Ground Rents Income Fund PLC CMA - Leasehold Housing Market Investigation (6607E)
02 March 2020 - 8:30PM
UK Regulatory
TIDMGRIO
RNS Number : 6607E
Ground Rents Income Fund PLC
02 March 2020
Ground Rents Income Fund plc
Competition and Markets Authority - Leasehold Housing Market
Investigation
Ground Rents Income Fund PLC ("the Company") notes the update
report published on Friday 28 February 2020 by the Competition and
Markets Authority ("CMA"), which is investigating alleged
misleading selling practices and unfair consumer terms in the
leasehold housing market.
As stated in the Annual Report and Financial Statements for the
year ended 30 September 2019, the Company has openly and
transparently assisted the CMA to develop its understanding of the
leasehold market.
The Company welcomes many of the steps Government, the Law
commission and the CMA intend to take to stamp out poor practice in
the housebuilding industry concerning leasehold houses, to protect
consumers in the home sale process and to improve standards and
transparency in residential property management sector.
The Directors are wholly supportive of reform that delivers an
equitable, transparent and better experience for homeowners. The
Company has therefore been proactive in addressing consumer
concerns regarding onerous ground rents. For example, since
September 2017 the Company has implemented an asset management plan
to offer residential leaseholders with doubling ground rents,
regardless of review cycle, the opportunity to convert their
existing doubling review mechanism to the lesser of inflation, as
measured by the Retail Prices Index (RPI), or doubling, while
retaining their existing review cycle.
In March 2019 the Company signed the Government's 'Public Pledge
for Leaseholders', which we believe is an important step towards
positive change reflecting our desire to bring about sensible,
well-thought-out reform. The Pledge essentially extends the
Company's asset management plan indefinitely.
The Company is committed to working with Government, the Law
Commission and the CMA to appropriately reform the industry and to
support existing leaseholders, working towards meaningful reform
that protects all stakeholders in the sector.
The Company notes that the CMA investigation is ongoing and that
the timescale and specific outcome of the investigation, together
with the resultant impact on the Company and its underlying
portfolio, is uncertain. The Company will consider the CMA report
further with its advisors and keep shareholders advised of
progress. The Board continues to advocate for leasehold reform that
strikes a fair balance for all stakeholders in the sector.
Contacts:
Schroder Real Estate Investment Management Limited
James Agar / Matthew Riley
020 7658 6000
N+1 Singer (Broker)
James Maxwell / Ben Farrow
020 7496 3000
Tavistock (Media)
James Whitmore / Jeremy Carey
020 7920 3150
Appleby Securities (Channel Islands) Limited (Sponsor)
Andrew Weaver
01481 755 600
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END
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