Leaseholders face fewer hidden charges as the government announces independent regulation of property agents and new caps on permission fees
The government has confirmed new powers to cap fees charged to leaseholders and introduce independent regulation of property agents, in a package of reforms unveiled by housing secretary Angela Rayner at the Labour Party Conference in Liverpool on Tuesday.
Under current rules, leaseholders and homeowners on privately managed freehold estates can be charged for routine requests with no certainty over costs and no regulatory oversight. The government said it would legislate to give the secretary of state powers to introduce caps on permission fees – such as those levied when a leaseholder wants to keep a pet or change a front door – as well as administrative charges such as fees for providing building safety certificates or for notifying a landlord of a change in mortgage provider.
A public consultation will be launched on the scope of what should be capped and the level at which caps should be set.
What the new regulation covers
For the first time, the Ministry of Housing, Communities and Local Government (MHCLG) said it intended to introduce independent regulation of property agents. Under the proposals, agents will be required to obtain a licence and hold appropriate qualifications in order to operate. A regulator would set codes of practice covering standards of conduct and complaint handling, and would have the power to revoke licences from those who fall short of the required standards.
The measures are intended to protect more than five million existing leaseholders, as well as future homeowners, the government said.
Rayner used her conference address to frame the announcement in direct terms. She described estate agents, letting agents, and property management agents as a sector with many decent businesses, but said those businesses were "undermined and undercut by far too many cowboys, crooks and con artists," with homeowners, renters, and leaseholders paying the price through hidden fees and traps.
She said people who should be excited about buying a home were being "tricked into using overpriced in-house services," while unqualified and unlicensed agents were mishandling client money with no transparency or accountability.
"We will legislate for independent regulation to rein these cowboys in," Rayner said. "They will be required to follow the rules and if they don't – their licences will be taken away."
The leasehold announcements sit alongside the government's existing commitment to cap and eventually abolish ground rents for existing leaseholders, a step Rayner described as "calling time on" an injustice where some leaseholders were paying hundreds or thousands of pounds each year to unaccountable investors for nothing in return. She added that her government was also committed to ending what she called "fleecehold" – the practice of charging similar fees to homeowners on freehold estates.
What does the industry say?
Jason Charles, head of education at Rightmove, welcomed the regulatory direction, saying it reflected a shift already under way across the sector.
"We support the government's commitment to formal regulation in the property industry, which is something many agents have been getting ahead of through official education for their teams," he said. "We first made official qualifications available for agents back in 2022, and over the past year demand has surged by 128%."
According to Rightmove's own research, seven in 10 home-movers would prefer to work with a qualified agent, while over 70% of renters and homeowners believe agents should hold formal qualifications. Charles said agents played a critical role in helping people navigate one of life's biggest decisions, and that clear standards, qualifications, and effective regulation could help improve consumer confidence.
"We look forward to working with the government on the proposals," he added.
The announcement represents a significant step in the government's wider leasehold reform agenda. Rayner returned to the housing brief in July under prime minister Andy Burnham, having previously served in the role from July 2024 until her resignation in September 2025. Since returning, she has moved quickly on several fronts, including legislation on rough sleeping, council housing, and homelessness prevention announced in the same week as this leasehold package.
For brokers, leasehold reform carries direct implications for mortgage lending, particularly where ground rent levels and service charges affect valuations, lender appetite, and purchasers' ability to obtain finance. The proposed fee caps and the introduction of transparent complaint handling through a new regulatory framework could reduce the risk of purchasers being surprised by costs after completion.
The government said it was committed to bringing forward the legislative changes as soon as possible and would set out more details in due course.
"Agents play a critical role in helping people navigate one of life's biggest decisions, and clear standards, qualifications and effective regulation can help improve consumer confidence," Charles said. "We look forward to working with the government on the proposals."
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