More than 700,000 new-build buyers could be affected by a legal claim worth up to £4.5bn over alleged price inflation by major housebuilders.
People who bought new-build homes from some of Britain’s biggest housebuilders could be owed around £3,100 to £6,200 if the legal claim succeeds.
The claim alleges that major developers exchanged commercially sensitive information, including achieved selling prices, buyer incentives, reservation data and details about customer demand.
It argues that this weakened competition in the new-build housing market and caused buyers to pay more than they should have for their homes.
The claim has been filed in the Competition Appeal Tribunal against Barratt Redrow, Redrow, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, Vistry Group and Countryside Partnerships.
The claim is being brought by HOCR Limited, a company set up specifically to bring the case on behalf of affected homebuyers. Consumer champion Mark McLaren is leading the claim and has instructed competition law specialists Geradin Partners and Hausfeld as co-counsel.
McLaren, who says the case is about whether people were overcharged when making the biggest purchase of their lives, said:
“Buying a home is one of the biggest financial commitments most of us will make. If, as seems to be the case, housebuilders 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.”
If you bought a new-build home from one of the housebuilders involved, you might be eligible to claim compensation if the claim is won.
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