2nd Mar 2020 10:18
(Alliance News) - Ground Rents Income Fund PLC on Monday noted the announcement by the UK Competition & Markets Authority on Friday last week, that it would take enforcement action against unfair practices in the leasehold sector.
The fund said the investigation into such practices by the UK regulator was ongoing, and that the timescale, the specific outcome and the resulting impact on Ground Rents Income's own portfolio was uncertain.
However, the company said it has openly assisted the CMA in developing its understanding of the leasehold market, and that it welcomes many of the steps the UK government, law commission and CMA are taking to stamp out poor practices in the housebuilding industry.
"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," Ground Rents Income stated.
"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, or doubling, while retaining their existing review cycle," the company added.
Shares in Ground Rents Income were up 0.8% at 88.20 pence on Monday in London.
By Dayo Laniyan; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Ground Rents