Burford to fund opt-out competition claim against UK housebuilders Over new-build pricing

Burford Capital has agreed to fund a proposed opt-out competition damages claim that will seek compensation for UK homebuyers allegedly overcharged for new-build homes following years of unlawful information sharing among major housebuilders.

The claim is expected to be filed in the first quarter of 2026 in the UK Competition Appeal Tribunal and will be brought on behalf of purchasers of new-build homes across Great Britain. It will allege that seven of the country’s largest housebuilders exchanged competitively sensitive information, including achieved selling prices, buyer incentives, and sales and reservation data, leading to artificially inflated home prices.

The proposed class representative is Mark McLaren, a consumer advocate with prior experience leading collective actions, who will pursue the case through HOCR Limited, a special purpose vehicle established for the litigation. McLaren previously acted as class representative in a follow-on competition claim on behalf of new car buyers, which settled in 2025 for nearly £93 million, subject to tribunal approval in January 2026.

The allegations follow a market investigation by the Competition and Markets Authority into suspected anti-competitive conduct in the new-build housing sector. The CMA concluded that seven housebuilders had engaged in frequent exchanges of commercially sensitive information and accepted binding commitments requiring the companies to cease those practices.

According to the claim team, the alleged conduct occurred in a market of substantial scale. The UK residential construction sector was valued at approximately £88.6 billion in 2025, with new-build homes accounting for more than three-quarters of total activity. The claim will argue that information sharing in a market of that size was capable of distorting competition nationwide and causing widespread consumer harm.

The defendants are expected to include Barratt Redrow plc, Bellway plc, The Berkeley Group plc, Bloor Homes Limited, Persimmon plc, Taylor Wimpey plc, and Vistry Group plc, along with their respective group companies, all of which were subject to the CMA’s investigation.

The legal team comprises Geradin Partners and Hausfeld & Co. LLP as co-counsel. Economic evidence will be led by Joseph Bell, a partner at Oxera, while the advocacy team will be headed by Tim Ward KC of Monckton Chambers, supported by counsel from Fountain Court Chambers.

Burford’s backing places one of the largest global litigation funders behind what is expected to be among the most significant collective actions yet brought in the UK housing sector.