Following the Competition and Markets Authority (“CMA”) investigation into the leasehold market in June last year (read the blog here), the CMA has found that around 100,000 families in the UK have been misled regarding costs of ground rent, the cost of converting leasehold to freehold ownership, and fees.
Consequently, the CMA will take enforcement action against the firms who have breached consumer protection law.
The results of the investigation have also prompted the CMA to advocate changes in the legislation in this area. By working alongside the Government, the CMA will aim to implement reforms, such as a ban on the sale of leasehold properties and lowering ground rents for new leases to zero.
The CMA will also start preparing advice for individuals who already own or wish to purchase a leasehold property. The advice will include guidance in respect of what individuals can do when asked to pay unreasonable permission fees and service charges.
Colman Coyle aims to publish a further post once the CMA has finalised its advice for individuals and new legislation has been implemented.