13 March 2024 , 13:07
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Over 500 households will be freed from "problematic" leaseholds that doubled their ground rent every ten to fifteen years.
The competition watchdog announced that these households, whose homes are owned by eight different companies, will have their ground rent returned to the original amount when they first bought their homes. This means that since 2019, more than 21,000 families have been released from what the Competition and Markets Authority calls "problematic leasehold issues".
More than 30 companies have been involved in this effort. The terms can trap people in houses that are hard to sell. If they can't keep up with payments, they might even lose their homes.
The eight freehold companies that changed the contract terms bought them from big builders like Countryside, Crest Nicholson, Miller Homes, Redrow, Taylor Wimpey and Vistry. They took over the contracts these companies had signed.
George Lusty, who is in charge of Consumer Protection and Markets for now, 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."
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"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."