New-build homebuyers could be owed thousands over alleged price inflation

[Adsibob]

I know this site is more for self-build than for buyers of new-build, but posting this anyway as it's pretty significant imo:

https://consumervoice.uk/homes/housebuilders-claim-new-build-buyers-compensation/

[MPx]

Interesting - actually taking action against "cartel" like activity.  On the other hand, the further I've gotten into self build, I simply don't understand how building houses is a viable business even at their inflated prices.  On our last one (sold mid 2025) we broke even if you ignore 10 years of inflation and all the free labour - so a massive loss of wealth in reality - glass half empty ; or we lived in luxury rent free for a decade - glass half full?  The current one is shaping up much worse.  Looking like it will cost approx 150% of its market value to build despite me doing everything for "free" post water tight shell.  Doesn't bother us as we do it for ourselves and have exactly what we want (which is the entire point of doing it) - but we have realised some understanding of why new builds are thrown together with appalling quality when you see how cheap they need to sell them vs the costs of build and materials.

[kandgmitchell]

Well now the "have you had a car finance deal in the last five years then you could be owned thousands in compensation" adverts are fading I suppose we'll have the "have you bought a new house in the last ten years" adverts offering to claim back all that money on your behalf.

At present the radio has "did you buy a park home and find a) it's not worth much now and b) the service charges are now extortionate, then you may have been mis-sold (or just gullible)" adverts. The claims industry has to keep looking for the next golden egg to keep it in business.....

[SteamyTea]

7 hours ago, kandgmitchell said:

did you buy a park home

Or a flat.

 

 

[saveasteading]

On 30/06/2026 at 22:22, MPx said:

how building houses is a viable business

The house building itself is ancillary and a bit of a nuisance.

Buy land, get houses built, sell houses.

The money will be made by getting the land at the best price, then squeezing more houses onto it, combined with rising demand when there was some.

 

Would the developers take turns at getting the land so as to keep the price down? I wouldn't be surprised, but the chances of proving anything would be very small. It will have been doe by some 'understandings'  and nothing in writing.

 

Only very big developers can do it because there are a lot of funds tied up for a long time. Thus it will really be the lenders who are doing well.

At present there are developments around here that are on hold because they aren't selling.  3 year old houses on the same estates are selling at 10% less than they cost. There are too many units available and also some doubts among potential buyers about the future.

The land and building cost the developers too much during a boom period.

Then the subsidiary of an arm of a contractor can be allowed to go out of business while the ownership and profits are already elsewhere. 

But if the price rises then they do not spend more on better quality, but keep the money.

 

But still there are big sites getting planning permission.