UK’s Competition Regulator Investigates Housebuilders

The Competition and Markets Authority (CMA) has opened an investigation into four of the UK’s biggest housebuilders over the sale of leasehold properties, reported Bloomberg. 

The watchdog said in a statement Friday morning, September 4, that it had started enforcement cases against Barratt Developments, Countryside Properties, Persimmon, and Taylor Wimpey after finding “troubling evidence of potentially unfair terms concerning ground rents in leasehold contracts and potential mis-selling.”

“The move comes after the CMA uncovered troubling evidence of potentially unfair terms concerning ground rents in leasehold contracts and potential mis-selling,” the statement said. “It is concerned that leasehold homeowners may have been unfairly treated and that buyers may have been misled by developers.”

Possible outcomes from the action include legal commitments from the companies to change the way they do business, or taking the firms to court if necessary, the CMA stated.

Full Content: Bloomberg

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