15 September 2021
Countryside Properties plc
Agreement of voluntary undertakings with CMA
Countryside Properties plc ('Countryside'), a leading UK mixed-tenure developer, has agreed voluntary undertakings with the Competition and Markets Authority (CMA) which the CMA has confirmed brings their investigation into the historical sale of leasehold properties with doubling ground rent clauses by Countryside to a close.
Countryside has given voluntary undertakings to the CMA under which it will seek to remove all 10 and 15 yearly doubling clauses from leases where the ground rent is not for the ultimate benefit of a local authority or registered provider of social housing, at no cost to leaseholders:
· For leases where Countryside is the freeholder, Countryside is removing the doubling clause unilaterally.
· For leases where Countryside is not the freeholder, Countryside is seeking agreement with the owners of the freeholds to remove the doubling clause from each lease.
Countryside expects to make a further provision of £5 million, in addition to the £10 million provision previously announced for the Ground Rent Assistance Scheme.
Countryside has not sold any properties with doubling ground rent clauses since 2017. Countryside was not the subject of mis-selling allegations in the CMA's investigation.
Iain McPherson, Chief Executive of Countryside, said: "Countryside has engaged extensively and constructively with the CMA throughout the course of its review to reach this positive outcome for affected leaseholders."
Countryside Properties - 01277 260 000
Victoria Prior - Managing Director, Corporate Affairs
Brunswick Group LLP - 020 7404 5959
Nina Coad / Robin Wrench