Government鈥檚 leasehold reforms should not hit sector, firm says
Retirement housebuilder McCarthy & Stone said it remained locked in talks with ministers over government鈥檚 plans, outlined last December, to reform rules around ground rent.
Last December communities secretary Sajid Javid outlined measures to crack down on what he called 鈥渇eudal practices鈥� within the leasehold system in England, including a ban on leaseholds for almost all new build houses, following a series of scandals which saw ground rents charged to leaseholders rocket.
Bournemouth-based McCarthy & Stone said there was a 鈥渟trong case for a very specific exemption鈥� for the retirement housebuilding sector 鈥渄ue to its unique viability model and the need to fund the construction of the shared areas, and we are seeking swift clarification on this matter.
鈥淯ntil this is received, we continue our planning to mitigate the potential impact on the business, including maintaining discipline around our cash position and adopting a more measured approach to securing land.鈥�
The group鈥檚 comments came as it reported a 52% slide in pre-tax profit for the six months to 28 February 2018 to 拢10.5m on turnover up 1% at 拢239.6m.
Trading had been hit by what the group called 鈥渙ngoing subdued conditions in the secondary market and the lower number of new first occupations鈥�, while the dive in profits was put down to a lower level of completions, rising costs and increased use of part-exchange deals.
Clive Fenton (pictured), McCarthy & Stone鈥檚 chief executive, said while he recognised the government鈥檚 goal of supporting first-time house buyers with Help To Buy, the UK remained 鈥渨oefully unprepared鈥� when it came to housing what was fast becoming 鈥渁 rapidly ageing population.
鈥淲e are calling for a joined-up policy approach across all government departments to encourage the delivery of better housing options for older people,鈥� he added.
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