Share Prices & Company Research

Market News

19 Mar 2021 | 07:44

Taylor Wimpey and Countryside ordered to scrap unfair leases

(Sharecast News) - The UK's competition watchdog has ordered Taylor Wimpey and Countryside to tear up onerous ground rent terms that have left many leaseholders trapped in their homes. The Competition and Markets Authority said the housebuilders' imposition of ground rents that double every 10 or 15 years breaks consumer protection law. It has told the companies to remove the unfair terms from all existing properties and to agree not to use them in future leasehold contracts.

The CMA has been examining potentially unfair terms for leaseholders for almost two years in response to a public outcry over escalating ground rents and high charges. It is also investigating Persimmon and Barratt Developments over the possible mis-selling of leasehold homes.

Andrea Coscelli, the CMA's chief executive, said: "These ground rent terms can make it impossible for people to sell or get a mortgage on their homes, meaning they find themselves trapped. This is unacceptable. Countryside and Taylor Wimpey must entirely remove all these terms from existing contracts to make sure that they are on the right side of the law."

The CMA said it would take Taylor Wimpey and Countryside to court if the companies did not carry out its instructions. The regulator said it was still scrutinising Persimmon and Barratt and would deal with investment companies that bought unfair freeholds from developers.

Taylor Wimpey said: "We have now received a letter from the CMA setting out its concerns and confirming that it intends to move to the next stage of formal consultation. We will continue to cooperate with the CMA and work with them to find a satisfactory resolution, within the required timescale."

Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 7th December 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.