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The UK’s ‘motorways in the sky’ are on track to be redesigned for the first time since the 1950s, thanks to a £5.5 million investment announced today (19 March 2021).

Before the coronavirus (COVID-19) pandemic, there were approximately 7,000 aircraft in UK airspace, dependent on a complex network of routes that allows planes to operate safely. However, since these flight paths were initially mapped out ecades ago, growing numbers of routes and a surge in demand has resulted in an increase in delays, noise and pollution.

The £5.5 million fund announced today will support airports to develop and evaluate design options aimed at making journeys quicker, quieter and cleaner.

Although national lockdown restrictions remain in place, meaning everyone must stay at home unless travelling for a very limited set of reasons, this work will help the sector build back better and greener from the pandemic.

Aviation Minister Robert Courts said:

As an island nation, our airspace is vital in keeping us connected to the rest of the world.

Modernising our ‘sky motorways’ could put an end to the days of circling the airport waiting for a landing slot, improving efficiency, and leading to flights that are quicker, quieter and greener than ever before.

Mark Swan, Head of the Airspace Change Organising Group (ACOG), said:

We’re delighted that the government has reaffirmed the essential role that airspace modernisation will play in helping the aviation industry to build back better from the COVID-19 pandemic.

We will continue to work with our partners across the industry to ensure this programme is one that delivers for all of the UK.

Creating more efficient and streamlined airspace, not only benefits airports and airlines but also the passengers and communities surrounding them, through reduced emissions, lower levels of noise pollution and fewer delays.

The investment has been made available to airports involved in the Airspace Modernisation Strategy to ensure this vital project remains on track, reflecting the government’s commitment to modernising the airways while supporting the aviation sector as we recover from the pandemic.

The government has also put in place one of the most comprehensive packages of business support in the world, pledging around £7 billion for the aviation sector since the start of the pandemic while working to develop a framework for the restart of safe and sustainable international travel.

The Global Travel Taskforce will publish its recommendations next month, with international travel resuming from 17 May at the earliest.

In September 2020, the Competition and Markets Authority (CMA) launched enforcement action against 4 housing developers. These included Countryside Properties and Taylor Wimpey, for using possibly unfair contract terms, and Barratt Developments and Persimmon Homes over the possible mis-selling of leasehold homes.

The CMA has now written to Countryside and Taylor Wimpey outlining its specific concerns that their use of terms that double the ground rent every 10 or 15 years breaks consumer protection law.

As this increase is built into contracts, it means people can struggle to sell or mortgage their homes, and so find themselves trapped. These terms can also affect their property rights.

To address the concerns, the CMA is requiring the removal of ground rent terms which it thinks are unfair from all existing Countryside and Taylor Wimpey contracts to make sure they are no longer in breach of the law. The companies must also agree not to use the terms again in any future leasehold contracts.

Andrea Coscelli, CMA Chief Executive, said:

These ground rent terms can make it impossible for people to sell or get a mortgage on their homes, meaning they find themselves trapped. This is unacceptable. Countryside and Taylor Wimpey must entirely remove all these terms from existing contracts to make sure that they are on the right side of the law.

If these developers do not address our concerns, we will take further action, including through the courts, if necessary.

Housing Secretary Robert Jenrick said:

The Government asked the CMA to conduct this investigation. I strongly welcome their efforts to bring justice to homeowners affected by unfair practices, such as crippling ground rents, which have no place in our housing market. This behaviour must end and I look forward to appropriate redress being forthcoming for leaseholders.

The Government is pursuing the most significant reforms to leasehold in forty years, including by protecting future homeowners, restricting ground rents in new leases to zero and ending the use of leasehold in new houses altogether.

Countryside and Taylor Wimpey now have the opportunity to respond to the CMA’s detailed concerns and avoid court action by signing formal commitments – known as ‘undertakings’ – to remove the ground rent terms from their leasehold contracts.

As part of its review of the leasehold sector, the CMA will also continue to investigate certain firms – such as investment companies – which bought freeholds from these developers and have continued to use the same leasehold contract terms. Its investigation into Barratt Developments and Persimmon Homes is also ongoing.

For people who own, or are looking to buy, a leasehold property, the CMA has produced written and video guidance, which offers advice on a number of issues, including what people can do when faced with fees and charges they consider unjustified.

For more information on the CMA’s ongoing investigation and for future updates, please visit the leasehold case page.

Notes to editors

1. As an enforcer under Part 8 of the Enterprise Act 2002, the CMA cannot levy administrative fines but it can enforce the above legislation through the courts, and where appropriate, obtain additional measures to improve consumer choice, drive better compliance with the law, or obtain redress for consumers.
2. The main provisions of consumer protection legislation relevant to the CMA’s concerns about ground rent terms are the Unfair Terms in Consumer Contracts Regulations 1999 (UTCCRs) and Part 2 of the Consumer Rights Act 2015 (CRA). The UTCCRs and Part 2 of the CRA aim to protect consumers against unfair contract terms, and require contract terms to be fair and transparent. Ultimately, only a court can decide whether a contract term is unfair.
3. The CMA has not yet reached a view on whether Barratt Developments or Persimmon Homes have been involved in any or all of the outlined practices.
4. People wishing to provide further evidence regarding the companies named can get in touch via email: leasehold@cma.gov.uk.
5. For further information please contact the CMA press office via press@cma.gov.uk or on 020 3738 6460.