There’s been a broad welcome from agents and other industry organisations for the latest report from the Competition and Markets Authority warning of possible enforcement action on mis-selling of leasehold properties.
The CMA report states that the issues it has identified, such as onerous ground rents and dubious sales practices, have caused, and will continue to cause, “significant harm to leasehold homeowners.”
NAEA chief executive Mark Hayward says: “We have long called for action to be taken to help leaseholders who have been misled and treated unfairly.
“For too long, housebuilders and developers have not been transparent enough about what it actually means to buy a leasehold, which in turn has meant many owners have been faced with escalating ground rents and unreasonable fees, leading them into financial difficulty.
“Our research shows 62 per cent of leaseholders feel they were mis-sold and therefore it’s vital enforcement action takes place as soon as possible to give some hope to those who are currently trapped with no easy route out.”
Leasehold reform campaigner, Louie Burns, Managing Director of the Leasehold Solutions Group, says: “This is a damning report that highlights numerous leasehold abuses and we are pleased to see that the CMA is prepared to act against the developers and freeholders responsible.
“It is vital that the CMA takes robust action to hold those responsible for leasehold abuse to account and ensure that consumers are protected going forward. We also feel that leaseholders should have a clear and effective system of redress and a means to seek compensation where instances of mis-selling can be proven. We look forward to the forthcoming publication of the CMA’s proposed enforcement action.”
The CMA’s investigation into abuse in the leasehold housing market is still ongoing and the latest update ca be seen here.