Great News from the CMA

We are thrilled to hear that the government watch dog, the Competition and Markets Authority, are taking action against a sample of the national volume housebuilders over mis-selling leasehold houses. This action vindicates the work of the National Leasehold Campaign and the Leasehold Knowledge Partnership in lobbying for change and highlighting the issues for home buyers of new build leasehold houses.

You can read what the CMA have to say about their investigation here and it is clear that they are still focussing on leasehold selling practices.

This is however good news for HorNets, as they have undertaken to look at fleecehold pending the outcome of the leasehold enquiry.

What are HorNets doing about it?

We submitted evidence to the parliamentary select committee on leasehold reform in 2017, which surprisingly was accepted, but disappointingly not included in their issues for the CMA to investigate.

We have written to the CMA on a number of occasions about fleecehold pointing out not only the mis-selling, but the anti-competitive nature of the management arrangements on many developments. We believe that they know there are issues and we are optimistic that they will pick up on them – our only concern is timescales, as estate residents are being exploited right now, with further unfairness in some cases during the pandemic.

We intend to write again and ask about timescales and consider what other avenues may be open to us now that action is being taken against some of the big names.


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5 Replies to “Great News from the CMA”

  1. Great, because we’re about running out of time with yet more threats from extortion to pay toward indefinite tp-1 contracts. This is not what people bought. I certainly did not sign up to this mis-sell. I was told the council and Highways will adopt the estate within 2 years, that was 8 years ago! Chamonix Estates, Woodgate Court, built by Linden Homes, is an absolute disgrace. I’m not certain if I’m therefore freehold or leasehold. Can we now consult with our solicitors to establish our rights as homeowners?

  2. I have just submitted the e-form on the DCLG website, requesting if they will now turn their attention to the management company situation. The prospects of ever removing the so-called management company are very slim because it involves canvassing a whole development in the hope enough residents will support a removal. Given that many residents are in housing association properties, MOD and private-rented houses, this is a tall order. The situation, effectively, locks hundreds of residents into unscrupulous management firms.

  3. Your efforts are great, as I have reported to you, Sovereign Harbour in Eastbourne is a prime example of a private estate that is subject to a particularly horrendous annual estate Rentcharge. Owned by The Wellcome Trust, it has 3,400 owner residents, all of whom have to pay – via their expensive over £261.50 per annum annual estate Rentcharge – to the Environment Agency for a coastal flood defence plan that does not just include the 1 kilometre length of Sovereign Harbour but is in the same coastal flood defence area stretching 9 miles east to Bexhill On Sea. Yet the 17,500 homeowners from Pevensey Bay to Bexhill pay nothing at all. We are planning a national newspaper campaign as our MPs and councils have declined since 2003 when this injustice first started, to right this wrong.

    1. Thank you – HorNets are all ordinary home owners some with more onerous liabilities than others. As you say, your development illustrates how new home buyers are effectively funding infrastructure improvement for their whole community. Not only is this unfair, but it is not made clear at the point of sale.

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