The NAEA Propertymark Leasehold: A Life Sentence? report revealed three in five (62 per cent) of leasehold property owners felt they were mis-sold and a further 93 per cent wouldn’t buy another leasehold property.
The CMA revealed its decision to examine whether leasehold contract terms are unfair and set out the position in a letter to Clive Betts MP, chair of the Housing, Communities and Local Government Committee.
Clive Betts replied to the CMA to say:
The CMA says it’s conscious that information gathering on the general problems in the leasehold sector has already taken place through the recent work through various bodies on Leasehold and Commonhold Reform and that proposals for market reform are already in progress at the Law Commission and in government.
The CMA has stated that the work that they will undergo under consumer protection law will be complementary to the reform work already under way.
What are NAEA Propertymark doing?
The ‘Leasehold: A Life Sentence?’ report breaks ground on the leasehold scandal and sets out our robust recommendations to tackle the growing problem of life sentence leaseholds.
NAEA Propertymark has worked closely with Leasehold Solutions, the National Leasehold Campaign and Leasehold Valuers, to raise awareness of the scandal and to bring the latest leasehold advice to agents and consumers alike.
You can read more about what Propertymark is doing, what we are calling for guidance and more on our policy page.
Propertymark has produced an Understanding Leasehold guide which provides NAEA Propertymark members with best practice and key information when it comes to helping people buy and sell leasehold property. If you are logged in you can access this below:
Understanding leasehold
This guide provides Propertymark estate agents with best practice on helping people buy and sell leasehold property. Estate agents have a level of responsibility under the Consumer Protection Regulations to pass on all material information in respect of a lease.
Image attributions: "Clive Betts Official MP Portrait" used under CC BY 3.0 / Cropped from original