Regulation of leasehold managing agents revealed

Leasehold managing agents will be regulated, the Government has confirmed.

A statement from the Ministry of Housing, Communities and Local Government (MCHLG) as part of the latest move on leasehold reform revealed the plans to introduce independent regulation of property agents.

The announcement said it will give leaseholders, tenants and homebuyers a route towards better rights and protections.

Property agents will be required to obtain a license to do the job, as well as appropriate qualifications to operate. If they fall foul of the required standards, the regulator would have the power to take their licenses away.

These measures will fundamentally rewire homeownership.”

The department says: “A regulator can set codes of practice, such as standards of conduct and proper complaint handling for those they regulate.”

On leasehold reform, the Government says it will cap fees where homeowners need freeholder permission such as for keeping a pet.

These powers will also cover privately managed estates where homeowners can face charges for minor cosmetic changes to their properties.

As well as permission fees, the legislative changes will enable a clamp down on administrative fees, where landlords can charge for providing documents on request, like building safety certificates, or even for simply notifying them of a change in mortgage provider.

A public consultation will be launched on the scope of what should be capped and the amount for each item.

Leasehold controls

The statement adds: “These measures will fundamentally rewire homeownership, whilst supporting over five million existing leaseholders and future homeowners, who will benefit from stronger control, powers and protections.”

No timeline was revealed, but the statement says the Government is committed to bringing forward these changes as soon as possible.

This new regulation will cover managing agents rather than traditional high street estate agents and lettings agents.