The Competitions and Markets Authority (CMA) have launched enforcement action which focuses on the practices of four leading developers in relation to the sales of new build leasehold houses.
The CMA are concerned that buyers have been misled as to:-
- the terms contained in their leases relating to ground rents;
- the availability of purchasing freehold interests instead of leasehold interests;
- the cost of buying the freehold of their leasehold houses in the future.
The CMA are also concerned that developers are resorting to unfair sales tactics to pressure potential buyers into proceeding with the purchase of the leasehold house.
We are pleased to see that some action is being taken to protect buyers of new build properties against unfair leasehold practices and we welcome the outcome of this enforcement action which will hopefully result in greater safeguards for potential buyers.
To view the press release in full, please click here.