The Competition and Markets Authority (CMA) has closed its investigation into Barratt Homes over the sale of leasehold accommodation.
The AMC says it has now “closed its case” and concluded that it was “insufficient to support a clear legal case for the AMC to secure a class action for Barratt leaseholders under its powers in consumer law”.
He says that “was unlikely to change with further investigation and therefore pursuing the case would not be a good use of resources”.
Since the investigation began, Barratt’s sales practices have changed and they no longer sell leasehold homes.
Meanwhile, the CMA also notes that it is “positively engaging” with companies that have purchased freehold properties from Taylor Wimpey.
It states that it is “to obtain formal undertakings from these landowners to remove the doubling clauses from their leases, and any doubling terms that have been converted to be based on the index of Retail price”.
This follows Taylor Wimpey’s commitment to the CMA to help get these clauses removed at no cost to tenants.
The watchdog says it will provide an update “in due course.”
In June last year, the AMC reached an agreement with Aviva to pay tenants whose ground rent has doubled and with Persimmon Homes, to give tenants the option of buying their freehold at a reduced price.