New CEBR analysis for Babelfish finds 1.4m homes could be built on brownfield land, adding 0.9% to GDP a year for a decade. Half already have planning permission.
Housebuilders face £4.5bn class action over new-build prices
Barratt, Persimmon, Taylor Wimpey and four others face a £4.5bn claim. 700,000 buyers could be owed up to £6,200 each after the CMA's collusion investigation.
A class action lawsuit is poised to target seven of Britain's largest housebuilders, potentially seeking up to £4.5billion in compensation for homebuyers.
The legal challenge, spearheaded by Mark McLaren, a former parliamentary and legal affairs manager at consumer group Which?, alleges that consumers were forced to pay inflated prices for new-build properties due to anti-competitive practices by the firms.
The action names Barratt Redrow, Bellway, The Berkeley Group, Bloor Homes, Persimmon, Taylor Wimpey, Vistry Group, and its Countryside Partnerships division.
It is being brought on behalf of over 700,000 individuals who purchased new-build homes across Britain between October 2015 and 24 June this year.
The claim now awaits approval from the Competition Appeal Tribunal.
This development follows an ongoing investigation by the Competition and Markets Authority (CMA) into whether these housebuilders shared commercially sensitive information for a two-year period, concluding in February 2024.
The class action case alleges that property buyers paid more for new-build homes than they should have because of reduced competition between the major builders.
The CMA dropped further action in return for an agreement by the firms to pay £100million into affordable housing programmes and make binding commitments not to share information.
Mr McLaren believes each homeowner could be due compensation of between £3,100 and £6,200 each – totalling between £2.2billion and £4.5billion. He said the claim was about "standing up for buyers".
The housebuilders have been approached for comment.
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Survation polling for Babelfish finds more people back than oppose charging housebuilders council tax on consented land they haven't built on. 49% back brownfield.
New CEBR research for Babelfish: 1.4m brownfield homes would unleash £259bn and return £1.92 for every £1 spent. The big five sit on 869,000 plots instead.
Britain's big five sit on 869,000 plots worth £275bn and build slowly to keep prices high. Start the rates clock the day permission is granted.
Barratt Redrow, Taylor Wimpey, Persimmon, Vistry and Bellway hold 869,000 plots between them. Taylor Wimpey's landbank alone would take 19.5 years to build out.