Taylor Wimpey has told the Competition and Markets Authority that its leaseholders will no longer see their ground rent double very 10 years.

The housebuilder also says it will remove terms that saw it convert ground rent doubling clauses to instead base increases on the retail price index.

Additionally, leaseholders’ ground rents will remain at the amount specified when their property was first sold.

In the summer of this year, the CMA struck a deal with Aviva to pay leaseholders whose ground rent has doubled and with Persimmon Homes, to give leaseholders the option of buying their freehold at a discounted price.

An investigation into Barratt Developments is “ongoing”, the CMA says.

CMA chief executive Andrea Coscelli says: ““This is a huge step forward for leaseholders with Taylor Wimpey, who will no longer be subject to doubling ground rents.

“These are totally unwarranted obligations that lead to people being trapped in their homes, struggling to sell or obtain a mortgage. I hope the news they will no longer be bound into these terms will bring them some cheer as we head into Christmas.

“Other developers and freehold investors should now do the right thing for homeowners and remove these problematic clauses from their contracts. If they refuse, we stand ready to step in and take further action – through the courts if necessary.

“Of the four developers against whom the CMA opened a case in September 2020 three have now settled with the CMA. Only the investigation into Barratt Developments is still ongoing.”

“This is the kind of issue that could be resolved at pace and met with fines if the CMA receives the consumer powers that the government is currently consulting on.”

And secretary of state for levelling up Michael Gove comments: “Unfair practices, such as doubling ground rents, have no place in our housing market – which is why we asked the CMA to investigate and I welcome their success in holding these major industry players to account.

“This settlement will help to free thousands more leaseholders from unreasonable ground rent increases and other developers with similar arrangements in place should beware, we are coming after you.

“We continue our work to protect and support all leaseholders and our legislation to restrict ground rents in new leases to zero will put a stop to such unfair charges for future homeowners once and for all.”