The competition watchdog said 15 companies have agreed to exempt 3,500 tenants from contracts where the price of their basic rent doubled every 10 to 15 years
More than a dozen companies have lifted “unfair and unjustified” conditions for homeowners that make it difficult for them to sell their property and sometimes keep them stuck in unaffordable homes.
The competition watchdog said it had agreed with 15 companies that they should release 3,500 tenant from contracts in which the basic pension doubled every 10 to 15 years.
The companies also pledged to eliminate inflation-related rate increases that had replaced some of the original clauses that doubled the rent.
“The CMA (Competition and Markets Authority) believes that the original doubling clauses were unfair clauses and therefore should be removed entirely and not replaced with another clause increasing the basic rent,” the CMA said in a statement.
Homebuyers can either a Leasehold or ownership of land. If you only buy the heritable building right, you usually have to pay a fee to the owner of the property, which is common for apartments and many new housing developments.
But unaffordable changes in rental fees can sometimes result in people having their homes taken away. And even if they do want to sell, buyers are likely to be put off by the onerous terms.
The companies had purchased the land from developer Countryside, with whom the CMA has already reached an agreement.
CMA Chief Executive Andrea Coscelli said: “Thousands more tenants can now rest assured that they will not be forced to pay costly doubling of ground rent.
“We believe these conditions are unfair and unjustified and can leave people trapped in homes they cannot sell or mortgage – a major cause of anxiety and stress for so many.
“We applaud these companies’ commitment to doing the right thing by their tenants by removing these terms and we will honor them.
“While this is a big step forward, our work here is not over. We will continue to work hard to rid tenants of these problematic conditions and will now be looking at other developers.”
https://www.mirror.co.uk/money/thousands-more-people-freed-rip-26502592 Thousands more people have been freed from rip-off rents that make it impossible for them to sell homes