£130m leasehold hit

TAYLOR Wimpey’s profits have tumbled by nearly a quarter after it set aside £130m to help customers hit by a leasehold scandal.

The housebuilder saw profits plunge 23.7pc to £205m in the six months to July 2, despite recording an 18.5pc jump in revenues to £1.7bn from £1.4bn a year earlier. Earnings were knocked by the provision meant to help customers trapped in onerous leasehold contracts drawn up by the houseb ui l d e r. They were announced in April for what MPs have dubbed the ‘PPI of the housebuilding industry’.

Leaseholders were forced to stomach ground rents that doubled every ten years and the freeholds to their homes were able to be sold to private firms.