Question to the Department for Levelling Up, Housing & Communities:

To ask Her Majesty's Government what assessment they have made of the fairness of contract terms associated with retirement villages, particularly in respect of assignment fees or event fees that are levied when the property is sold after the owner passes away or moves into long-term care.

In 2017, the Law Commission published a report of their review of event fees on behalf of this Department. This followed concerns raised by the Competition and Markets Authority about the fairness of some retirement property leases that have resulted in leaseholders paying an event fee of between 0.25% and 30% of the sale price of the property when selling or sub-letting. Concerns were also raised about the lack of transparency of event fees for older people and their families when purchasing a leasehold retirement property. The Law Commission made a number of recommendations in its report, which can be downloaded (attached) at http://www.lawcom.gov.uk/project/event-fees-in-retirement-properties.

The Government responded to the Law Commission in March 2019 and agreed to implement the majority of the recommendations. The Government is further considering two recommendations, on succession rights and a database of leasehold retirement properties with event fees.