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The Competition and Markets Authority secures formal commitments from Aviva and Persimmon to address ground rent and freehold purchase problems for leaseholders

23rd June 2021

The Competition and Markets Authority (CMA) has announced today that is has secured formal commitments from Aviva and Persimmon as part of its ongoing work to tackle issues in the leasehold sector.

The commitments signed by Aviva and Persimmon – known formally as ‘undertakings’ – mean they have now agreed to the following:

  1. Aviva will remove from leasehold contracts:

Where Aviva is the current freeholder, those leaseholders’ ground rents will revert to the original amount – i.e. when the property was first sold – and this will not increase over time. Aviva has agreed to repay homeowners the excess money they had paid over this time.

  1. Persimmon will:

The CMA has also written to the investment groups Brigante Properties, Abacus Land and Adriatic Land, setting out its concerns and requiring them to remove doubling ground rent terms from their contracts.

For more information on the CMA’s ongoing investigation and for future CMA updates, please visit the leasehold case page.

Other information:

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LEASE is governed by a board, appointed as individuals by the Secretary of State for the Ministry of Housing, Communities & Local Government.

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