The Eurozone economy is “booming”; Aviva and Persimmon agree on changes to leasehold rights-business facts | business

Good morning, and welcome to our rolling reports on the world economy, financial markets, the Eurozone and business.

The British competition watchdog announced that thousands of people involved in the British leasing industry scandal had won.

The Competition and Markets Authority has obtained a formal commitment from the investment group Aviva And house builders persimmon This will help customers who buy rental houses instead of freehold ownership.

Aviva It is one of several investment companies that buy freehold rights from house builders.

The lease rights of some new development projects indicate that the land rent doubles every 10 years.

This has caused tenants to fall into rising land lease contracts, making some houses unable to be mortgaged, preventing landlords from moving and facing huge bills-prompting the government to promote reforms:

Aviva has agreed to cancel the controversial and unfair land rent clause, that is, the land rent paid by the lessor will be doubled every 10 or 15 years, and the people who have suffered losses due to the increase in land rent will be repaid.

CMA explained:

• Aviva will remove certain clauses from the lease contract that will double the rent payable by the lessor. It will also delete clauses that were originally double clauses and have been converted to RPI-based rent clauses. The double clause that causes land rent to double every 10 to 15 years means that it is often difficult for people to sell or mortgage their homes. They also affect the property rights of the lessee. If Aviva is the current permanent holder, the rents of these renters will be restored to the original amount—that is, the amount when the property was first sold—and will not increase over time.
• Aviva also agreed to repay homeowners affected by these double rent clauses. This means that where the rent increases, people will refund the excess fees they paid during this time.

Persimmon Homes has agreed to allow leasehold owners the opportunity to purchase freehold ownership of their property at a discounted price of up to £2,000.

This resolved the concerns that consumers raised with the CMA and local trade standards. They were led to believe that they could buy freehold at a certain price, but later discovered that the price had risen by thousands of pounds without warning.

persimmonThose who stopped selling leased houses in 2017 have agreed to:

• The expansion of its existing purchase rights program limits the purchase price of freehold rights to £2,000. The expansion plan will apply to any housing leases sold on or after January 1, 2000, and will be valid until December 31, 2026;
• Customers who have obtained freehold from Persimmon under the existing purchase rights scheme and still own the freehold can apply for reimbursement for the difference between the price paid and £2,000;

Persimmon also extended the booking period for its buyers from 35 days to 42 days.

Last year, the CMA initiated enforcement actions involving Persimmon, Barratt Developments, Countryside Properties and Taylor Wimpey. Have they violated consumer protection laws related to rental housings. It is also investigating other investment companies buying freehold.

Today, it urges other homebuilders and investors to follow suit Aviva And persimmon’s lead.

Andrea KosselI, CEO CMA, Say:

This is a real victory for thousands of tenants-people have long found themselves trapped in difficult-to-sell houses or faced unexpectedly high prices to buy their freeholds. Now, they can breathe a sigh of relief because they know that things will get better.

Aviva and Persimmon responded positively to this investigation, which was great and enabled the renter to resolve these issues. But our work has not yet been completed. We now expect other real estate developers and investors to follow Aviva and Persimmon. If not, they may face legal proceedings.

Came today too

Quick PMI survey Companies from the United Kingdom, Europe and the United States will show whether the economic recovery this month will continue.

British tourismy is holding a one-day operation to put pressure on it government Reopen the department and provide tailor-made financial support for the enterprise.

Activities are planned to be held outside the parliament in London and Edinburgh, as well as in cities and airports across the UK.

Industry body Abta estimates that as many as 195,000 jobs in the UK tourism industry have been lost or are at risk, and a survey of members found that under current conditions, more than half of people do not have enough money to survive for more than three months.

Pharmaceutical Group GlaxoSmithKline The Capital Markets Day is being held, and CEO Emma Walmsley will brief investors on her plan to restructure the company into a pharmaceutical and vaccine business (known as the “New GlaxoSmithKline”) and consumer healthcare business.

For Walmsley, this is a crucial day because its headquarters is in New York Elliott Management holds billions of pounds in GlaxoSmithKline Promoting changes in April, some investors are worried about slow progress in the pharmaceutical pipeline.

My colleague Julia Kollevi Explanation:

The head of the UK’s second largest drugmaker will present a 10-year outlook to shareholders and analysts. Under pressure from aggressive US hedge funds, she is the right person to lead the company after its dissolution next summer.

Agenda

• BST 9 am: Eurozone June Service and Manufacturing Purchasing Managers Index Initial Value
• 9.30 AM BST: UK PMI Flash
• Noon: U.S. weekly mortgage application
• 3 pm: New home sales in the United States
• 3pm British Summer Time: US PMI initial value