Angela Rayner announces crackdown on 'cowboy' leasehold property agents

Angela Rayner has revealed plans to bolster protections for leaseholders against unscrupulous property agents and unexpected charges. Speaking at Labour’s annual conference, the housing secretary confirmed the government’s intention to introduce legislation establishing an independent regulator, as well as initiating a consultation focused on limiting excessive administrative fees. These measures aim to assist the roughly five million leaseholders across England and Wales who often face demands for payments from landlords merely to make alterations to homes they legally own.

Highlighting troubling examples, Rayner pointed out that some leaseholders have been charged £250 just to obtain permission for a pet and £400 to replace their front door. She described these tenants as being at the mercy of “vested interests that only take, while giving nothing back in return.” The government is already in the process of legislating to end the practice of new leasehold flat sales, denouncing the leasehold system as “feudal.” This system currently allows landlords to retain ownership of the land, leasing the property to individuals for a limited period. The proposed Commonhold and Leasehold Reform Bill seeks to replace leasehold arrangements with a commonhold system, enabling residents to collectively own and manage their properties.

Rayner also drew attention to the complex network of management companies acting as intermediaries between leaseholders and landlords. Although many companies operate ethically, she warned that the sector is “undermined by far too many cowboys, crooks and con artists.” According to her, buyers are often deceived into using in-house services, which lack transparency and accountability, allowing exploitative agents to act without restraint. To address this, the government plans to introduce legislation for an independent watchdog tasked with regulating estate agents, managing agents, and estate managers. This new body would have the authority to establish codes of conduct, enforce complaint procedures, and require property agents to be licensed, with penalties including license revocation for non-compliance.

Additional reforms include introducing caps on permission and administration fees that leaseholders pay to landlords. These fees affect those living on freehold estates and privately managed estates, often imposed for minor cosmetic changes or for requesting essential documents like building safety certificates. The government will launch a public consultation to determine appropriate limits. This initiative complements an existing £250 cap on annual ground rents that has been delayed but is expected to take effect by late 2028, although some MPs are pushing for an earlier implementation in 2027. Rayner indicated a commitment to not only cap but ultimately abolish ground rents. While she did not discuss the government’s goal of constructing 1.5 million new homes by the next election, she previously acknowledged the target is “a slim chance” of being met. Additionally, ministers recently introduced the “Your First Home” policy to assist first-time buyers with a 2.5% deposit, reminiscent of the Help To Buy scheme from 2013. Rayner also intends to enhance council powers to requisition empty properties to address the need for social housing and reduce homelessness, though this move has drawn criticism from Conservative opponents who labeled it a “desperate” effort to meet housing targets

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