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PRIVACY
Commercial Property

Persimmon and Aviva agree to 'landmark' leasehold changes amid CMA probe

The agreement following the watchdog's investigation will benefit thousands of homeowners

A Persimmon housing development(Image: PA)

Housebuilder Persimmon Homes and investor Aviva have agreed to "landmark" commitments on leaseholds as part of the competition watchdog's investigation into unfair practices in the sector.

The Competition and Markets Authority (CMA) said Aviva - which invested in freeholds from developers - has agreed to remove ground rent terms considered unfair and repay homeowners who saw rents doubled.

York-based Persimmon has also agreed to offer leasehold homeowners the opportunity to buy the freehold of their property at a discounted price and make repayments to some homeowners who have already purchased their freeholds.

The CMA said the "landmark commitments" would benefit thousands of homeowners - and now expects others to follow suit.

The regulator, which launched enforcement action against four housing developers last September, warned the wider sector to review its practices or face legal action.

It is continuing to investigate housebuilders Countryside, Taylor Wimpey and Barratt Developments over the possible mis-selling of leasehold properties.

The CMA has also written to three more investors in freeholds - Brigante Properties, Abacus Land and Adriatic Land - calling for them to remove doubling ground rent terms from their contracts.

Andrea Coscelli, chief executive of the CMA, said: "This is a real win for thousands of leaseholders - for too long people have found themselves trapped in homes they can struggle to sell or been faced with unexpectedly high prices to buy their freehold.