UK Government to Regulate Leasehold Agents and Cap Fees
The United Kingdom government will introduce mandatory licensing for leasehold managing agents and cap fees charged to leaseholders to protect over five million homeowners.
The Government of the United Kingdom announced plans to introduce mandatory regulation for leasehold managing agents and implement caps on various fees charged to leaseholders. These measures are designed to protect more than five million current and future leaseholders and homeowners living on privately managed estates.
The Ministry of Housing, Communities and Local Government will establish an independent regulator to manage a new licensing system. Under this framework, managing agents must adhere to professional standards and follow specific codes of practice regarding conduct and the handling of complaints. The government noted that licenses may be revoked if agents fail to meet these standards.
In addition to professional regulation, the government will cap fees charged by freeholders for permissions, including requests to keep pets or make cosmetic alterations. Caps will also apply to administrative charges for processing mortgage provider changes and providing building safety certificates. While the government has committed to these reforms, it will launch a public consultation to determine the specific scope and levels of the fee caps. A definitive timeline for implementation has not yet been provided.
