team, will file an opt-out competition damages claim on behalf of homebuyers who purchased new-build homes from seven of the largest housebuilders in the UK. This significant claim will allege that these housebuilders have exchanged competitively sensitive information over several years, including details about achieved selling prices, buyer incentives, and sales and reservation activity, which enabled them to impose higher pricing on new properties.

According to the Competition and Markets Authority (CMA), the residential construction market’s size in 2025 was estimated to be about £88.6 billion, with new builds making up more than three-quarters of this market. Such anti-competitive behaviour in a sector of this magnitude can drastically affect anyone looking to buy a new home. This upcoming claim follows an extensive CMA investigation that has scrutinised the suspected anti-competitive behaviours of the seven housebuilders involved in new home sales across Great Britain. The CMA’s findings prompted binding commitments from these builders to cease their anti-competitive practices.

The claim will be filed at the Competition Appeal Tribunal, the UK’s dedicated competition court, is intended to be filed in Q1 2026 and has secured funding from Burford Capital, a leading global finance and asset management firm specialised in legal funding. Mark McLaren expressed the urgency of this claim, stating "Buying a home is one of the most important and most expensive purchases a person will ever make. Homebuyers should be confident that the housing market is transparent and competitive so that they pay a fair price for their new home, not an inflated one.”

Scott Campbell, a partner at Hausfeld, highlighted the importance of the claim by stating "This is a significant proposed collective claim concerning alleged anti-competitive conduct in the new-build housing market.” He noted their commitment to leveraging their expertise in both collective actions and cartel litigation to support this case. Patrick Teague, Partner at Geradin Partners, reiterated the gravity of the situation, concluding "The CMA’s findings describe frequent exchanges of competitively sensitive information relating to achieved prices, incentives, and sales and reservation activity. This is the type of conduct that can distort competition and harm consumers.” The collective efforts signify a critical step towards restoring fairness in the UK housing market, paving the way for homebuyers seeking justice against major housebuilders.

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