Thousands of people who have bought leasehold homes with the real estate developer Countryside Properties will be released from costly contractual clauses, following an investigation by the Autorite de la concurrence et des marches .
The watchdog has examined the practice of Countryside and other real estate developers of doubling land rent every 10 to 15 years.
These increases, listed in the contProperty rats, leave some homeowners struggling to sell or mortgage their homes while their rights to their property may also be at risk if they fall behind in rent payments.
Countryside Properties has now voluntarily committed to the CMA to remove the terms of its leases that double land rents.
The company will also remove the updated contract terms, which means that the land rent has increased in line with the higher inflation measure of the Retail Price Index. Land rent for affected tenants will now remain at the amount charged when purchasing their home and will not increase over time.
Countryside has confirmed that It was no longer selling leasehold properties with double ground rent clauses.
The announcement comes one year after theCMA data coercive action launched against four real estate developers - Countryside, Taylor Wimpey, Barratt Developments and Persimmon Homes - who he said could have violated consumer protection law in relation to rental housing.
The Aviva insurance group, which bought land from developers, agreed in June to remove land lease conditions which were considered unfair and reimburse owners whose rents doubled afterwards the CMA investigation.
House builder data Khaki also accepted at the time to offer to the owners at bahe the possibility to buy full ownership of their property at a reduced price, and to reimburse some owners who have bought their freehold.
The CMA written to Countryside and Taylor Wimpey in March , like their king to remove land tenancy conditions from their contracts.
Andrea Coscelli, general manager of the CMA, said: "The tenants of Countryside can now breathe a sigh of relief knowing they will no longer have to pay those double land rents. No one should feel trapped in their home, trapped in terms that mean they may have trouble selling or mortgaging their property. "
Coscelli called on Taylor Wimpey and other developers to "do the right thing with their tenants and remove these problematic clauses from their contracts".
He added : "If they refuse, we are ready to step in and take further action - through the courts if necessary.
Countryside said it has not sold any property with doubling ground rent clauses since 2017. He added that he plans to put set aside an additional £ 5million to cover the Land Rent Support program, bringing its total provision for the program to £ 15million.
Iain McPherson, Executive Head of Countryside, said: “Countryside has engaged intensively and constructively with AMC throughout its review to achieve this positive outcome for affected tenants. "