Competition and Markets Authority

Crackdown launched on leasehold mis-selling

Row of houses
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Leasehold property buyers are being "misled and taken advantage of" according to the Competition and Markets Authority.

It said it has found "troubling evidence" of potential mis-selling and unfair contract terms around leaseholds, and is set to launch enforcement action.

Concerns included unreasonable fees, and housebuyers being misled about the differences between buying a leasehold and freehold property.

The CMA said its evidence builds the case for changing the law around leaseholds, including a ban on the sale of new leasehold houses and reducing ground rents for new leases to zero.

It is now gearing up to take action against companies it believes have broken consumer protection law.