Shares in major housebuilders have tumbled after it emerged they are facing a class action lawsuit potentially worth more than £4bn.
The claim, filed on behalf of more than 700,000 people who bought new-build homes in Britain between October 2015 and June 2026, accuses builders of collusion - anticompetitive conduct.
It alleges that Barratt Redrow, Taylor Wimpey, Bellway, Berkeley Group, Persimmon, Vistry Group and Countryside Partnerships shared sensitive information on prices, buyer incentives and sales activity.
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The lawsuit, which requires approval from the Competition Appeal Tribunal before it could proceed, claims that alleged activity weakened competition and drove up new-build home prices.
It is being managed by consumer rights advocate Mark McLaren, who previously worked for Which?.
The value of compensation sought is estimated at between £2.2bn and £4.5bn, equivalent to between £3,100 and £6,200 for each affected homeowner, according to the law firms involved.
Geradin Partners and Hausfeld revealed the case had been filed almost a year after an investigation into alleged anticompetitive practices in the sector was concluded by the Competition and Markets Authority.
A settlement resulted in seven firms paying a record £100m sum towards affordable housing programmes across the UK.
That probe also led to a commitment from companies to refrain from sharing sensitive pricing information and the creation of a new industry compliance framework.
Shares were widely down in response.
Persimmon and Barratt Redrow were the leading fallers on the FTSE 100 in early dealing - both losing around 2%.
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, were yet to comment.
(c) Sky News 2026: Housebuilders face £4bn lawsuit over price conduct claims
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