UK housebuilders could face price changes after CMA challenge

• Housebuilders may have to pay back more than £700 in charges to new home buyers in the UK.
• Competition watchdog says the amount could be between £2.2 billion and £4.5 billion
• To start with, a Competition Appeal Tribunal will review the CMA’s findings on 2024

British homebuilders are likely to face a collective penalty, with Barratt, Bellway, Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey and Vistry, facing the prospect of refunding buyers with a total amount that could be as much as £3 100–£36 200 for each new home.

According to Mark McLaren, chief executive of Which?, the group could have to refund more than 700,000 buyers, who bought new homes between 2015 and 24 April 2026 (figures cover the period 2015–2026).

The watchdog said that the companies could face penalties ranging from £2.2 billion to £4.5 billion, which would work out to about £3 100–£36 200 per household, depending on the size of the company, with the ruling to be made by Geradin Partners and Hausfeld.

As for the appeal, it will be reviewed by the Competition Appeal Tribunal. The ruling, it says, could be as long as 12 months.

Under the legal documents, the companies admitted that they had violated the pricing rules for new homes, and that they would pay back the money to buyers. The companies could face penalties ranging from £2.2 billion to £4.5 billion, which would work out to about £3 100–£36 200 per household, depending on the size of the company.

The collective penalty is the result of a Competition and Markets Authority (CMA) investigation, which took two years and concluded in 2024. The material in the documents, which were published in 2024, says that homebuilders were found to have broken competition rules by agreeing on the resale of new homes and, as a result, the firms could face penalties.

Meanwhile, the CMA said it would not accept the companies’ argument that the charges were not illegal. It also said it would consider the possibility of penalties for the companies, including a fine of £100 million for the programme of the three countries.

For the information provided by the companies, the companies did not accept the charges, but said they would have to pay. According to the documents, Persimmon — 2.6%, Barratt — 2.3%, Bellway — 2.2%, Vistry — 1.8%, Berkeley Group — 1.3%, Taylor Wimpey — 1.7%; Bloor Homes, the private company.

In addition, the documents say that Vistry, Bellway and Taylor Wimpey would be the most affected by the penalty, while the other companies would be less affected.

Tags: Europe/Politics/Economy/Research