Housebuilders are to be investigated over the mis-selling of thousands of leasehold properties after a U-turn by the competition watchdog amid pressure from ministers.
The Competition and Markets Authority (CMA) said it would examine the scandal surrounding new-build homes sold on leases that were subject to substantial increases in ground rents and the charging of “permission fees” for home improvements.
Developers and freeholders could face legal action if the watchdog finds evidence of leasehold mis-selling. The watchdog said it would decide whether the practices constituted “unfair terms”, a breach of consumer contract law.
