The CMA (Competition and Markets Authority) have issued an interim update report on leasehold houses mis-selling. The findings totally vindicate the work of the National Leasehold Campaign and Leasehold Knowledge Partnership in publicising the selling practices and onerous leases being almost universally promoted by the big plc housebuilders in recent years. The report identifies the major areas it will work on and plans to call for more evidence.
In paragraph 14 there is specific reference to “fleecehold” :
The Secretary of State for Housing, Communities and Local Government, a number of MPs, and members of the public have expressed concerns about freehold mis-selling – so called ‘fleecehold’. This is a separate issue from those presently under investigation as our current focus is on issues
in leasehold home ownership. As the CMA’s Chairman, Lord Tyrie, has said, the CMA will in due course consider whether to investigate freehold mis-selling, assessing the matter against its prioritisation principles.
However we wish to complete our work in leasehold first and anticipate that doing so will assist us should we open a case on freehold mis-selling
What we would like is for them to also understand that estate charges are based on unfair contracts both for leasehold and fleecehold – it is not just a matter of mis-selling although this has happened with fleecehold too. The private estate market is rife with anti-competitive practices including embedded management companies, and sale of rent charges and/or land to private companies without any resident input, accountability or choice.
