Eight businesses commit to remove terms that double ground rent

The Competition and Markets Authority (“the CMA”) has again intervened to free more leaseholders from ground rent provisions that lead to difficulties with selling and remortgaging.

This means that over 500 households will no longer be subject to terms causing their ground rents to double every 10 or 15 years.

The further action from the CMA means that eight additional firms will now remove such problematic clauses arising from their leases.

The businesses involved, which include investment firms, bought freeholds originally owned by developers Countryside, Crest Nicholson, Miller Homes, Redrow, Taylor Wimpey and Vistry.

All affected leaseholders will now see their ground rents return to the amount charged when the property was first sold, and it will not increase over time.

George Lusty, Interim Executive Director for Consumer Protection and Markets, said

“This is another great win for leaseholders. Over the past five years, we’ve achieved real and impactful change, with over 21,000 households freed from issues such as costly doubling ground rents.”

“We hope those affected by this update can breathe a little easier knowing they won’t have to struggle against this type of rising fee anymore – particularly when many are already grappling with high costs elsewhere.”

Given the Leasehold and Freehold Reform Bill outlines proposals to cap existing ground rents, the CMA’s consumer protection law enforcement work in the leasehold sector is now largely at an end.

• For more information on the CMA’s investigation and for future CMA updates, please visit the leasehold case page
• CMA videos and guides for consumers who may own or be buying a leasehold property