On December 21, when Sajid Javid announced his plans to reform leasehold, housebuilders shares started sliding.
The biggest fall was in retirement builders McCarthy & Stone which dropped 10% and has stayed there since.
McCarthy & Stone specialise in the retirement sector, where sadly some of the worst exploitation occurs, with not only inflated ground rents, and huge service charges but even ‘exit fees’ if a resident wants to leave!
It’s telling that those who invest in such companies knew full well what a dodgy business model it was, and that fair play for residents means reduced profits.