New regulator to protect 5 million leaseholders from 'cowboy' property agents
UKPulse Property Desk
Housing Secretary Angela Rayner has announced new protections for an estimated five million leaseholders in England and Wales, including an independent regulator for property agents and a consultation on capping administrative fees.
- An independent regulator will be established for property agents, requiring them to obtain a licence and adhere to codes of practice.
- A public consultation will be launched to determine caps on permission and administration fees paid by leaseholders to landlords.
- The changes aim to protect leaseholders from hidden fees and practices by some management companies.
Housing Secretary Angela Rayner has announced that leaseholders in England and Wales will receive additional protections from property agents and hidden fees. Speaking at Labour's annual conference, Ms Rayner stated the government plans to legislate for a new independent regulator and launch a consultation to cap administrative fees.
These changes are expected to affect approximately five million leaseholders who can currently face charges from landlords for making simple alterations to their homes. Ms Rayner cited examples of leaseholders reportedly being charged £250 for pet ownership permission and £400 to change a front door.
The proposed independent regulator would establish codes of practice, including standards of conduct and complaint handling. Property agents would need a licence, which could be revoked if they fail to meet required standards. New legislation would also create the power to cap permission and administration fees paid by leaseholders to landlords, with a public consultation to help decide the cap rates.
Why this matters: The proposed changes aim to address concerns about a lack of transparency and accountability in the management of leasehold properties, potentially reducing unexpected costs for leaseholders.
What this means for you: If you are a leaseholder in England or Wales, these changes could lead to greater protection from unexpected fees and improved standards from property agents managing your building.