Persimmon retention deal – is it a good deal?

“I know that Persimmon has today, for example, announced the fact that they are going to be the first major housebuilder to bring in a retention idea, so some money will be retained by the buyer’s solicitors to deal with issues if there is anything that comes forward in the future. We’re putting enormous pressure on the housing industry to generally improve standards, particularly with regard to fire safety, and we’ll be reviewing building regulations later in the year to make sure that we get it right.”
Kit Malthouse, Housing Minister
https://www.bbc.co.uk/news/live/uk-england-devon-47573969

NO, NO, NO says Owl!! It’s a fixed percentage of the purchase price!

IT WILL SIMPLY BE BUILT IN TO THE PURCHASE PRICE!

One thought on “Persimmon retention deal – is it a good deal?

  1. Retention is not a good idea.

    1. The retention amount may not be enough to fix major problems.
    2. It puts the onus on the homeowner to get all the work done when the effort to manage it should be from the developer.

    But most importantly…

    3. It will actively encourage builders to cut corners because they will no longer be responsible for the consequences, and they will simply add the retention amount onto the house price because they will know they will not get it.

    Yet another bonkers idea from a stupid government who hasn’t got the sense or intelligence to think about the consequences of their choices.

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