Countryside Properties PLC Agreement of voluntary undertakings with CMA (8341L)

TIDMCSP

RNS Number : 8341L

Countryside Properties PLC

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 GBP5 million, in addition to the GBP10 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."

ENDS

Enquiries:

Countryside Properties - 01277 260 000

Victoria Prior - Managing Director, Corporate Affairs

Brunswick Group LLP - 020 7404 5959

Nina Coad / Robin Wrench

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END

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