Rayner proposes watchdog for property agents and caps on leasehold fees

Angela Rayner has announced plans for an independent regulator of property agents and powers to cap some fees charged to leaseholders. The housing secretary said the changes would give homeowners more protection when dealing with agents and landlords, but the watchdog and fee limits still need legislation and further decisions before they can take effect.

In her Labour conference speech on 29 September, Rayner said property agents would have to obtain a licence. According to the BBC’s report of the announcement, the proposed regulator could set standards for conduct and complaint handling, then remove licences from agents who breached the rules. The government said it wanted to bring forward the changes ‘as soon as possible’; it gave no start date.

What the watchdog could do

The licensing proposal targets the agents who manage buildings and work between leaseholders and freeholders. It would create a means of excluding an agent from that work if the regulator withdrew its licence. The BBC said it remained unclear whether estate agents would also fall under the new body’s remit, so the announcement does not yet define the full range of businesses that would need a licence.

Rayner said there were decent businesses in the sector, but argued they were undermined by ‘far too many cowboys, crooks and con artists’. Those words were her description of the problem, rather than a finding against particular agents. The proposed regulator’s standards and enforcement powers would still have to be set out in legislation.

Which charges might be capped

Rayner also announced legislation to enable caps on permission and administration fees. A consultation would help decide their level, so there is no announced maximum that a leaseholder can rely on now. The BBC reported that the proposed limits could also reach homeowners on freehold and privately managed estates who pay for permission to make cosmetic changes or for documents such as building safety certificates.

As examples of what people face, Rayner said she had heard of a £250 charge for permission to keep a pet and a £400 charge to change a front door. The BBC reported those examples from her speech; they were not presented as independently verified cases. They illustrate the type of one-off cost the proposed cap is meant to address, although the eventual scope and rate are still to be decided.

The government’s 2025 consultation explains why these fees can arise. It said a lease can require a homeowner to seek consent before making an alteration, subletting or keeping a pet. A landlord may incur costs considering a request, but the ministry said leaseholders also complained that charges were unclear and inconsistent between similar cases. The earlier consultation proposed a published schedule showing what administration charges might be payable and how an amount would be calculated.

Who is affected, and what remains open

About five million leaseholders in England and Wales could be affected by the broader protections, according to the government estimate reported by the BBC. That figure does not mean every leaseholder would pay a capped fee or deal with an agent subject to the same rules. The effect on an individual home will depend on the final scope of the legislation and the arrangements for its building or estate.

The new proposals sit alongside a wider programme of leasehold reform. The ministry’s earlier consultation described service charges as a major source of requests for help from leaseholders and discussed how to implement transparency measures in the Leasehold and Freehold Reform Act 2024. It also proposed mandatory qualifications for managing agents in England as an initial step toward stronger regulation. Rayner’s announcement adds a proposed licensing watchdog, but the government has yet to publish its detailed remit or a date when it would begin operating.