Clive Fenton (Image: www.mccarthyandstone.co.uk)
The boss of retirement housing builder McCarthy & Stone has strongly criticised the government’s policy on a range of issues, including a proposed ban on ground rent, as he revealed he was stepping down from the business.
Chief executive Clive Fenton announced that he would retire and step down from the board at the end of the firm’s financial year on 31 August.
The news came on the same day that a trading update revealed that McCarthy & Stone expected a full-year profit of £65m to £80m, down from £96m the previous year, following a disappointing spring selling season.
Fenton said: "As the undisputed leader in the provision of much-needed retirement housing, we have made great strides in growing the business and increasing supply into the market. Unfortunately, since Brexit, in the absence of any government support and now with the additional challenges posed to the business by the proposed ban on ground rents, it is clear that the group must embark on a new strategy to carry it safely through the next five years and beyond.
"Having reached the age of 60, it is right that I now stand aside at the end of our financial year to enable a new chief executive to be responsible for this journey."
Former housing secretary Sajid Javid announced in December last year that the government would set ground rents on new long leases for both houses and flats to zero, as well as making it cheaper for existing leaseholders to buy out their freehold as part of a crackdown on "unfair and abusive practices" within the leasehold system.
At the time, Javid said: "It’s unacceptable for home buyers to be exploited through unnecessary leaseholds, unjustifiable charges and onerous ground rent terms.
"It’s clear from the overwhelming response from the public that real action is needed to end these feudal practices. That’s why the measures this government is now putting in place will help create a system that actually works for consumers."
