Britain’s competition watchdog has declared a win for thousands of people caught up in the UK’s leasehold scandal.
The Competition and Markets Authority has secured formal commitments from investment group Aviva and housebuilder Persimmon that will help customers who bought homes on leasehold, rather than owning the freehold.
Aviva is one of several investment companies who bought freeholds from housebuilders.
Some leaseholds on new developments stated that ground rents would double every 10 years. This left leaseholders trapped in spiralling ground rent contracts, making some homes unmortgageable, and leaving owners unable to move and facing hefty bills.
Aviva has agreed to remove controversial and unfair ground rent terms that saw the ground rents paid by leaseholders double every 10 or 15 years, and to repay those who have lost out through those rising ground rents.
Persimmon Homes has agreed to allow leasehold house owners the opportunity to buy the freehold of their property at a discounted price of £2,000.
That follows a probe into reports that people were told they could buy their freehold at a certain price, only for it to increase by thousands of pounds with no warning.
Persimmon is also extending its Reservation Period for home buyers from 35 days to 42 days.
Last year the CMA launched enforcement action involving Persimmon, Barratt Developments, Countryside Properties and Taylor Wimpey, into whether they had broken consumer protection law in relation to leasehold homes. It is also looking into other investment firms who have bought freeholds.
Today, it is urging other housebuilders and investors to follow Aviva and Persimmon’s lead.
Meanwhile, flash PMI surveys from businesses in the UK, Europe and the US will show whether the economic recovery is holding up this month.
The UK’s travel industry is holding a day of action to put pressure on the government to reopen the sector and provide tailored financial support to businesses.
Events are planned outside the parliaments in London and Edinburgh, and in cities and airports around the UK.
Industry body Abta estimates that up to 195,000 jobs have been lost or are at risk within the UK travel industry, while a survey of members found more than half did not have enough money to survive more than three months in current conditions.
Pharmaceuticals group GlaxoSmithKline is holding a capital markets day, where chief executive Emma Walmsley will update investors on her plans to restructure the company into a pharmaceuticals-and-vaccines business, dubbed “New GSK”, and a consumer healthcare business.
It’s a crucial day for Walmsley, since New York-based Elliott Management took a multibillion-pound stake in GSK in April to push for change, with some investors concerned over slow progress with the drugs pipeline.
The agenda
• 9am BST: Eurozone flash purchasing managers' index for services and manufacturing, June
• 9.30am BST: UK flash PMI
• Noon: US weekly mortgage applications
• 3pm: US new home sales
• 3pm BST: US flash PMI
We’ll be tracking all the main events throughout the day ... |
