CMA breaks doubling of ground rents for 500 more homes   

More than 500 households are the latest to see the end of the doubling of their ground rents after action by the Competition and Markets Authority.  

The watchdog has brought a string of cases against building and investment firms on behalf of homeowners who have been tied down in new build homes because of these leases  

More than 30 companies have signed undertakings to change their ground rent terms since 2019 affecting more than 21,000 households, says the body.  

In this case, the authority brought actions against eight investment firms who bought freeholds originally owned by housing developers, including Crest Nicholson, Taylor Wimpey and Redrow.  

Homeowners then came under leasehold contracts that caused their ground rents to double in price.  

It says: “These terms, which kick in every 10 or 15 years, can leave people trapped in homes they cannot sell or mortgage, and their property rights can be at risk if they fall behind on payments.”  

The regulator says all affected leaseholders will now see their ground rents “returned to the original fee amount, the amount charged when the property was first sold” and will not rise over time.    

CMA interim executive director for consumer protection and markets George Lusty says: “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.  

“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.”  

The eight freeholders in this case are: