Competition Markets Authority
Undertakings accepted from 9 more freeholders
24 August 2022: 9 more freeholders have committed to make changes for the benefit of leaseholders. This follows similar commitments given by Taylor Wimpey in December 2021.
The 9 freeholders had purchased Taylor Wimpey freeholds and have now given their commitment to remove clauses which caused the ground rents payable by leaseholders to double in price every 10 years.
Where applicable, the freeholders will also remove terms which were originally doubling clauses but were converted into RPI-based ground rent terms and will repay many homeowners who were affected by these doubling ground rent clauses. The ground rent for affected leaseholders will remain at the amount it was when the property was first sold and will not increase over time.
The CMA is also engaging with a further 4 national developers Crest Nicholson, Redrow, Miller Homes and Vistry who have agreed to make similar beneficial changes and/or to work with the companies who purchased their freeholds to remove doubling terms, as applicable.
Following our update on 18 March 2022, the CMA has now concluded its discussions with 2 remaining freeholders who had purchased Countryside leases. Freeholders D.A.T.S. (Holdings) Limited and Wallace Estates Limited have now both given similar commitments to make changes for the benefit of leaseholders.
Freeholder Undertakings (Taylor Wimpey Leases):
- (24.8.22)
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- Press release: Thousands more leaseholders to get money back (24.8.22)
Freeholder Undertakings (Countryside Leases):
- (24.8.22)
- (24.8.22)
The CMA is in ongoing discussions with 5 remaining freeholders with affected Taylor Wimpey leases: Plaza 2 Surbiton Limited, Island Apartments Freehold Limited and Madison Close Freeholders Limited, who have agreed in principle to provide undertakings, along with the Abacus Land and Adriatic Land investment group, and Elmdon Real Estate LLP.
Investigation update
16 August 2022: The CMA is positively engaging with firms who purchased freeholds from Taylor Wimpey in order to secure formal commitments from those freeholders to remove doubling clauses from their leases, and any doubling terms that were converted to be based on the Retail Price Index (RPI). This follows Taylor Wimpeys commitment to the CMA to help get such clauses removed at no cost to leaseholders. The CMA will provide an update in due course.
Regarding its investigation into alleged mis-selling by Barratt Homes, the CMA has now closed its case. Following careful scrutiny of the evidence gathered, the CMA concluded that it was insufficient to support a clear legal case for the CMA to secure collective redress for Barratt leaseholders under its consumer law powers. This was unlikely to change with further investigation and consequently continuing with the case would not be a good use of resources. Barratts sales practices have changed, and they no longer sell leasehold houses.
Undertakings accepted from 15 more freeholders
18 March 2022: 15 more freeholders have committed to make changes for the benefit of leaseholders. This follows similar commitments given by Countryside in September 2021.
The 15 new freeholders who had purchased Countryside freeholds have now given their commitment to remove clauses which caused the ground rents payable by leaseholders to double in price every ten or fifteen years. Where applicable, the freeholders will also remove terms which were originally doubling clauses but were converted into RPI-based ground rent terms and will repay homeowners who were affected by these doubling ground rent clauses. The ground rent for affected leaseholders will remain at the amount it was when the property was first sold and will not increase over time.
- Press release: Thousands more leaseholders freed from rising ground rents (18.3.22)
Freeholder Undertakings:
- (18.3.22)
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