UK watchdog closes case against Barratt over leasehold contracts

(Reuters) -Britain’s competition regulator said on Tuesday it had closed the case against Barratt Developments Plc, the country’s largest homebuilder, related to alleged mis-selling of leasehold homes.

The watchdog had launched a probe into some of the country’s biggest housebuilders in September 2020 in relation to possible mis-selling of leasehold homes and high ground rents.

The Competition and Markets Authority (CMA) also said it was “positively engaging” with firms that purchased freeholds from housebuilder Taylor Wimpey to secure formal commitments from them over removing conditions pertaining to doubling of rents.

Taylor Wimpey, Britain’s No. 3 homebuilder, last year said it would drop contract terms that lock leaseholders into rents that double every 10 years.

“The CMA concluded that it was insufficient to support a clear legal case for the CMA to secure collective redress for Barratt leaseholders under its consumer law powers,” the regulator said in a statement.

Barratt and Taylor Wimpey did not immediately respond to Reuters’ requests for comments.

(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Vinay Dwivedi)