Mar
23

Unfair contract terms must be removed from leases

The Competitions and Markets Authority (CMA) has told Taylor Wimpey and Countryside Properties to remove terms in their contracts that double ground rents every 10 or 15 years, saying it breaks consumer protection law. This comes following the launch of enforcement action by the CMA against four housing developers in September 2020 (here) for mis-selling and unfair contract terms relating to ground rents. The CMA’s chief executive Andrew Coscelli said “These ground rent terms can make it impossible for people to sell or get a mortgage on their homes, meaning they find themselves trapped. This is unacceptable. Countryside and Taylor Wimpey must entirely remove all these terms from existing contracts to make sure that they are on the right side of the law."…"If these developers do not address our concerns, we will take further action, including through the courts, if necessary." Read the government’s press release here.