It has been reported that a number of retirement home firms have become the target of the consumer watchdog, the Office of Fair Trading.

The watchdog group is targeting around twenty six of these firms following claims that they could be mistreating their elderly clients through misleading and unfair contracts. There are concerns over the fees that these companies may be charging to clients who decide to buy or let their properties in terms of exit fees.

The watchdog has expressed concerns that the contracts that come with these exit fees could be in breach of Unfair Terms in Consumer Contracts Regulations.

The OFT is now looking into these concerns and one official from the watchdog stated: ‘This investigation is motivated by the need to ensure that terms and conditions are clear and fair.’

The agency has contacted the twenty six companies, which are as yet unnamed, and has provided them with two weeks to respond.

An official from the charity Age Concern and Help the Aged stated: ‘This is good news for thousands of people living in retirement properties who are angry about the charges they incur when they come to sell or rent their homes. Rather than enjoying their retirement, older, potentially vulnerable people are experience a huge amount of stress and worry as they try to ensure the charges they are paying are fair.’

However, he said that whilst the OFT intervention was welcomed there was plenty of other measures that needed to be looked at. He added: ‘We have heard from hundreds of residents who are concerned about many unfair practices that retirement homes are carrying out. The Government needs to improve regulation across the industry as a whole and create simple ways to challenge unfair housing charges.’

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  5. Seven in ten homes fall under stamp duty threshold

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