Taylor Wimpey has ditched ground rent rises for leaseholders following an investigation by the Competition and Markets Authority.
The CMA said on Wednesday that the housebuilder has given consent for it to remove terms from leasehold contracts that cause ground rents to double in price every 10 years. This means that affected Taylor Wimpey leaseholders will now see their ground rents remain at the original amount from when the property was first sold.
Taylor Wimpey chief executive Paul Redfern said he was “pleased that today’s voluntary undertakings will draw this issue to a full close, within our original financial provision”.
CMA chief executive Andrea Coscelli said: “This is a huge step forward for leaseholders with Taylor Wimpey, who will no longer be subject to doubling ground rents. These are totally unwarranted obligations that lead to people being trapped in their homes, struggling to sell or obtain a mortgage. I hope the news they will no longer be bound into these terms will bring them some cheer as we head into Christmas.
“Other developers and freehold investors should now do the right thing for homeowners and remove these problematic clauses from their contracts. If they refuse, we stand ready to step in and take further action – through the courts if necessary.”
The CMA opened a case against four developers in September 2020. Three have now settled with the watchdog but an investigation into Barratt Developments is ongoing.
