<p><span>The Competition and Markets Authority (CMA) has ordered Taylor Wimpey and Countryside to remove unfair ground rent terms from all their existing contracts or face further action.</span></p> <p><span>The CMA, which in September launched <a href="https://www.house-builder.co.uk/news/cma-launches-action-against-housebuilders">enforcement action</a> against the two housebuilders as well as Barratt and Persimmon on leasehold practices, has now written to Taylor Wimpey and Countryside expressing its concerns over terms attached to their leasehold homes which double ground rent every ten to 15 years.</span></p> <p><span>It stated that the practice broke consumer protection law and that the two housebuilders should remove all such terms from existing contracts, and not use them again in future leasehold contracts. CMA added that it would consider court action “if these developers do not address our concerns”.</span></p> <p><span>The two housebuilders can avoid court proceedings by signing formal commitments – “undertakings” – to remove the ground rent terms from their leasehold contracts.</span></p> <p><span>The CMA is also, as part of its review of the leasehold sector, continuing to investigate companies that purchased freeholds from the housebuilders and are still using the same contract terms.</span></p> <p><span>It added that it was continuing to investigate Barratt and Persimmon.</span></p> <p><span>In 2017, it emerged that some housebuilders had been selling houses …