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Property · Originally published

Leasehold ground-rent reform: what the CMA secured from developers

The regulator’s undertakings provide a factual record of changes to particular escalating ground-rent contracts.

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The debate over leasehold reform includes a concrete record of regulatory action on escalating ground rents. The Competition and Markets Authority’s case page sets out undertakings accepted from developers and freeholders following its investigation.

Changes to affected contracts

In December 2021, Taylor Wimpey committed to remove specified clauses that doubled ground rents every ten years. The commitments also addressed affected leases that had been converted from doubling terms to increases linked to the Retail Prices Index.

The CMA recorded similar undertakings from Countryside in September 2021, covering specified ten- and fifteen-year doubling provisions. For affected leases, ground rent was to return to its original level and remain fixed.

Why the scope matters

The undertakings concern defined groups of contracts. They should not be interpreted as a blanket statement that every ground rent has been removed or that every leaseholder automatically qualifies for the same remedy.

Where the freehold had been sold, the commitments included steps to work with current freeholders. A leaseholder’s practical position therefore depends on their lease and the applicable arrangements.

This factual account replaces the archived personal-profile format with the documented regulatory outcome on the same issue. It makes no claim to have interviewed campaigners and does not attribute a legal victory to any individual without supporting evidence.

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