Taylor Wimpey drops ‘unfair’ ground rent terms
Leasehold contract changes dropped
House builder Taylor Wimpey has voluntarily given formal commitments to the Competition and Markets Authority (CMA) to remove terms from leasehold contracts that cause ground rents to double in price.
The effect of these increases, which kick in every 10 years, is that people often struggle to sell or obtain a mortgage on their home.
Their property rights can also be at risk if they fall behind on their rent.
Britain’s third-biggest developer will also remove terms which had originally been ground rent doubling clauses but were converted so that the ground rent increased in line with the Retail Prices Index (RPI).
The CMA believes that the original doubling clauses were unfair terms and should therefore have been fully removed, not replaced with another term that increases the ground rent.
The move comes after the CMA launched enforcement action against 4 housing developers in September 2020.