observation21 Dec 2017 10:47
Back in London, retirement home-builder McCarthy & Stone was the worst performer in the FTSE 250, down 9.6%, following the UK government's proposal to reduce ground rents on new long leases to zero.
The company said this proposal would result in a "disruption of housing supply", and "contradicts the government's stated objective of seeking new sources of housing".
McCarthy & Stone has made a strong case for retirement housing providers being exempt from this action, and said it would be requesting further details on the government's acknowledgement that some exemptions are being explored.
"We are disappointed that our representations on this topic and those submitted by others within our sector have not been directly reflected in the government's response. However, this is the first in a number of steps and we will continue to work positively with [the Department for Communities & Local Government] to ensure they recognise the importance of retirement housing in the face of an ageing population," said Chief Executive Clive Fenton in a statement.