Ellesmere Port & Neston MP, Justin Madders has welcomed the decision by Taylor Wimpey to apologise to leaseholders facing doubling ground-rents and to set aside £130m in compensation.
In a statement issued at its AGM, Taylor Wimpey said that a review of contracts, in which the ground rent doubles every 10 years, found that they were legal but “not consistent with our high standards of customer service”.
However, while he has described the decision as “a significant victory” for the campaign against unfair leasehold practices, he has also warned developers that the “battle for justice is far from over.” He has expressed concerns that statement indicates that it is only those who bought direct from Taylor Wimpey that will be helped, excluding many who found that their freehold had been sold onto an investor.
Commenting, Justin said:
“This is a significant victory, as it establishes clearly an important principle, which is that the developers rather than the purchasers are at fault and that as such, the purchasers need to be compensated.
“What is now needed is for all developers to immediately stop selling houses on a leasehold basis and to recognise their responsibilities to the thousands of people who are disadvantaged. We also need to see any ground rent increases immediately frozen until this takes place.
“The battle for justice is far from being over, but I am more hopeful than ever than our campaign will be successful.”