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Government plans new caps on leaseholder permission and administrative fees

The government has announced plans to introduce caps on fees charged to leaseholders and homeowners on freehold estates for various requests and administrative tasks.

  • The government plans to legislate to give the Secretary of State powers to cap fees for leaseholders and homeowners on freehold estates.
  • These caps would apply to permission fees for requests like keeping a pet, and administrative fees for documents or mortgage changes.
  • The government also intends to introduce independent regulation for property agents, requiring licenses and qualifications.

The government today confirmed plans to introduce new rules aimed at providing leaseholders and those living on freehold estates with more rights and protections. Under the current system, individuals can face charges for landlord permission for simple requests, such as keeping a pet, with no clear oversight of costs.

New legislation will grant the Secretary of State powers to cap these fees, ensuring they are genuinely reasonable. These powers will also extend to privately managed estates, addressing similar charges for minor cosmetic property changes.

The legislative changes are also intended to address administrative fees, which landlords can charge for providing documents like building safety certificates or for notifying them of a change in mortgage provider. A public consultation will be launched to determine the scope and amounts for these caps.

Additionally, the government intends to introduce independent regulation for property agents. This would require agents to obtain licenses and appropriate qualifications to operate, with a regulator having the power to revoke licenses if standards are not met. The government stated these measures will support over 5 million existing leaseholders and future homeowners.

Why this matters: These changes are intended to provide stronger control, powers, and protections for over 5 million existing leaseholders and future homeowners.

What this means for you: If you are a leaseholder or homeowner on a privately managed estate, you may see caps introduced on fees for permissions and administrative tasks, and property agents may become independently regulated.

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