Government goes further to protect leaseholders
The UK government will legislate to cap unreasonable fees charged to leaseholders and introduce independent regulation of property agents to strengthen protections for over five million homeowners.
Leaseholders currently face unpredictable fees for routine requests such as keeping a pet or making minor property changes, with no clear oversight or limits on costs. The government will introduce legislation granting the Secretary of State powers to set reasonable fee caps that landlords must follow, covering both leasehold properties and privately managed estates. These caps will extend to administrative charges, including fees for providing documents like building safety certificates or notifying changes in mortgage providers. A public consultation will determine which fees are capped and at what levels, ensuring transparency and fairness in the process.
For the first time, the government will establish an independent regulator for property agents, responsible for setting codes of practice and handling complaints. Agents will be required to obtain a license and meet qualification standards to operate legally. The regulator will have the authority to revoke licenses if agents fail to comply with required standards, providing leaseholders, tenants, and homebuyers with stronger rights and protections.
The proposed changes aim to fundamentally reform homeownership by addressing long-standing issues faced by leaseholders and future homeowners. Over five million existing leaseholders and prospective buyers will benefit from enhanced control, clearer fee structures, and greater accountability in property management. The government has committed to progressing these reforms promptly, with further details to be announced in due course.
The reforms respond to widespread concerns about exploitative practices in leasehold and estate management, where leaseholders often lack recourse against unreasonable charges. By capping fees and regulating property agents, the government seeks to create a fairer system that balances the rights of leaseholders with the responsibilities of landlords and managing agents. The measures are designed to provide practical protections without imposing undue burdens on legitimate property management.