The Competition and Markets Authority have today announced that they have found evidence of serious issues in the sale of leasehold homes. This includes mis-selling and unfair contract terms, meaning many leaseholders are left trapped in contracts with high fees and unreasonable conditions.
This has included people trapped in properties with escalating ground rents they are unable to sell, and being charged disproportionate fees for maintenance of communal areas or making changes to their home. There are also too many instances of freeholds being sold on without the leaseholders knowledge, denying them the opportunity to buy their freehold at the rate they were promised prior to purchasing their homes.
“It is unacceptable that leaseholders in Worsley and Eccles South are facing escalating ground rents, poor service from their freeholders and are having their freehold sold on without their knowledge – depriving them of the opportunity to buy it out themselves.
Today’s news from the Competition and Markets Authority shows that the Government must bring forward action now to end the sale of new leasehold homes, and end the excessive fees that existing leaseholders are forced to pay.
Anything less than immediate action will mean leaseholders in Worsley and Eccles South continue to suffer as a result of the mis-selling of leasehold homes.”
Labour Shadow Secretary of State for Housing, John Healey, said:
“Labour and leasehold campaigners forced this investigation last year and it confirms the scale of the problems with leasehold mis-selling.
“Ministers should legislate to stop the sale of new leasehold homes, and end the unfair fees and contract terms that existing leasehold home-owners face. There’s nothing in the Government’s legislative programme to help hard-hit leaseholders.”
For more information, details of the CMA investigation can be found here: https://www.gov.uk/government/news/cma-finds-evidence-of-serious-issues-in-leasehold-selling