Over 5,000 leaseholders – some of them private landlords – could get refunds on their ground rent after the Competition and Markets Authority won new pledges from nine firms that bought freeholds from housebuilder Taylor Wimpey.
A further four housebuilders – Crest Nicholson, Redrow, Miller Homes and Vistry – have also agreed to work with the companies who purchased their freeholds to remove doubling terms.
A statement from the CMA says all nine firms must now remove problematic contract terms that cause ground rents to double in price every 10 years. The firms will also remove contract terms which were originally doubling clauses, but were converted so the ground rent increased in line with the Retail Price Index.
The CMA believes that the original doubling clauses were unfair and should therefore have been fully removed – not replaced with another term that still increases the rent.
Sarah Cardell, interim chief executive of the CMA, says: “For years leaseholders have been plagued by what we believe are unfair practices. That’s why we sought to tackle the problem by launching action against some of the biggest names in the business.
"As a result of our work, over 20,000 people now have a new lease of life, freed from issues like costly doubling ground rent terms.”
And Housing Secretary Greg Clark adds: “Levelling up home ownership and creating a fairer, more transparent leasehold system is a top priority for this government, and these agreements are an example of this in action.
"We will work with the CMA to continue challenging industry on its practices, so we can ensure more leaseholders get the fair deal they deserve.”
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About time, the government now need to look at Estate Rent !! That is worse 😩 Don’t have any properties subject to it, but know people who do, another rip off.
Freehold only, and no 'Estate rent' , wouldn't touch anything else
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