Property managers should be regulated to keep pace with the millions of leasehold properties across England and Wales, according to the firm Rushbrook. The firm argues that five million leaseholders in England and Wales need greater protection due to concerns about how properties are managed and fees are charged.
This call for tighter regulation comes as the government proposes strengthening leaseholders’ rights. These proposals include requiring property agents to obtain a licence and introducing a cap on fees.
Government data indicates there are an estimated 4.9 million leasehold dwellings across all tenures, with 4.633 million in the private sector. The average annual service charge paid by owner-occupier leaseholders reached £2,169 in 2024-25, marking a 26.2% annual increase. Over five years, the average annual service charge has increased by 33.4%. Additionally, average annual ground rent for owner-occupier leaseholders rose by 34.3% from £235 in 2023-24 to £315 in 2024-25.
Roma Sharma, Managing Director of Rushbrook, stated that property managers are entrusted with people's homes and substantial sums of money, making it appropriate for professional standards to keep pace. Sharma added that while rising charges do not automatically indicate unfair treatment, it is crucial that charges are fair, transparent, and justifiable, with accountability for the service provided.